MAXIMISE OPPORTUNITIES FROM EFFECTIVE TAX PLANNING

The advent of the federal budget will bring a barrage of changes to the Australian taxation landscape.  Now is the perfect time to talk to your tax advisors and commence tax planning.  We understand that among other priorities such as running your business, spending time with your family and getting enough sleep, tax planning will be the least of your concerns.  Effective tax planning, however, is crucial for being prepared for the coming end of year.  Any good business person will understand that being prepared for the unexpected is just good business sense.

Here is why effective tax planning is a critical financial function of any successful business:

·         Being prepared for a tax bill and planning for it as part of cash flow management will save you grief because you can plan for it by budgeting for it.  Businesses that take advantage of the extended lodgement program by utilising tax agents should not know what their tax bill is many months after the end of the financial year!

·         The changing taxation landscape, while being confusing and costly from a compliance perspective, also affords opportunities to the prepared. For example, Australians under the age of 65 can now deduct personal superannuation contributions up to cap of $25,000 provided payment is made before 30 June 2018.

·         It is an opportune time to get your books up to date as well – review your results year to date, your debtors and creditors (get paid or reach arrangements with creditors) as well as bill for work you have completed.  It is also a good time to consider upgrading to cloud-based software to allow your accountant to see real time data.

·         Reduce tax risks such as ensuring payments to employees and directors (including superannuation) are up to date as well as ensuring related party loan accounts will not cause Division 7A headaches.  The advent of Single Touch Payroll (commencing 1 July 2018) means effective tax planning will be even more crucial.

Talk to us today about how we can assist you to maximise your opportunities with effective tax planning