Minimise your gross capital gain by ensuring assets are older than 12 months before being sold (this makes the asset eligible for the 50% discount on gross capital gain) 3) Salary packaging arrangements Investigate salary packaging arrangements such as salary sacrificing with your employer. An effective salary sacrifice arrangement will effectively reduce an individual’s marginal rate of tax. A typical salary sacrifice arrangement may include the following components: Additional superannuation contributions (noting SGC will increase to 9.5% in 2015) Motor vehicle expenses School fees Note: The contractual arrangements must be put in place (or reviewed and updated) before year end as an individual cannot make a salary sacrifice arrangement for income already earned. IMPORTANT: The top marginal tax rate applies where your income exceeds $180,000. Fringe benefits tax applies the top marginal rate regardless of your income. For taxpayers who are not on the top marginal rate it is possible to take advantage of FBT concessions while being taxed on the benefits as income at lower rates. Wealth accumulation
Asset Development Asset Development is a series of strategies that provide long-term benefits and have the potential to help people with disabilities improve their economic status, expand opportunities for community participation, and positively impact their quality of life experience. Assets are defined as something of value that is owned by an individual. Examples of assets may include: Money you have in the bank (ex: emergency savings) Cash on hand Retirement accounts (ex: 401K, IRA, etc.) or other investments Property you own Owner equity in a home or business Furniture and appliances Miscellaneous items (jewelry, cars, etc.) Skills, education, and work experience financial requirements that will need to be considered in order to achieve the client’s specific objectives Setting goals Setting SMART (specific, measureable, achievable, relevant and timely) goals can help you evaluate the goals you wish to set. Think about whether they are realistic. You should write down your goals in your business plan to help keep you on track to achieve them.
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