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Overview

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There are many ways Australians are able to use their personal savings in order to get ahead financially. Once you've worked out what your objectives are, and what you hope to achieve by investing your money, you can begin to look at the options available for putting your money to work.

Of course, one of the most popular ways is through investing in property. While owning a block of land has become something of a national pastime – second only to sport – owning a second or third property which returns a rental income is something many of us aspire to. But it's important to understand the tax implications of owning rental properties – as well as the deductions available – to make the investment really worthwhile for your bank balance. Read more about property investment, here.

Not everyone has the spare money lying around to buy property with. Many people have smaller amounts, perfect for investing in financial products such as shares. Building up a share portfolio is an exciting investment option, but one which also has tax implications. Find out about owning shares and the tax implications of doing so, here.

There is another type of share investor – one who actually trades shares as a business, for immediate profits, as opposed to the long-term share investor, who's in it for the long-term gains. The Tax Office is concerned about the potential problems that could arise as a result of confusion between the two terms trader and investor – and is concentrating its efforts on this area. This is because tax treatment is differnet, depending on which one you are. To understand where you stand, read 'Investor or Trader?'

When you make money from the disposal of your investment asset – be it a rental property, shares, or even artwork  –  the difference between what you receive for it and what you previously paid for it is called a 'capital gain'. Capital gains on many assets are subject to normal income tax by way of the capital gains tax (CGT) regime – which is a potentially complex area. Find out more about capital gains tax here.

Investing – be it in property or shares – isn't limited to Australia's borders. If you're interested in overseas investments and their tax implications, read 'Investing Overseas' here.

Last reviewed 9/08/2012