The 0% Tax Zone | The 4 Tax Zones Explained | Pay less Tax in Australia Legally | 2019
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- Опубликовано: 6 сен 2024
- What if… you want to reduce the tax you are going to pay over your entire life?
Find out in this video about the 4 tax zones - 46% | 30% | 15% | 0%
What they are, how & when you can use them!
Individual Tax: www.ato.gov.au...
Individual Tax Calculator: www.paycalcula...
Company Tax: www.ato.gov.au...
Superannuation Tax: www.ato.gov.au...
Pension Tax: www.ato.gov.au...
General Advice & Accuracy warning:
The material shown in this presentation is for general information purposes only. It is not intended to be, nor should it be read as specific personal investment or risk advice.
Whilst all care is taken in the preparation of this material no warranty is given with respect to the information provided, and accordingly no responsibility for errors or omissions, including responsibility to any person by reason of negligence is accepted by What If Advice Pty Ltd, or any member or employee of What If Advice Pty Ltd.
Before acting on any of the information contained in this presentation you should obtain special advice from a specialist investment or risk professional, which is appropriate to your specific investment or risk needs, objectives and financial situation.
e) find a dodgy negative llama
lmao
there are two 0% tax brackets. If you earn less than $18200 you pay no tax. Some people can live on this.
I know everyone says the corporate tax rate is 30% but how do you get money out of a corporation to buy stuff you want, like an expensive holiday or boat? With the franking credits system doesn't everything just become the marginal tax rate, which if you're a high income earner becomes 45%?
Thank you for the video and the capital gains tax video . Are you an Australian tax advisor?
Thanks John. I'm an Australian Financial Adviser - one of the areas I help clients with is tax & tax strategy. Feel free to email me directly at ckeniry@whatifadvice.com.au
Would you be able to do a video, on the Barron David Wards affidavit. Zero Tax for Australians.
Can you make a video of company taxes there are in australia? thanks.
Whats more tax efficient then, to pay off a house quicker or to put more in super and have a longer mortgage?
Yeah this is a pretty big question - and this is where people need personal financial advice.
When working with different clients I've given opposing answers to this question question...
It depends on a lot of things.
Your income tax rate, property details (amount owed etc), and your wider financial situation.
We use financial modelling with our clients to work out which method is better, considering both the quantitative and qualitative elements involved.
Depends on your interest rate and returns. Probably super if you arent very sophisticated. If Super is getting you 6% growth + you pay only 15% tax while mortgage is 2.5% rates and you are paying it off after 30% tax its probably better to salary sacrifice to Super.
Hi Conaill, just found your RUclips Channel and really appreciate what you are doing! We have subscribed and look forward to your future videos.
Just a quick question, is it true that non-concessional super contributions are not taxed once they are in your superannuation account and any returns made on those funds are not taxed also?
Hey guys. Hmmm short version is no.. that is not correct.
Non-concessional contributions aren't taxed on the way in... (ie you contribute $10k... you have $10k to invest).. When that money goes up in value - it is taxed if you are in accumulation phase.
Where the confusion comes from is... you super is organised in three groups... "taxable taxed", "taxable untaxed" & "tax free"...
Employer contributions are often "taxable taxed" - ie you've paid 15% on the way in.
Non-concessional money goes into the "tax free" bucket.. (because you've paid tax on that money outside super).
It doesn't mean that investments aren't taxed... it means when you withdraw the money - there isn't any extra tax to pay.
Example - lets say your parents pass away and they give you their super... to receive that money, you'd pay might need to pay some tax on the "taxable taxed" & "taxable untaxed" components... but you wouldn't pay tax on the "tax free" components...
Not sure if that helps or makes sense... :)
What If Advice, thanks so much for the comprehensive response! Just to be clear, let’s take your example: someone contributes 10k as a non-concessional contribution. It won’t be taxed on the way in (because it had already been taxed outside of super). Then, regardless of any other contributions, let’s assume that 10k grows to 20k while in super. When, you begin to remove this money (after retirement), it is part of the “tax free” group so you shouldn’t pay taxes then. So it seems like taxes aren’t paid on the way in or the way out. So what taxes do you have to pay when it is growing?
Sorry, for asking again!
@@ConnorandAlan
Yeah so there are two things here..
1) Tax in super.
2) Tax when you take money out..
1) When the $10k grows ... lets say you bought $10k of shares... when those shares receive dividends.. you'd pay 15% tax on that... also when the shares get to a value of $20k.. you need to sell them before that money is removed from super. So you would pay capital gains tax on that sell transaction.. (so if it was over 12months, thats 10% - see my video on CGT).
2) As for tax on when you take money out of super, it depends how/when/who ...
Example:
If you pass away and give it to your partner - they (most likely) wouldn't pay any tax.. no matter what category (taxable/tax free).
If you pass away and give it to your friend - that person would get the tax free portion tax free.. but would need to pay tax on the taxable component.. (roughly 15%)..
If you take a pension, it is 0% and it doesn't matter what category..
So the withdrawal method changes the tax treatment..
What If Advice ahhhh yes! That clears it up! Thank you so much for taking the time to explain that :) I really appreciate it 😁
@@ConnorandAlan No dramas, glad I could help.
I have existing investment properties. How can I put one of those properties into super? How do I buy property or shares in super?
Not gonna lie, Barry looks good for 65.
But serious question. I'm super ignorant about tax and super. Correct me if I'm wrong with my understanding of what your conveying. If I make a (what's the term?) non-compulsory investment into my super with my income, I can then lower which tax zone I'm in thus lowering the amount of tax owned???
Haha yeah I think it might be all the plastic work he's had done.
Sorry when people ask specific questions like this - it gets VERY close to personal advice... in a general sense...
Yes you can contribute money into super, either as a consessional or non-consessional... (pre/post tax). There are limits, you'd need to check yours.
Then depending on your personal situation, this could lower your personal tax - however there are reasons why you might not do this. Like your current personal tax rate, and a number of other elements... this is where you need to do your own research or see a financial adviser... (sorry I can't answer this question more directly than this....)
e) get paid in cash
At 6.09 how come the 50k into the individual account is only 15% I thought that's in the 32.5% zone? Am I missing something?
Thanks in advance
Ah - I can see how that might be confusing... I should have labelled it better. I'm using the "net tax rate" rather than the tax bracket. (IE Someone who earns $50,000 in the 19/20FY would have paid roughly $7,500 in tax, which is 15% of $50,000) - have a look at pay calculator.com.au. Someone in a 32.5% tax bracket, doesn't pay 32.5% net tax...
When will you add a new video?
haha sorry! I've had a big year, my first new video coming out in a few weeks explaining my absence.. and a bunch of new stuff coming out in July.
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