With the end of financial year fast approaching, now is the time to review the financial performance of your business and to ensure everything that can be done prior to 30 June be completed to ensure the tax liability is kept to a minimum. Too often we leave planning until it’s too late, meaning there is not enough time to do anything significant to reduce your tax.
So here are some tax planning strategies that need to be considered right now:
- Prepay rent or interest and or other deductions now. This may either reduce your tax liability or increase your tax refunds
- Make extra contributions into your super fund
- Look at ways to reduce your home loan sooner. Therefore minimising your non-deductible interest and maximising your tax deductable investments
- Review whether a Self-Managed Super Fund (SMSF) is right for you. A SMSF could become your family’s wealth creation strategy and you could legally pay no tax on retirement
- Review your personal insurances, for example Income Protection insurance is tax deductible.
- Trust distribution minutes need to be prepared prior to 30 June. If not 46.5% tax could be payable on Trust profits.
For us to provide you with further strategies to minimise your tax bill we follow the below process;
- We will require your latest business financial information for the current financial year. We will also require an estimate of personal income received, or expected to be received this year, including salary and wages, interest, dividends, capital gains and rental income. In this review we will be able to determine the appropriate mix of salary and superannuation contributions which may be made this year.
- Based on the above information we will estimate the amount of income tax payable for the year so you have no ‘surprises’ come tax lodgement time. This will also allow you to budget to meet your tax obligations. In addition we will be able to provide an estimate of the amounts and the timing of tax instalment payments required next year.
- We will provide you with tax planning options along with an action plan
- All information required to be sent into our office as soon as possible
If you are unsure as to how this can be of benefit to you, please contact our office to discuss or make an appointment to discuss in more detail.
Submitted by: Stuart Coulthard – Director
