Tax deductions on your investment properties
Other things that you might like to look at from a cash flow perspective is your tax deduction on your investment properties. If your investment property through depreciation and perhaps negativity on a cash flow basis, means that that property is actually negative for cash flow from a tax perspective, and you get a cash flow benefit from it, you lodge a form with the Tax Office which is called Form 15-15. This basically says instead of giving you a tax refund at the end of the year, you pay less tax every week and you’ll have that extra cash flow to be able to afford those properties.
Sometimes this can be lodged on a business. It may be lodged on a rental property that might have a negative cash flow. It can be lodged for all sorts of reasons where your income that’s coming in and being taxed on a weekly basis is not your accurate income. Your accurate income is going to be something less than that and you can lodge a form that says this is what it’s going to be, so they can give you the tax deduction on a week by week basis instead of on a yearend basis. So that gives you extra cash flow along the way as well.