Tax

With group certificates and financial year end investment statements about to hit, the attention of most investors turns to tax.

The aim is not to pay more tax than you need to, but there is a fine line between paying what’s fair and pushing the envelope. When you think of tax always have in the back of your mind how you would defend your position if the Taxman came knocking on your door.

Assessing the risk profile of your investments is the first step. We all know deep down when we’ve sailed close to the wind when it comes to tax advantaged investments and structures. Now is the time to check back with your advisers and accountants to make sure those investments haven’t been affected by any recent changes to tax rulings or policies. With such a vigilant tax audit program in place, it may be worth pulling back from any “sharp end” tax planning measures.

Self managed superannuation funds are a case in point. There have been some significant changes in this area which means if you haven’t checked your trust deed then your tax risk has increased substantially.