The following case study relates to a real life example of how we helped Nancy, a 51 year old professional achieve the following results in under 5 years.

$28,635+

Tax and interest savings

$976,333

New investable value of fund

$528,333

Net value of super from $126,000 four years ago

Whilst this is an actual example, all personal details have been changed, for confidentiality purposes.

Our Client

We met Nancy under 5 years ago. She was seeking an accountant who could help her prepare her tax return and reduce the amount of tax she was paying.

Her tax return was simple. She earned employment income of $120,000 per annum, received interest income on her savings, and had very few work related expenses.

She had a $389,500 home loan, $70,000 in savings and approximately $126,000 in superannuation.

The problems before we got involved

  • Nancy wasn’t claiming every deduction she was entitled to and was costing herself thousands of dollars in potential tax refunds over the years
  • She was paying in excess of $37,591 in income tax each year, and had no tax plan in place to reduce the amount of tax she pays
  • Nancy was losing approximately 39% of interest earned from her savings account in income tax
  • Her home loan was not structured tax effectively, and as a result was paying more interest than she had to which resulted in Nancy repaying less principal off her home loan
  • At 51 years of age, Nancy had a limited working timeframe and insufficient assets to provide her with a quality lifestyle when she retires from the workforce

How Tax Effective helped Nancy

  • We prepared Nancy’s tax returns and identified thousands of dollars in tax deductions that she didn’t realise she was entitled to claim
  • We moved Nancy’s savings into a tax-exempt, higher interest savings account
  • We tax effectively restructured her home loan to enable Nancy to save thousands of dollars in interest repayments and reduce her home loan much faster - without having to make additional loan repayments
  • We established a self-managed super fund with a limited recourse borrowing arrangement and helped Nancy purchase a residential investment property in Sydney’s inner west, considerably increasing the investable value of her super

The result so far

Since adopting our recommendations under 3 years ago, Nancy has achieved the following results:

  • Nancy has achieved a risk-free interest and tax savings in excess of $38,635
  • By purchasing a property inside her super, we successfully increased the investable value of her super from $126,000 to $976,333
  • With a much higher investable value achieved by leveraging her super, Nancy increased her net super balance from $126,000 to $528,333

Post becoming a client

We meet with Nancy a minimum of once a year to prepare her tax returns and measure her progress towards her financial and life goals, helping her identify any tax planning or investment opportunities that may be available to her.

Tax Effective Private

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