Let’s face it.
Nothing is going to piss you off more than dumber people becoming wealthier than you, faster. That really sucks on many levels. Not just fairness. Or lazier people. Even if equally qualified people like you, are getting wealthier than you? Well, that’s just not on. Surely, you have wondered many times, “I should be able to do something about it!”
Well – Is there actually a way?
Just so we are clear here. We are talking about creating larger property portfolios & passive income generating assets (PIGA) – using tax dollars & other government incentives. E.g. Instead of your salary getting paid to the ATO, those dollars go towards creating assets that can generate you passive income.
With the new tax brackets (and many even under the old ones), quite a few people are able to become wealthier or even generate passive income this way. E.g. If you are a manager or in a supervisory position you will tend to be on a higher salary. Unfairly, you get taxed higher, in a higher tax bracket.
Why is it possible for you to generate wealth and/or passive income?
Governments have huge appetite for large & expensive projects. Politics forces them to complete them. For instance, there is a housing problem in Australia. So, if you build houses for renters, as everyone knows, they give you money back. Well, it’s not that simple. But you get what I am saying. So, just like that, there are other policies in place, that need funding. When you fund them, you get tax incentives and money back and so on. Because the government wants to encourage you to help them. Makes sense, right?
Obviously, not everything is going to work for everyone.
We have come up with an easy way to find out whether you can use tax structures & use your tax dollars to create “PIGA”- at a high level. Instead of paying taxes. This “evaluation tool” will give you a rough idea of whether or not you are likely to use your tax dollars and other incentives to buy property investments. Or even achieve passive income of 100k p.a. But to know for sure, you need to talk to us or your accountant.. (although if he/she has not mentioned passive income to you, maybe you should switch accountant?)
**All you have to do is answer these questions for yourself if you want to see if it’s likely**
So here you go:
- Do you make over $150k?
- Or Combined income as a couple at $150k e.g. you make $100k & your partner $50k?
- Are you presently able to save $1-2k/month?
- Are you comfortable with investment principles e.g. it cost money to make money?
- Are you open to learning new tax strategies that convert tax bills into passive income and/or wealth otherwise?
- Are you committed to starting quickly (before the opportunities vaporise)?
- Have you combined different tax structures e.g. SMSF, Hybrid trusts, CGT minimising devices & others together? (if the answer is ‘no’ here, we may be able to help you further)
- Have you just bought a few random shares and/or some property investment so far and/or don’t have an involved tax/wealth plan in place?
- Are all your funds tied into something already e.g. your primary residence? (if the answer is ‘no’ here, we may be able to help you further)