| Rule |
Description |
Possible exemptions |
| 1 |
Borrow money up until max LVR set by risk profile |
1-9 |
| 2 |
Invest in the assets with the highest after-tax return |
10-12 |
| 3 |
Invest in entity with lowest tax bracket when not using leverage |
13 |
| 4 |
Invest in entity with highest tax bracket when investment runs at a net investment loss |
13-14 |
| 5 |
If after tax return is the same, invest in asset that has access to the highest leverage |
1-9,15 |
| 6 |
Sell any assets that have a higher after-tax return available elsewhere |
11,17,18 |
| 7 |
Direct excess cashflow to concessional superannuation contributions before paying off deductible debt |
19-23 |
| 8 |
Direct excess cashflow to concessional superannuation contributions before paying off non-deductible debt |
23-25 |
| 9 |
Own a principal residence rather than rent |
7,26,27 |
| 10 |
Roll money to pension account when eligible |
28,29 |
| 11 |
Prioritise lump sum over pension payments pre-60 |
30-32 |
| 12 |
Don’t roll account based pension (under old rules), to a new account based pension |
33-35 |
| 13 |
Purchase insurance bond if the expected tax on earnings is lower than all other available tax rates |
36-39 |
| 14 |
Aged Care – Pay the maximum RAD instead of incurring a DAP fee |
40-42 |
| 15 |
Pay off non-deductible debt before deductible debt |
43 |
| 16 |
If both debts have the same tax deductibility, then the debt with the highest ongoing costs should be paid off faster |
- |
| 17 |
Gifting should only incur if it results in an increased Centrelink entitlement |
44 |
| 18 |
Bad debt should never go off |
45 |
| 19 |
Non-deductible debt should be paid from person in the higher tax bracket first |
- |
| 20 |
End savings should be at the minimum amount required (based on savings buffer) |
20,46 |
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