Reducing Tax on Lump Sum Payments
Wouldn’t you like to know how to reduce the tax you pay this FY?
Have you received a bonus this year or will have a higher income than normal? If so then now’s the time to start thinking about strategies to reduce the tax you will be paying come June 30. Quite a few clients are getting retention benefits and other bonuses and I’ve had an increase in the level of enquiries about dealing with it.
There’s one really simple and effective strategy we can employ to reduce the amount of tax you’ll pay on the lump sum once you receive it. This strategy involves making a pre-payment of the interest on an investment loan in order to allow a tax deduction on that payment in this FY. There’s a few things we need to consider before we decide if this strategy will work for you but now’s the time to be asking questions about it so we can put plans in motion.
If you’ve received a lump sum bonus this FY and would like to see how you can reduce the tax payable then contact us today.