Do you want to pay less tax on the interest income you earn?

 

Often it is the small things that can add up to make a big difference and it can be the same with your tax bill. If you have been diligent in saving your cash into a high interest savings account the last thing you want to do is pay more money to the tax office. Cash reserves provide individuals with a safe and flexible source of funds but it can add a significant tax burden to a high income individual. Some strategies to consider to lower your tax burden may be:

  • Change the individual who is taxed by moving the cash holdings within a family from a high income earner to a low income earner
  • Setup a mortgage offset account to save interest on your mortgage and pay no tax on your savings
  • Transfer your cash holdings to your superannuation fund through contributions and enjoy a lower rate of tax

For some further information about these strategies check out the CIB Tax Guide or give us a call at CIB Accountants & Advisers and ask for Joel Halbert or Graeme Bellach.