Growing Wealth - IMB Bank
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Some investments can be more tax effective than others. Some investment strategies that may assist you receive a more favourable tax treatment include:

Contribute more to super

Salary sacrifice contributions to super can reduce the amount of tax you pay and build your retirement savings. The contribution is made prior to income tax being taken out of your wages, and is generally taxed at a maximum of 15% instead of your marginal tax rate which may be as high as 45%. Remember though, that because of the concessional tax treatment there are limits on how much you can contribute. If you exceed the limit, you could incur penalty tax. 

Whilst your money is in super, the earnings are also taxed favourably at up to 15%, instead of your marginal tax rate.

Investment loans

Borrowing money to invest (gearing may be an option to assist you) to manage your tax. You could receive a tax deduction if the cost of borrowing exceeds the income generated by the investment.

If you have an investment loan you may be able to prepay the loan interest up to 12 months in advance and claim a tax deduction.

Selling assets

Timing the sale of assets can affect the amount of tax you pay. Generally, try to avoid selling shares within the first 12 months of the purchase date. After this time only 50% of the growth in capital will be subject to capital gains tax.

An unused capital loss can be carried forward to a financial year when a capital gain applies therefore incurring less tax on that gain.

The decision to sell an asset is an important decision and the timing of a sale can have significant impact on the resultant tax position, we recommend working with a planner to determine the most appropriate time to sell or purchase any asset to avoid unintended tax consequences.
 

Growing your wealth?  
  • How often do you review your finances?
  • Have you put your salary to work for you?
  • Have you established a regular investment program?
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Important information:
The information presented on this webpage is of a general nature and is not intended to be relied upon as a substitute for financial advice. IMB Financial Planning has not taken into consideration your individual circumstances, objective or needs. It is important for you to consider these matters and read any applicable terms and conditions or PDS before making an investment decision. Copies of these documents can be obtained from IMB Financial Planning Ltd by calling 02) 42 62 9050. ABN 23 094 730 195 AFS Licence No. 234660

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Why choose IMB Bank?

Established in 1880, IMB has been helping people achieve their financial goals for 138 years. IMB offers a full range of banking solutions including home and personal lending, savings and transaction accounts, term deposits, business banking, financial planning and can arrange a wide range of insurance and travel products.

IMB has a growing branch network throughout the Illawarra, Sydney, NSW South Coast, the ACT and Melbourne. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you. IMB members enjoy access to free automated phone and internet banking and a team of professionals who are just a phone call away at our locally based call centre.

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