As my SEO consultancy has expanded, I’ve been looking at ways to begin reducing my taxable income and expand my office space for the business.
I came across some NRAS properties which were perfect for what I was looking for in the way of having an investment property that could be used as office space for the business. The idea is that we rent this property out to the consulting business – at a relatively high rental rate, which is then paid directly into the trust that we operate.
This actually reduces the overall taxable income of the business, which means we pay less tax on the profits that the business makes.
And the other benefit, is that the rent is getting paid directly into my own account which means we get to get beneath the 30% tax threshold!
How Did It Work?
Well we went through a company called Property Road (www.propertyroadsa.com.au) who were able to give us access to their stock of these national rental affordability scheme properties – which allowed us to get a good return on this property investment whilst still maintaining the property as a business premises.
How Much Did I Save?
Well I think over the period of 10 years, I’ll end up saving around 50k in taxation and other other rental expenses that I would have paid at our old business premises – making this a very worthwhile exercise!
Where to from here?
The best part about this NRAS property is that it is quite large which means I can easily rent out other rooms to other businesses which will help to further increase my revenue, and lower the overall cost of owning this investment property in the longer term.
It’s a very exciting time and I’m really looking forward to seeing how the business grows in this new office space. I’m extremely happy with the end result!