One of the biggest challenges for business is cashflow.
The Australian Tax Office (ATO) does not make this any easier with the due dates of taxes.
The biggest challenge I see is that at the end of each quarter you need to have saved enough for your:
- Quarterly tax installments
- PAYG withholding for your staff
Having all these tax payments due at the same time can make it challenging for business. Often it is the business owner who reduces their wages and superannuation contributions to meet their tax obligations.
To add to this, the Government is changing the rules as to how much can be contributed to Superannuation. This means that planning with cashflow and contributions for your retirement is becoming more important.
For the 2016/2017 financial year the limits of contributions your business can make and claim a tax deduction for are as follows:
- $30,000 if you’re under 50
- $35,000 if you’re over 50
These limits from the 1st July 2017 are proposed to drop to $25,000.
Rather than making lump sum contributions at the end of the year to your Superannuation Fund why not start now and make monthly contributions?
With the use of Superstream you could also make your employee contributions monthly.
If you need assistance with your cashflow and/or managing your tax and employee obligations please do not hesitate to contact Renee or myself.