BREAK IT DOWN: On a $1 million investment property, this adds up to tax saving of at least $11,315 every year.

And on top of the tax benefits, you’ve effectively used the bank’s money to acquire a $1 million dollar asset.

So long as you choose a good property, this will deliver you upside on the value of your investment into the future.

Use tax structures

Investing is important if you want to get ahead, but you don’t need to own your investments.

You can choose to own investments through an investment bond, family trust, investment company, or even your super fund.

When you own investments through these other ‘tax structures’, the income and gains you generate isn’t automatically included in your own personal income, and isn’t taxed at marginal tax rates.

BREAK IT DOWN: Each tax structure has its own tax rates and rules that apply.

For example, an investment bond pays tax on dividend income at a maximum rate of 30 per cent, and when you hold investments under an investment bond for 10 years or more you don’t pay capital gains tax.

This compares to personal marginal tax rates of up to 47 per cent, meaning you’re potentially saving at least 17 per cent in tax.

Based on $100,000 of annual investment income, this means further potential tax savings of $17,000 each year.

Get expert advice

Wealthy people understand the importance of being across all the rules and how to use them to their advantage, and the upside of getting this right.

This is why wealthy people make sure they have the best experts in their corner to help them save tax and make smarter moves with their money.

The right move at the wrong time is the wrong move, and timing is everything with strategy a close second.

If you want to make maximum progress in the shortest amount of time you need to have a rock solid strategy and game plan.

The wrap

There’s a huge opportunity for most people to be smarter with their tax, keep more of your income, and use this to get ahead faster without just sacrificing more or saving harder.

Each of the strategies I’ve outlined above can and do work every day, if you know how to use them in a way that’s consistent with where your money is at today, and where you want to take things.

But it won’t just happen on its own, like anything important you have to take action to make it happen. But the results are worth it.

Ben Nash is a finance expert commentator, podcaster, financial adviser and founder of Pivot Wealth. Ben’s new book, Virgin Millionaire; the step-by-step guide to your first million and beyond is out now on Amazon | Audiobook.

If you want some help with your money and investing, you can book a call with Pivot Wealth here.

Disclaimer: The information contained in this article is general in nature and does not take into account your personal objectives, financial situation or needs. Therefore, you should consider whether the information is appropriate to your circumstances before acting on it, and where appropriate, seek professional advice from a finance professional.