Investing Tax-effectively

Managing tax implications on investments and income streams matters

Understanding how taxes work and managing their implications on your investments and income streams can help you avoid paying more than you need to and reach your financial goals sooner. Different tax rates apply to various investment structures and vehicles. With the right strategies, interest, dividends, rental income, trust income, foreign investment income, and capital gains tax can be legally reduced or even avoided.

It is wise to take tax investment advice to help navigate the Australian legislative tax system. 

Families Investing

Medical Professionals

Business Owners

Retirement Planners

SMSF Investors

First-time Investors

FAQ about tax-effective investments. Our Authorised tax financial advisers can help you navigate the tax system with advice.

Depending on the marginal tax rate of the investor and their partner, investment income will be taxed at either 19%, 32.5%, 37% or 45% plus the Medicare Levy. If one partner has a different marginal tax rate, this will be the rate used to tax the investment income.

Investors are generally liable for Capital Gains Tax (CGT) when they sell an investment asset they have acquired in their own name or with a partner. The amount of CGT you will have to pay will depend on the type of asset when it was bought and your marginal tax rate. You should also consider any deductions or concessions you are eligible for.

Generally, a CGT discount of 50% is available for investments held for more than 12 months, with the remaining profit taxed at the marginal tax rate of the investor(s) or person(s) owning the asset. Note this does not apply when you sell your home, as there is no CGT payable for selling your house.

You will pay tax when investing through a family trust depending on your investments, the amount of income and capital gains generated, and your overall financial situation. It is advisable to consult a qualified tax professional to get an accurate assessment of the tax you may owe. The tax rate could range from 19% to 45%, excluding the Medicare Levy.

Superannuation funds or SMSFs are subject to a maximum 15% tax rate. Depending on the type of investment and the amount of income generated, you may be liable for income tax, contributions tax, capital gains tax, etc. You should consider speaking to a financial advisor to determine the exact tax amount you may need to pay.

Capital Gains Tax (CGT) is generally capped at 10% when an asset is held within a superannuation fund. Investors may be eligible to pay 0% CGT on investments held within a SelfManaged Super Fund (SMSF) if they meet certain criteria.

ANIG WM is the home of professional Financial Planners and SMSF-accredited Advisers. With our personalised approach, you can trust that your financial future is in good hands.

Message from our-Accredited Tax Financial Advisers

Partner with an ANIG WM Financial Adviser to securely navigate your financial future. Our services are available to individuals and businesses all over Australia. Receive unlimited access to our experienced professionals and their tax-efficient investment strategies, solutions and ongoing review and advice. Trust us to be your guide.