We’re not wanting to alarm you but 30 June is just around the corner! However, by actively reviewing your financial status and implementing tax planning process we can maximise your position with the ATO and minimise the tax you pay. Making tax time that bit easier.
So what is tax planning?
It is review process that is designed to identify the optimal tax planning strategies to suit your circumstances and ensure they are implemented before 30 June 2016. Our aim is for you to pay the least amount of tax you can.
Key Benefits of Annual Tax Planning Review:
- Avoid unpleasant surprises on your tax bill
- Maximise your business’ eligible expense deductions
- Take advantage of potential tax concessions for your industry/business type
- Maximise the tax effectiveness of your superannuation contributions
- Be clear on how much tax you need to pay and when you need to pay it
- Review your business structure for optimum tax positions and asset protection
- Ensure Division 7A loan minimum repayments are made to avoid unexpected tax consequences
- Identify the best way to reward owners (i.e. wages, director fees, dividends or profit distributions)
What does the review include?
Firstly, we review your financial position and current circumstances for the year. We then make projections for the whole year’s profit and come up with strategies to reduce your tax.
Example
Bob and Sarah’s restaurant has made a profit of $220,000. They will share the profit equally and receive $110,000 each. It was recommended that they contribute $30,000 to super to reduce their tax bill.
Tax savings
Tax on super contribution 15% = $4,500 tax
Tax if no contribution to super 39% = $11,700 tax
Savings: $7,200
Tax Planning Action Plan and Timeframe
To ensure you achieve the best possible tax outcome before the EOFY, we provide you with an action plan and timeline. This will assist you in achieving the maximum tax saving possible.
