Do you need tax deductions?

Australia is one of the highest taxed nations in the world. People assume that the tax that they pay equates to that which is taken out of their pay at the end of each week. Which in many cases, can be as high as 50%. But it doesn’t stop there. There is tax on virtually every transaction that you do. From getting your hair cut to buying a car.

A great example of this was recently posted by one of my clients:

If you earn $100 and pay $33 income tax, you are left with $67.  If you then buy $67 worth of fuel with what is left, you then pay 48.8% fuel tax. ($32.70) Plus you will also get charged GST on that purchase. ($6.70) This means that on that $100 that you earned, the government as taken $72.40 from you.

That is a tax rate of 72.4% !  Unbelievable.

As you can well imagine most of this tax money is wasted by the government because any money that you have not had to earn typically gets wasted. This is why Australians MUST look at ways to minimise their tax payable. One of the most effective ways of doing this is through investment. Not only does it increase your wealth, but it also serves to redirect some of that wasted tax into assets for yourself.

Get ahead and take care of your own financial future by clever property investment.