Tax Objectives:

The main objective of any tax planning arrangement is to reduce the tax payable in respect of a given quantity of profits or earnings, including profits on the realisation of assets within the CGT regime. In broad terms, there are several different ways of reducing liability to tax. A consultation with an experienced Taxation Lawyer who may have regard to your factual circumstances can assist you in devising the optimal strategy to minimise your taxation liabilities whilst complying with all applicable taxation obligations.

There are multiple strategies in minimising tax. Firstly you may reduce assessable income by activities such as deriving capital, not income; avoid deriving assessable amounts; select the best CGT option for calculating gain; maximise CGT cost base, and use income exemptions. Secondly, you can Increase deductions and offsets by maximising present deductions and concessions, and take advantage available deductions for individuals and businesses. Also you can reduce rate of tax or defer payment of tax. This can be achieved by maximising offsets, using withholding tax provisions, using the averaging rules (which are available for primary producers, artists, composers, inventors, performers, sportspersons and others), and delaying derivation of income. In addition you can choose to divert income by alienating income to another, transfer income-producing assets, contract with associated taxpayers, and using discretionary distributions. Furthermore, you can select suitable tax planning “vehicles”. These include Family trusts, Family partnerships, Family companies, Loss companies, Unit trusts, Loss trusts, Consolidated groups and tax haven vehicles. Devising an optimal and appropriate taxation minimisation strategy, structure and/or activities can be very varied, diverse and complex.  Comprehensive and meticulous legal and financial advice should be sought before entering into such ventures and it is highly recommended that your consult one of our taxation specialists to assist you in these endeavours.

Furthermore, these strategies may conflict in a particular case, so it is important to have a holistic and thorough understanding of taxation law and developments to ensure that the optimal path is taken. For example, for a high income earner it may be desirable to hold a negatively geared property from an income tax perspective, but would be undesirable from a CGT perspective if that property was expected to increase significantly in value. Thus, it is necessary to balance different tax considerations. Also, non-tax issues must also be considered, for instance the high income earner may be an undesirable owner of an asset if that person is a professional who may be subject to a negligence action. Our full service integrated practice of skilled and experienced lawyers, accountants, mortgage brokers and financial advisors may have regard of your situation to ensure that your taxation objectives are reached.

If you need further legal advice on your matter, you may book an appointment with us by telephone on (02) 9233 4048 or by email to info@navado.com.au. 

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.