David Koch delivers three tactics to help Australians beat the taxman

AUSTRALIA boasts one of the highest personal tax rates in the developed world, but these simple tips will help you hold on to as much of your cash as possible.

MONEYSAVERHQ .. Woman looking at bills and receipts on floor

AUSTRALIA still boasts one of the highest corporate and personal tax rates in the developed world, with our corporate rate of 30 per cent and top personal rate of 45 per cent comfortably above the OECD averages of 25.3 per cent and 41.5 per cent.

That’s tough if you’re wearing the top rate, and should be a reminder to all wage earners to start planning their taxes a little better. The sooner you get started, the better off you’ll be.

Get cracking today with these three tactics.

1. Top-up your super

If you have a bonus in the barrel or some spare income each month, think about asking your boss to contribute it to super instead of sticking it in your regular bank account.

If you’re under 50 years of age you can make before-tax super contributions of up to $25,000 a year and pay just 15 per cent contributions tax, instead of your regular rate. If you’re over 50 you can contribute up to $50,000.

The tax saved boosts your super balance instead of going to the taxman.

2. Time income carefully

Towards the end of a financial year it’s worth looking at the income you expect to receive over the next few months and see where some might be delayed into the new financial year.

This will delay paying the tax and is a great strategy if you’re likely to earn less in the coming financial year and will therefore be on a lower marginal tax rate.

3. Offset capitals gains with losses

Half your profits from selling shares or investment properties will be charged capital gains tax at your marginal tax rate, but losses made on these kinds of investments can be used to offset profits and cut your tax bill.

So if you look like you’ll make some money on the sale of an investment, consider selling some of your disasters during the same financial year.

■ Follow David Koch on Twitter at https://twitter.com/kochie_online