Tax-Aware Investment Strategy

Maximising After-Tax Returns Through Intelligent Structuring

For high-net-worth investors, the difference between pre-tax and after-tax investment returns can be substantial. Tax-aware investing is not about tax avoidance — it is about making intelligent investment decisions that consider the tax consequences of each action, within the full bounds of applicable law. At Virex, tax awareness is integrated into every aspect of our investment process.

Capital Gains Tax Optimisation

We structure portfolios and manage rebalancing activities with careful attention to CGT implications. This includes timing asset disposals to maximise the 50% CGT discount for assets held more than 12 months, harvesting capital losses to offset gains, and sequencing rebalancing activities to minimise unnecessary CGT events. For clients with cross-border CGT obligations, we coordinate with local tax advisors to ensure compliance.

Franking Credit Strategy

For Australian resident investors, franking credits represent a significant component of total investment returns from Australian equities. We actively manage Australian equity allocations to maximise the utilisation of franking credits, taking into account each client's individual tax position and the interaction with other income sources.

Tax-Loss Harvesting

We systematically identify opportunities to realise capital losses that can be used to offset capital gains elsewhere in the portfolio, without compromising the portfolio's strategic positioning. This process is managed carefully to avoid wash-sale issues and to ensure that tax-loss harvesting decisions are always subordinate to sound investment principles.

Entity Structure Coordination

The entity through which investments are held — individual, company, trust, superannuation fund — has significant tax implications. We work with your tax advisors to ensure that investment assets are held in the most tax-efficient structure available, taking into account your overall financial position, estate planning objectives, and applicable tax laws.

Important Limitations

Tax-Aware Investment Strategy services provided by Virex Wealth Management are investment-focused and do not constitute tax advice. We work in coordination with qualified tax professionals, but clients must obtain independent tax advice from a registered tax agent or tax lawyer before implementing any tax-related strategy. Tax laws change frequently and the tax consequences of any investment decision depend on individual circumstances.