Tax planning - are you ready?
The end of financial year is only a matter of weeks away and as it nears many business owners are not as prepared as they should be. Too often business owners end up suffering because they have procrastinated and not made a positive decision to do something. If you leave your tax planning until early June, quite frankly there may not be enough time to do anything significant to legally reduce your tax. Don’t delay, it is imperative to get prepared. Not being prepared can literally cost you thousands.
Five key things that all business owners must consider right now to be financially prepared
1. Avoid the traps of Fringe Benefits Tax (learn how to save $$)
Not only can we can help you identify the types of expenses that attract FBT but can explain strategies that can be implemented now to minimise your exposure to Fringe Benefits Tax.
2. Action your general tax planning strategies
The concept behind tax planning is to try to legally minimise your Taxable position, this is often achieved when income is reduced or tax deductions are increased. We recommend strategies be actioned before 30 June to ensure the tax benefits can be utilised in the current financial year.
3. Fix your Tax Distribution Resolutions now
Distribution resolutions are required to be completed before year end (30 June) as it will determine who is to be assessed on the trusts taxable income. If your trust deed requires an earlier resolution then you should comply with the requirements (the date specified) in the deed.
4. Prepay interest for your investment loans or a capital protected share portfolio for big tax refunds
By prepaying interest before 30 June you will be entitled to claim a tax deduction for the interest in the current financial year.
5. Establish a Self-Managed Super Fund (SMSF) & make ityour family wealth vault
A SMSF is a super fund that you fully control and you are responsible for making all the investment choices in accordance with an Investment Strategy. Effective planning could mean that upon reaching 60 years of age, you could receive a pension from your SMSF and pay no tax on the pension income or on any capital gains made in the fund.