Here is a prickly one – is it right to structure your affairs so that you pay less tax?  Paying less tax is an Australian (and probably global) obsession.  Evidenced by the actions of multinational corporations such as Apple and Google, and possibly envied by all those “normal” citizens without the budgets to pay for expensive advice, it’s something that many of us (most of us?) want to do.  In fact, as a financial planner, I’m often challeneged with people walking into my office announcing that the number one thing they want to achieve is to reduce their tax.

So, the likes of the Packer family, and I dare say many other families and wealthy individuals pay much less tax in percentage terms than us mere mortals and I think that’s fine.  As a business owner, I invest into the company, into our staff and into our local economy.  We provide jobs and stimulate the economy.  As a property investor, you are helping to build the nations stock of real estate for people to live, but that also helps the building industry and jobs.  As a share investor, your providing capital for companies to grow, expand and create jobs.  While people are so often focussed on the tax deduction side of things, what about where you’re putting your capital?  What is that providing?  How much jobs did the Packers create over all those years?

If you pay little or no tax and don’t contribute anything to society, then you’re not pulling your weight and you deserve to pay more.  But, if as a result of your contributions to the economy of risking capital, providing equity for jobs, taking risks to allow others to have a better life, then saving tax along the way is probably a LOT better than having the government spend the money on your behalf on half the jobs, half the investment and 100 times the paperwork.

Go forth and pay less tax, invest wisely, but give something back.  Make sure that overall, you’re leaving the world a better place in some way.