Investopoly

Ep 382: Tax planning for PAYG employee – you need to think differently!

Nov 11, 2025
Discover why PAYG employees face unique tax challenges and how they can navigate the system for better outcomes. Explore strategies like super contributions and negative gearing as part of a long-term wealth plan, not just for short-term relief. Learn about maximizing tax-free benefits through the Transfer Balance Cap and using the main residence exemption wisely. Stuart offers practical advice on reallocating investments and managing cash flow, making tax planning about lifetime strategies instead of yearly gains.
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INSIGHT

PAYG Tax Position Is Structurally Limited

  • PAYG employees have little control over income timing or meaningful deductions compared with business owners.
  • That structural disadvantage means typical tax planning options are limited for PAYG earners.
ADVICE

Use Concessional Super To Save Tax

  • Use concessional super contributions to reduce taxable income when it fits your bracket.
  • Aim for the annual cap ($30k now, likely $32.5k) to capture a ~32% tax saving if under $250k adjusted income.
ADVICE

Carry Forward Unused Super Caps

  • Use unused concessional caps carry-forward if your super balance is under $500k to shelter lumpy income.
  • Delay or accelerate contributions to match years with higher taxable events like bonuses or CGT.
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