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Family Tax Benefits are a Government scheme which helps families deal with the cost associated in raising children. It is paid for dependent children up to the age of 20 years whom live in a household which meet certain income thresholds, for example, to receive some family tax benefits, the maximum income level for a family with 2 dependent children under 18 years is $107, 797.
By using tax effective investments you are able to reduce your taxable income below the relevant threshold and receive some or all of the family tax benefit. Not only will your tax refund increase, you will also be creating an investment which will produce income streams for years to come.
This is the last year that these benefits can be realised used tax effective investments; don’t miss out on this guaranteed way to increase your tax refund.
Please see Sylvia to discuss your ability to receive the Family Tax Benefit.
Case Study
Adrian is on a salary of $95,000 and his wife Emma earns $25,000 working part time. They have two kids, aged 4 and 6.
With a combine income of $120,000, they are not eligible for any family tax benefits as the threshold is $107,797
Adrian and Emma’s accountant recommends that Adrian invest $40,000 in a tax effective product.
When Adrian and Emma lodge their tax return they will receive a tax saving of $14,599 from investing in a tax effective product, plus they are now able to receive a family tax benefit of $3,791. This equals a total tax saving of $18,390.
Adrian and Emma will benefit from:
• Increased tax refund
• Increased FTB
• Establish long term investment streams with expected future income
• Diversify your investment portfolio
For more information, please contact Sylvia and the team on (02) 9585 8444.
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