Negative gearing still a sound strategy if all else is right

Article Abstract:

The practice of negative gearing, or borrowing to invest, is still a profitable strategy for Australian investors, though not just for the sake of tax reduction. Under negative gearing rules, the shortfall between an investment's yield and the interest on a loan is tax deductible, though the yields and rates are close in the Australian economic environment. However, borrowing to invest is still worthwhile if the mixture of interest on the loan, yield, and capital gains is right.

Australia, Tax Deductions & Exemptions, Corporate Tax Investment Credit, Statistical Data Included, Case studies, Investments, Tax deductions, Interest, Interest (Finance), Loans, Investment tax credit

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Tax office leaves parents at a loss over child maintenance

Article Abstract:

A ruling by Australia's tax commissioner on child-maintenance trust removes them as a tax-saving option for poorer families. The ruling disallows assets in the trusts to revert to other family members, even if the child dies. Opponents argue the ruling discriminates against poorer families, who will be unable to use the method as they are unable to permanently surrender the assets.

Poor, Trusts and trustees, Trustees, Trusts (Law)

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Changes in the tax regime could turn your investment strategy upside down

Article Abstract:

Reforms proposed for Australia's tax structure could result in significantly higher taxes for superannuations. A possible 30% top marginal rate (at 47% for 1998) could drive super tax rates up to 65%. Businesses may turn to franking credits to extract more value. Other proposals under consideration include a 10% goods and services tax and a 30% corporate rate (36% for 1998).

Business enterprises

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