The ATO thanks you for your donation (but you won’t).

A client said to me last week, “James, I feel like I’m working hard… but not really getting ahead.”

So I asked her a simple question:

“How many months each year do you work for free?”

She laughed, until I showed her the number.

Almost everyone in Australia has a WFF: Work For Free number.

And once you see yours, it’s hard to unsee.

Here’s what it looks like:

So if you’re earning $200,000, that’s 3.4 months a year.

Basically January to mid-April, working for free.

The ATO might not send thank-you cards, but for many of us we’re funding half the country before we fund our own goals.

But here’s the good news:

The higher your income, the more powerful your tax strategy can become.

Because if you’re in the top tax bracket, every dollar you invest or spend strategically could put 45 cents straight back in your pocket.

That’s nearly half your investment funded by the ATO, now that’s a return.

Here’s how we help clients lower their “Work For Free” number:

1. Get strategic with deductions: Don’t just claim what’s obvious. Think about timing expenses, structuring smarter and a EOFY Tax Health Check (before June 30). Plus work with an accountant!

2. Use the right investment vehicles: Negative gearing, debt recycling, trusts/companies and superannuation all have their place when done well.

3. Plan long-term: The smart ones don’t just save tax this year, they build wealth in a way that compounds their advantage every year after.

There’s a quote I love:

“Don’t work harder for your money, make your money work smarter for you.”

If you’ve ever looked at your payslip/tax return and thought, “Where does it all go?” it’s time to find out.

Contact us with WFF and we’ll walk you through how to shrink your “work for free” months and put more back in your pocket.

Because if you’re going to work that hard, you might as well make sure it’s working for you and not just for the tax office.

7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised through Cobalt AdvisersPty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative of Australian Finance GroupLtd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.