I have a Jewish associate who finances the wealthy, he told me the wealthy are always intentionally cash poor to keep their taxes down. They basically live on debt that is leaned against their assets. The wealthy also avoid having any direct income where possible. So their homes or car are usually not in their name and leveraged. The other thing I have noticed is when Australians pass a set wealth bracket they pack up and leave as they are often losing up to 70% in taxes. We have a system in Australia that makes being wealthy and staying in Australia a very bad idea.

@MoneywithDan

Жыл бұрын

Thanks for watching. The mega wealthy definitely have more opportunities to legally avoid taxes and do some of the things that you mention, sometimes. The average person can’t follow all of those those tricks however. The average person can definitely do all the steps shown in this video to avoid tax in Australia to help grow wealth faster through higher after tax returns.

@seansingh8862

9 ай бұрын

I'm planning on doing exactly the same thing. After adding up all of the taxes I pay (GST and income tax are the two huge ones, but there are plenty of others) I waste over half a million dollars per annum on taxes, which is roughly the same as my post tax income. People have no idea how painful it is to sacrifice your health, relationships and happiness by consistently working 80+ hour weeks to keep a business running only to hand over more than half of what you have to show for it to a bunch of ingrates who blow it on a bunch of things that you personally disagree with.

@MrDeano-eu9rg

8 ай бұрын

​@@seansingh8862I hear ya mate, started a construction business emd of last year. Only have 3 workers, including myself, and the shit you have to pay is ridiculous. Over 3k a year in work cover alone. What's your business?

@rodbender7946

2 ай бұрын

@@seansingh8862 How long have you worked in Australia Sean? I have lived here all my life and the more money I make, the less I seem to have in terms of wealth. Personal tax, Company tax, GST collection, fuel excise, GST on fuel, GST on purchases, levies, rates, fees, surcharges, stamp duty, licence fees, registrations, etc. Now the cost of living crisis which has effectively demoted the entire population in terms of incomes. I don't think the Government are capable, I actually think they are failing in their duty to the citizens of this nation.

@ricksanchez3278

2 ай бұрын

That's because Australia is a machine used to bleed the middle class dry of all the wealth they generate.

One of the best videos on Australian tax for mid/high income earners, can't get better than this, thanks!

@MoneywithDan

Жыл бұрын

Thanks so much for watching and for your generous comment!

Good video, exactly what I was looking for.

@MoneywithDan

4 ай бұрын

Thanks so much!

Some handy tax tips here to help those who might be overwhelmed or confused come tax time. Nice work! 💪🐶

@MoneywithDan

3 жыл бұрын

thanks so much!

If you’ve sold shares on the ASX this year and want an easy way to calculate capital gains tax then watch this video next kzread.info/dash/bejne/hZd6zZp8fa_Hcco.html

An ETF, or exchange traded fund (not electronic traded funds) , is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund.

@MoneywithDan

Ай бұрын

Thanks. One of my first videos and I misspoke.. hopefully the rest of the video is valuable for you.

Subbed to the channel and here to support fellow finance channel.

@MoneywithDan

2 жыл бұрын

Thanks for your support. I will check out your channel!

Super is tax effective, but the 15% tax does not apply in all cases. If the annual contribution exceeds the concessional contribution cap, the excess is taxed at the top marginal rate. If a person’s income exceeds $230,000, then the entire contribution is taxed at 30%.

@MoneywithDan

Жыл бұрын

Thanks for watching. That is true, but the average Aussie earns well less than that and would still build a significant amount of wealth staying within those limits and would enjoy significant tax benefits over a long period of their life through the magic of compounding higher after tax returns. Also most Aussies would get nowhere near the limits to concessions.

A company wont help you if its sole purpose is investment on behalf of yourself. You pay 30% on company and then rest when you withdraw dividends. And on top of it you spend on an accountant

@MoneywithDan

Жыл бұрын

It depends on the situation but there can be many advantages for people with great wealth and who are on the highest tax rates. In addition to tax benefits there can asset protection benefits. The accountant fees are definitely worth it for the right situation. That’s why advice is so important.

@boarding112

9 ай бұрын

Yeah, the company is taxed at 27.5% but then when the the profits are released in the form of a dividend you are taxed at your individual rate but with a franking credit of 27.5% on the dividend because the company has paid that amount of tax already so essentially it still works out to be a high amount of tax.

@seansingh8862

9 ай бұрын

​@@boarding11225% now for most companies.

I like that guy he's got nuts

@MoneywithDan

Жыл бұрын

He did. His quotes still live on long after he passed.

Electronic traded fund lol wtf

@MoneywithDan

Жыл бұрын

Yes that was a typo. Good pick up.

Now if you have 3million in your superannuation when the government keep pushing the working age limit up. Superannuation is not a good idea

@MoneywithDan

Жыл бұрын

Thanks for watching. IMO Super is still the best tax effective location for wealth creation for the average Aussie with the income and contributions taxed at only 15%, while the average Aussie is taxed around 30% for income outside super. The proposed changes to law that you mention are not yet passed and there are many elections to come before the average super balance gets anywhere near 3m. Right now, the average super balance at retirement is only 600k which is a long way off 3m for most Aussies, even if Labor gets its grubby hands on super.

@josephgodridge2814

Жыл бұрын

@@MoneywithDan After 3 million Albo just increased the tax rate to 30 percent. Superannuation is legal theft, again.

@geoffmerritt

Жыл бұрын

To get $3 million in your super, you need to pay the maximum concessional contributions of $27500 for over 100 years. Any plans of increasing the retirement age to 70 were scrapped by Scott Morrison when he was PM.

@MoneywithDan

Жыл бұрын

@@geoffmerritt hi. thanks for watching. Probably not 100 years 😁 with investment returns compounding. But I agree still very hard overall.

@dont_listen_to_Albo

Жыл бұрын

@@geoffmerrittMost super accounts with more than $3 million are self-managed super funds. If, for example, a person puts 3,000 CSL shares (costing $6,900) in their SMSF at its float in 1993, then when CSL share price peaked at $330 in 2021, the original 3,000 shares (which have become 9,000 shares after their 3 for 1 share split) would have been worth $3 million.

How about giving us some CREATIVE TAX ADVICE?? Wink wink!

@MoneywithDan

Жыл бұрын

Only good advice here.

@saxtonarthur8250

6 ай бұрын

If you make more than $500,000 I might be able to hypothetically provide you with some useful information.