By Paul Bennion, Managing Director, DEPPRO
If you have the feeling that you are being taxed too much, then the following figures will confirm that view.
The latest Government finance figures produced by the ABS shows that there has been a big jump to taxation revenue collected by all levels of Government in Australia during the December 2019 quarter.
The figures show that overall taxation revenue increased by 13.4% from $126,740 million in the September quarter 2018 to $143,709 million in the December quarter 2018.
This represents an overall increase of $13,969 million over this three month period.
Overall, the figures show that all levels of Government in Australia are now collecting over average around $1.5 billion in taxes every day.
If you are paying thousands of dollars in income tax every year, then investing in property could be worthwhile consideration once you have discussed your personal financial circumstances with an authorised financial advisor.
The option of investing in property is particularly attractive to people who are processing rapidly in their career and resulting higher wages means even more payments in personal income taxes.
With the new financial year fast approaching, these taxation figures underline the importance of all Australians claiming their legitimate tax allowances to help reduce their taxable income.
For example, an accurate tax depreciation report for an investment property can generate thousands of dollars in potential tax savings each year.
These generous tax depreciation benefits can equate to up to 60% of the property price of a property. That's means potential tax benefits of $300,000, for example, on a property purchased for $500,000.
Over the coming months, many investors will be looking at buying investment properties to coincide with the start of the new financial year.
This is particularly the case with high income earners who want to reduce their taxable income by investing in property to create wealth.
If you buy an investment property, it is important to complete a tax depreciation schedule as soon as possible after settlement so that it complies with ATO guidelines.
For the initial cost of a tax depreciation report - which is tax deductible - by legitimately claiming their full depreciation allowances clients can achieve thousands of dollars in tax benefits each year from their investment. Even an older style home can also qualify for substantial tax depreciation benefits if a depreciation schedule is undertaken around the time of settlement.
To protect their interests and ensure the depreciation report is fully compliant with ATO rulings, property investors should select a company, like DEPPRO, that is a member of the Australian Institute of Quantity Surveyors (AIQS) and uses systems that are fully compliant with ATO rulings.