Five Tips to Minimise Your Tax

Tax time is approaching! For some of you, this will bring a sense of dread. A reminder of your income you have foregone over the last 12 months to keep our society functioning. For our clients, we’ve implemented numerous strategies to legally minimise their tax so they have more money available to invest as they see fit:

Investment Bonds

Investment bonds have returned to favour of late and their earnings don’t need to appear on your tax return.

Earnings from the investments in the bond are excluded from personal income because the bond providers pay tax at 30% internally – meaning there is nothing for you to declare on your tax return. However, to receive the full tax benefit, you must leave your money in the bond for a decade.

Bonds can be suitable for; younger investors on tax rates above 30%, executives under the age of 60 who may have maxed out their super contributions or retired investors who can no longer contribute to superannuation.

Discretionary Family Trust

A trust is an investment structure that allows assets to be controlled by one or more people on behalf of the beneficiaries. A discretionary trust means that the trustee can nominate which of the beneficiaries receives the income and capital from the trust. This can be a good technique for high-income earners in the top tax bracket, as they can distribute trust income to family members on lower tax rates. You can even distribute income to beneficiaries with no other income and utilise their tax-free threshold.

There are some compliance costs you will encounter along the way and all decisions made by the trustee need to be properly documented, but these costs may be deductible depending on your situation.

An Investment Company

An investment company can serve to keep funds accessible and “liquid” outside of superannuation. However, you will not be able to access the 50% capital gains tax discount so it is may be more suitable for income producing assets to be held in a company rather than capital growth assets.

Assets such as managed funds, shares, direct property can be purchased in the name of the investment company (as opposed to personal names) depending on your risk profile and portfolio needs. When income is distributed, the recipient pays tax at their marginal tax rate less 30% company tax. This works in similarly to a discretionary trust in that you may wish to distribute income to shareholders on lower income tax rates – for example, someone that has only worked part-time over the year.

Whilst there are additional costs with setting up and maintaining a company, the benefits are the ability to choose the timing of the distribution to suit the individual and minimise tax payable.

Mortgage Offset Account

Placing your savings in a mortgage offset account has two major benefits for your wealth management. Say you have sold an asset and wish to hold cash for a short period of time; you may be tempted to place the proceeds into a high-interest savings account with returns between 1-2.5% currently. You will of course pay tax on the interest in this account.

Instead, you could invest the money in your mortgage offset account to reduce the amount of interest payable on your home loan. With variable base rates between 3.5-5% currently, you would save this amount in interest and also not need to pay any tax for the benefit!

After-Tax Superannuation Contributions

Most people may still benefit from pre-tax (concessional) contributions, also known as salary sacrifice despite recent cap changes. Given these contributions are subject to a maximum tax of 15% inside super as opposed to post-tax contributions which are subject to tax at your marginal rates prior to contribution; which can be above 47% for high income earners.

The key contrast remains for those investment assets held within your own name for more than 12 months. Inside super capital gains are assessed at 10% and earnings taxed at 15%; whereas outside super, capital gains are assessed at up to 50% (capital growth) and investment earnings (income) are again assessed at your marginal tax rate.

How We Can Help

Five Tips to Minimise Your Tax

It is important to get expert advice from Endorphin Wealth Management regarding tax effectiveness to maximise savings and boost your wealth management and asset management.

For an obligation free discussion, call our financial advisor in Melbourne on 03 9190 8964, or email us at

The information, concepts and ideas used in this article are provided for general information only and should not be taken as constituting professional advice from Endorphin Wealth Management or Lifespan Financial Planning.
You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances. We cannot be held liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly or by use of this article.

Congratulations to Phillip Richards – Money Management Awards 2019

We’re delighted to announce that Phillip Richards has been named as a finalist for both ‘Financial Planner of the Year’ and ‘Young Achiever of the Year’ at the 2019 Money Management Awards.

From The Money Management website:


All the finalists for the Money Management Fund Manager of the Year awards have been announced, recognising the best and brightest in the financial services industry.

The ultimate winners would be those who not only provided clients with excellent results and service, but also went above and beyond in what they offered their workplaces, communities and the industry.


An outstanding achievement and a great testament to all the hard work Phillip has been putting in building the business and servicing his clients.

Phillip and the team at Endorphin Wealth are over the moon and a few of the team will be heading up to Sydney for the awards night on 16 May.

For an obligation free conversation about your financial future, contact Phillip on 0477 004 455 or

Endorphin Wealth Management – New Look Team (April 2019)

Endorphin Wealth Management2019 is off to a great start! We’ve seen excellent growth in the accounts of our clients, and we’ve also seen growth in the team here at Endorphin!
Andrew, Gianni and Taylor have all been wonderful additions to our team. They’re enabling us to provide a much higher level of service to our clients and are providing even more energy to our office.
We’re certainly glad that they’re with us and look forward to watching their careers develop with the practice over the coming years.
Their profiles have been updated on our Our Team page if you would like to learn more about them.



Gianni Valenti


Taylor Spelt


Comprehensive analytics and research

We invest a great deal of time and effort researching the best retirement strategies for our clients. We have developed a number of systems to manage and track the marketplace.
The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.
For an obligation free conversation about your financial future, please contact us on 03 9070 8211 or at

2019/20 Federal Budget Highlights

With a bit over a month to go until the Federal Election, it’s unsurprising that the announcements centred on election-friendly promises such as tax cuts and increased funding to healthcare, aged care services and infrastructure.
Federal Budget 2

The key take-outs to be aware of include:
  • • immediate tax cuts for low-to-middle income earners to help ease the cost of living, and lowering the 32.5% tax rate to 30% from 1 July 2024
    • the ability for people aged 65 – 66 to contribute to super without meeting the work test requirements from 1 July 2020
    • an increase to the age limit for spouse contributions, from 69 to 74 from 1 July 2020
    • a significant increase to funding for health and aged care services.

Finally, it’s important to remember that the Budget announcements are still only proposals at this stage. Each of the proposals must be passed by Parliament before they’re legislated.
The full Budget papers are available at and the Treasury ministers’ media releases are available at Highlights of relevance to our clients include:

1. Personal Income Tax Cuts

The Government has announced it will extend the personal income tax cuts that were announced in last year’s Federal Budget. This is proposed to be achieved as follows:

From 1 July 2018 to 30 June 2022

increase of the Low and Middle Income Tax Offset (LMITO) from a maximum of $530 to $1,080 ($2,160 for dual income families) and this can be claimed in your 2018/2019 tax return.

From 1 July 2022
    • • the upper threshold for the 19% tax bracket will increase from $41,000 to $45,000, and
      • the LITO maximum amount will increase from $645 to $700. The increased LITO will be withdrawn at a rate of 5 cents per dollar between taxable incomes of $37,500 and $45,000.
      • LITO will then be withdrawn at a rate of 1.5 cents per dollar between taxable incomes of $45,000 and $66,667.
From 1 July 2024

the 32.5% marginal tax rate will be reduced to 30%. The 37% tax bracket will also be abolished as per the Government’s already legislated plan.

Federal Budget 1
2. Increasing the Medicare Levy thresholds (Effective 01.07.2018)

This will be increased slightly, resulting in less Medicare Levy payable

3. Small & Medium Business – Increased access to the instant asset write-off (Effective 02.04.19 – 30.06.2020)

This means businesses with a turnover of less than $5 million (small and medium) can immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from Budget night to 30 June 2020.
The $30,000 threshold applies on a per asset basis. This means eligible businesses can instantly write off multiple assets.

Federal Budget 3

4. Superannuation

No work test for voluntary contributions extended to age 66 (Effective 01.07.2020)
The Government will amend superannuation contribution rules to allow people aged 65 and 66 to make voluntary contributions to superannuation without meeting the work test.
Under current legislation, for a client aged 65-74 to be eligible to a make a voluntary
superannuation contribution they must have already satisfied the work test during the financial year the contribution is made.

The work test is satisfied where a client has been gainfully employed for 40 hours in a period of 30 consecutive days during the financial year. Alternatively, from 1 July 2019 clients may instead satisfy the work test exemption to make voluntary contributions.

 Bring-forward rule extended to age 66 (Effective 01.07.2020)
People age under 67 at any time during a financial year will be able to trigger the non-concessional bring-forward rule. Currently, clients must be under age 65 at any time during a financial year to trigger the bring-forward rule. The bring forward rule allows client to make up to three years’ worth of non-concessional contributions, which are capped at $100,000 a year, to their superannuation fund in a single year.

5. Social Security

Energy Assistance Payment (Effective 30.06.2019)
Social security recipients will receive a once-off Energy Assistance Payment by the end of the current financial year. The payment will be $75 for singles and $125 for couples combined and will be exempt from income tax.

6. Aged Care

Increased funding for aged care
The Government will provide $724.8 million over five years from 2018-19 to fund improvements in residential and home care services.

Extension of Commonwealth Home Support Programme
The Government will provide $5.9 billion to extend the Commonwealth Home Support Programme (CHSP) funding arrangements.

The CHSP contributes to essential home support services, such as meals (Meals on Wheels), personal care, nursing, domestic assistance, home maintenance, and community transport, to assist older people to keep living independently in their own home.

Comprehensive analytics and research

We invest a great deal of time and effort researching the best tax effective investment strategies for our clients. We have developed a number of systems to manage and track the marketplace.
The investment landscape always evolves and it is more important than ever to consider your investments and superannuation funds carefully. We pride ourselves on being experts in researching opportunities, investments and strategies that fit in with your retirement goals. We want, our clients to get on with enjoying their life rather than worrying about money.
For an obligation free conversation about your financial future, please contact us on 03 9190 8964 or at

Introducing – Smart Home Deposit

We’re very excited to announce another offering from the team at Endorphin Wealth Management – Smart Home Deposit. SHD is a low cost, fully diversified and online investment solution designed to help first home buyers save smarter and make the dream of owning their first home more achievable.

The SHD team are based here in the office with us and they held a launch party a few weeks ago to start spreading the word about their services.

From the SHD blog:

What makes us rocket past the competition? It all begins with our mission…

We’re here to help first home buyers save smarter and get into their home sooner

Saving smart doesn’t mean going on a ‘money diet’, leaving you with the burden to make sacrifices that come with living the life you want. It’s your life so enjoy it!

We relieve the burden of choice by setting up automated direct deposits that go straight from your bank in to your SHD account (like moving brussel sprouts from the plate straight in to your stomach – all the benefits with no sickly taste in your mouth).

Smart Home Deposit
We also aim to maximise the amount that you can save by keeping our costs low and easy to read. What you see is what you get. We also want our customers to know that they’re not alone on this journey, so we’ve created a financial coaching program that’s included for free (talk about bang for your buck!). But that’s not all. In 2019 we’re planning to shoot for the moon…

Our 2019 New Year’s Resolution

We want to bring people together on this exciting savings journey. They need to know they’re not alone. By the end of this year, ‘Smart Home Crusaders’ private online Facebook group will be an important medium for customers to stay engaged and motivated to save smarter for their home deposit goals. We are all on this adventure together!

Smart Home Deposit
But once you reach your deposit goal… what next? There’s more than meets the eye when it comes to buying your first home. Setting up your mortgage, dealing with settlement agents, finding the best-yet-affordable home insurance and even figuring out how to pay the bills if you can’t work anymore – too often young couples choose whatever is most convenient and often it breaks the bank in the long term.

But don’t stress, we at Smart Home Deposit are here to cater to the individual needs of each of our customers and can organise home loan, insurance, and agents for you.

We’ve shown you how we’re going to help you move in, now it’s time to show you the team that’s working hard to get you there.

Meet the team helping you reach settlement sooner

Smart Home Deposit

– Meet the team: (from left to right) Jack, Gianni, Phillip and Taylor

We’re a highly engaged and enthusiastic team which draws from a range of different backgrounds and professional experiences. We have a dreamy vision of helping every Australian get on the property ladder.


We want to reduce people’s financial anxiety and help them achieve success- whatever that means to them – by empowering them to optimise their finances.

We believe using data and technology, we can truly re-imagine how people save smarter for their home.

That means we give them the tools to not only understand what’s happening with their money, but how that affects what’s going on around them and their life decisions.

Sound good? We think so!

Hop aboard. Together, we can make home ownership a reality for all Australians.