Margin lending can offer a range of highly effective tax advantages including:
-
tax deductions for loan interest paid
interest can be pre-paid up to 12 months in advance to maximise your tax deductions in the current financial year
borrowing against your existing portfolio can give you access to cash without incurring capital gains tax liability which would arise from the sale of your investment
Australian shares are often franked, so you may receive franking credits which could help reduce your overall amount of tax payable
taking advantage of company, trust and third party security structures may assist in tax planning