Are there tax advantages in investing in property and shares?
Australian shares Investing in directly listed Australian shares, or Australian share based managed funds, can provide high levels of tax efficiencies within your portfolio if selected wisely. ‘Franking Credits’ which are often attached to the dividends received from Australian shares (so as to avoid any ‘double taxation’ at both the company and share holder levels) can be specifically targeted as part of your investment strategy so as to minimise or offset any expected or potential taxation consequences. Property based managed funds Investing in property based managed funds (such as listed property trusts or direct property) can also be a great way of maximising tax efficiencies within your investment portfolio. This is because some of the income received from such investments is classified as ‘tax deferred income’ which essentially means that you do not have to pay tax on the earnings when received (instead, the amount of the tax deferred income is subtracted from the ‘cost base’ of
