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1) Should I聽incorporate a company for my business?

It depends. Generally speaking, if your business is of a reasonable size, has commercial risk attached, and you are earning a net profit of at least $80,000, then the answer is a resounding 鈥榶es鈥.

2) Should I buy a real estate property under a Family Trust?

It depends. Generally speaking, if you would like to separate the legal ownership of a property from yourself, then it鈥檚 a good option. And, if you have a large family whose members are over 18 years of age, yet are being taxed at a low marginal rate because of earning a low income, then it can be a very beneficial tax structure.

3) Should I invest in 鈥榥egative gearing鈥 of a rental property?

It depends. Generally speaking, you need to pass 4 main factors to ensure it鈥檚 a worthwhile option for you. 1. You are being taxed at a high marginal tax rate. 2. You have a healthy cash flow in your family budget. 3. The property you invest in is located in a good area for capital growth. 4. It is a long-term investment. If you can say 鈥榶es鈥 to all 4 of these factors then it鈥檚 definitely a viable option.

4) How could聽I save tax?

This is our most commonly asked question. Do you want to save tax? Or, do you want to save money? These are 2 totally different concepts. Saving tax is easy; it鈥檚 just a portion of your income. The better question to ask is, 鈥楬ow can I save tax and money?鈥 For example, how do you turn something seen as a taxable income into a non-taxable income? Or, how can you turn a non-deductable expense into a deductable expense? If you want more information about this, come and see us at Chiu Consulting.

5) Should I lease or Hire Purchase my business vehicle?

It depends. Generally speaking, with a Hire Purchase you get a larger deduction in the initial years by claiming depreciation and interest reduction. However, leasing offers a consistent deduction every year. Therefore, it depends on your unique business鈥檚 income pattern.

6) I am selling my business. Do I qualify for a small business CGT (Capital Gains Tax) concession?

It depends. Generally speaking, if your business鈥檚 net assets are worth less than $6 million you would potentially qualify for a CGT concession. CGT concessions can come in the form of an asset replacement, asset rollover, or retirement. These can result in a significant discount on your Capital Gains Tax.

7) I am not a citizen of Australia. Am I required to declare my overseas income in my Australian tax return?

It depends. Generally speaking, whether you are a citizen or not, the first question you鈥檒l be asked is, 鈥楢re you a resident of Australia for taxation purposes?鈥 As long as you have the intention to live in Australia for the long-term, you鈥檒l be considered liable to declare overseas income as a tax resident.

8) Should I set up a DIY super fund?

It depends. Generally speaking, if you have $100,000 in savings in your superannuation fund, and you have a reasonable understanding of superannuation regulations and obligations, then it could be a very good tax saving vehicle.