Tax Effective Investing

One of the largest sectors in the Australian and global economy is Agribusiness, which is just one of the many different examples of Tax Effective Investments.

Investing in the Agribusiness sector can possibly provide numerous benefits including up front tax deductions. Our Oculus consultants are able to guide you to finding an investment product that is best suited to meet your required needs, that provides you with maximum benefits.

A little background about agriculture…
With a number of reports and studies indicating that the Agribusiness sector is one of the strongest sectors in the Australian economy for e.g.

  • Statistics taken from the Australian Bureau of Statistics have shown that the production of Agriculture for 2003-2004 has risen by 12%, to $36.6 Billion annually.
  • The Australian Farm Institute has also released information indicating that the Farm Dependent Economy contributed 12% of GDP, which is more than any other single sector in the Australian economy.
  • The Australian Agribusiness Group, conducted a study using information taken from 23 years of data (provided by Standard and Poor and the Australian Bureau of Agricultural and Resource Economics), determined that the returns from Agribusiness are similar to the returns from ASX shares, with minimal volatility in returns.

It is evident that the addition of Agribusiness in a portfolio will provide positive benefits to the portfolio as a whole.

Understanding the tax implications of investing…
Developing your wealth is influenced by the investment strategy that you choose. By understanding the importance of how you can reach optimal returns will help with the preparation of your financial plan. Some of the most standard types of tax effective investments include:

Superannuation
Taxed at only 15% as opposed to a marginal rate, Superannuation will provide impressive returns.

Equity investments
Provides tax advantages and credits for the tax that Australian companies have already paid.

Borrowing to invest
If you have an investment that is successfully producing an income, it is important to know that  the majority of the costs of owning it are tax deductible. The interest paid on the loan is also tax deductible.


To see how an Oculus advisor can assist you with your Effective Tax Investments, contact us on 07 5536 3755.