The end of the financial year is just around the corner. It’s a great time to assess your expected taxable income for the current financial year, by projecting your income and expenses.
We believe it doesn’t make sense to spend money just to receive a tax deduction. A business should focus primarily on reinvesting money into their business by purchasing assets that will generate future income. The tax benefits of spending should be your secondary consideration.
Here are some of our generic tax planning tips:
- Reviewing and postponing some of your invoices for the current tax year.
- Reviewing debtors and writing off unrecoverable debts.
- Review superannuation contributions.
- Take advantage of any new tax legislation, for example, the small business instant write- off.
- Prepaying expenses such as insurance, rent, and subscriptions.
- Review of tax structure and utilising small business structure rollovers.
The benefits of a tailored tax plan are:
- A tax plan ensures that you take advantage of any new or existing government incentives for small businesses or households.
- Tax planning can assist with wealth-creation activities.
- Tax planning will help reduce the chances of a surprise tax bill.
- A tax plan can assist significantly with cash flow planning.
As the late Kerry Packer said “I pay whatever tax I am required to pay under the law, not a penny more, not a penny less... if anybody in this country doesn't minimise their tax they want their heads read because as a government I can tell you you're not spending it that well that we should be donating extra”.
If you have any further questions about tax planning, please contact us on 1300 942 230.
Melbourne Tax Advisory