magnificent, page-18

Spender

Fortunately I do have several tax strategies, unfortunately I will still have to pay some tax, although nowhere near half. But I don't mind paying my fair share of tax.

I do not know the way you are set up (as it makes a big difference), but there are a few obvious things you can do.

I am established with the ATO as a professional trader as opposed to an investor, so there are different tax advantages there to start off with. Gains are treated as income rather than capital gain, but you can have some choice there as well.

Secondly, setting up a trading company puts you in the 30% tax bracket rather than the personal 48% bracket.

Thirdly, you can always get a larger margin loan. For example, in your case, if you get a margin loan for $1M and pay the 7% ($70,000)interest payment up front before the end of the tax year, you've just cut that $200K down to $130K and you have $1M to use to invest in good quality blue chips that will give you 100% franked dividends in the futuer etc

furthermore, there are some more esoteric things that can be done, ie trust deeds, personal DIY super set ups as director and employee of your companies, offshore accounts and entities, etc If set up properly, a non resident entity, can get away with paying only 10% tax.

You should start discussing them with a good accountant, one that specializes in share trading. Not many do.

A few hundred thousand should not be too difficult to deal with, and am sure if done correctly, you will be able to minimize it very well.


Good luck :) and may ALL be with you! hehehehe