Tax Reduction

Ask most people what their biggest expense is and they’ll probably tell you it’s the family home or investment property?

While many loans are similar – lenders and their mortgage consultants are not.

Most can sell you a home loan. Few can show you how you can minimize tax as part of the process. Fortunately for you, you’ve come to AMO. We pride ourselves on helping our customers

1. Own their home sooner
2. Create Wealth
3. Minimise Tax

The reality is, for most Australians the biggest expense is Tax. Yet, most Australians don’t often think about that because their tax is taken out from their pay by their employer. Nor do they think about how they can legally minimise the tax they pay.

Taxation is not fixed. You can minimise tax paid and you can do so with your home, investment property and mortgage.

Here’s some effective Tax Minimisation Strategies. Your AMO Mortgage Consultant will be happy to provide you with more information.

• Use equity in your property to purchase an investment property which brings many tax benefits
• Prepay your interest on investment loans for the next financial year
• Prepay expenses or bring forward repairs and work on your investment property
• Make use of the capital gains tax discount – up to 50% for individuals or trusts
• Use positive and negative gearing on your investment properties
• If you have income protection insurance (link to section on insurance), to protect your income and mortgage, be sure to claim the cost as a workplace expense.
• By using a mortgage offset account (link to section on offset accounts), you minimise the tax paid on interest earned.
• Make use of the NSW State Government Stamp Duty Concessions for First Home Buyers.

IMPORTANT – The NSW State Government will abolish Stamp Duty Concessions for First Homebuyers who purchase an established dwelling from January 1st 2012. The concession will remain in place when building a new home. More information for First Home Buyers can be found here.