1.Longer term investing
Non-superannuation investments held for a period greater than one year will generally qualify for the 50% Capital Gains Tax discount.

2. Invest wisely
Australian shares can be tax-effective (fully-franked dividends) as a pre-retirement investment vehicle. Pension earnings in pension products are not taxed. Retirees under 60 can roll their super into pension products and avoid paying lump sum tax, and may also be eligible for a tax offset. Retirees over 60 can receive their pension payments tax free.

3. Borrowing to invest
Funding investments through borrowed money can achieve valuable tax deductions on loan costs and interest.

4. Insurance within super funds
Premiums paid on income protection insurance are tax deductible – a win-win situation!

5.Income splitting
Couples with different tax rates can choose to hold income-producing assets (ie shares) in the name of the lower-paid spouse - attracting a lower rate of marginal tax. This strategy however may impact rebates and family tax benefits and incur transfer costs.

6.Dividend imputation credits
Dividends paid by Australian companies may carry credits of up to 30%. Fully-franked dividends are advantageous for all shareholders.

7.Capital Gains Tax (CGT)
Defer this by holding long term investments that are preferably high in quality and growth potential. Frequent buying and selling can erode savings due to transaction costs and CGT.

8. Deductions and rebates
The costs incurred to earn an income, such as loan, investment property maintenance, insurance etc. are generally tax deductible. Rebates are also available in many forms – for dependents, low income earners, self-funded retirees etc.

9. Superannuation
Superannuation is one of the most tax-effective savings vehicles. Earnings are taxed at a maximum of 15% while CGT is capped at 10% for assets held for at least 12 months. Through salary sacrifice it is possible to reduce taxable income. Making contributions on behalf of a low-income earning spouse can result in a tax offset.

10. Start early
By setting an investment strategy early the benefits from compounding interest may be greater on your superannuation benefit, and the savings achieved through effectively managing your tax situation.