Passive Income

Passive income blog with couple camping in Australian outback

Published on: 29 July, 2021 by Foster Lee

What exactly is “passive income”?

It is income that you are receiving whilst you sleep! Typically consisting of interest, trust distributions, dividends, rents, royalties and the like. It requires minimal labour to earn and maintain.

How do you achieve “passive income”?

Nothing comes easy and there are no real “Get Rich Quick” schemes. To start receiving passive income, there can be a great deal of effort, at the initial stage, to establish the strategy/platform. The hard yards must be initially done if you are to achieve a good level of consistent passive income ie first research what you want to get involved with. You might not succeed at first but you need to persevere if you believe in what you are investing.

What is the best thing to do with passive income?

  • Pay off/reduce bad and/or non-deductible debt eg private credit cards and home mortgage.
  • Purchase more public company shares to take advantage of more franking credits to further reduce your net tax liability or increase your net refund.
  • Save up for a deposit to purchase a home or investment property.
  • Go on a well-deserved holiday
  • Contribute more into super as a concessional contribution for an additional tax deduction.
  • Pursue your passion eg music, art, painting, etc etc


Find out more on our Business Advisory Services page or speak with Foster today.

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About Foster Lee

Foster is a specialist in aspects of income tax, from the individual to companies and family discretionary and/or unit trusts, bringing together those over thirty (30) years of experience.

He prides himself on quality work at a very value-based fee, meeting the needs of all his clients on a timely, accurate and meaningful basis to protect them. His easy, approachable manner and personalised attention makes all the difference and Foster’s experience in the management of people and their skills is an advantage to you. He genuinely has your interest at heart to maximise your financial/business goals and objectives.

Specially tailored fees can be structured to suit your personal needs and circumstances.

Book Appointment Now Foster Lee – local Cairns accountant