Firstly, what does tax planning actually mean?

As per the ATO website“You have the right to arrange your financial affairs to keep your tax to a minimum – this is often referred to as tax planning, or tax-effective investing.”

However, what is key is that tax planning should be performed with caution, any tax efficiency strategies need to be implemented lawfully.

A tax advisor can provide helpful guidance in interpreting tax law. They can provide guidance on understanding how tax works in relation to your investment, so that you don’t pay more tax than you need to. Tax planning may mean reducing your taxable income by negatively gearing an investment property or through salary sacrifice arrangement, or increasing your claimable deductions by donating to a charity.