The 2023 financial year will soon draw to a close, meaning it is time you start thinking about your tax planning strategies and end of financial year position.

Why is investing time in tax planning strategies important?

Tax Planning helps to bring confidence that you have mitigated your tax obligations effectively and in doing so, maximised your after-tax wealth position, leaving you with more resources to help you achieve your financial success. This is even more relevant with cost of living and borrowing expenses dramatically increasing over the previous 12 months with every personal & business dollar becoming more valuable.

Is tax planning relevant to you?

Regardless of the type of income you earn, if you lodge a tax return and receive a tax assessment, tax planning is something you should consider.

The Australian Taxation Office has moved its focus to the considerable small business ATO debt that accrued throughout the COVID-19 period, understanding your future tax timeline of what taxes are to be paid, when and by whom is critical to your personal and business cashflows and if unchecked can be a cause of significant financial distress.

What does tax planning involve?

The starting position is to understand the year to date performance and forecasting this out for the remainder of the year to estimate what profits/taxable income levels you are working with.  This may be for an individual, a single entity, a family group structure or a large corporate entity.  The concepts and the importance are the same for all.

We identify any one-off or unusual events that have taken place during the year that can have a taxation impact and factor these into your forecast position.  Such events could include the disposal or purchase of a property, changes in trading conditions or structures, new business opportunities as well as planning for personal events such as retirement and building of superannuation.

Then the fun starts!  Once we have the forecast position established, we work with you to consider what options are available to reduce, mitigate or defer tax commitments.  We consider the tax impacts of the various strategies and then forecast a revised and improved tax position to work through scenarios to help you identify what you would like to implement.

Strategies we consider include:

•    Ensuring superannuation contributions are paid by year end
•    Consider further super contributions subject to caps and in line with wealth      creation plans
•   Write off bad debts before year end
•   Consider scrapping stock and plan and equipment of nil value before year end
•   Consider eligibility to immediate asset write off concessions
•   Maximise prepayments subject to the prepayment rules

Contact Supertax on info@mysupertax.com.auto understand your business cashflow and tax planning.

W:www.mysupertax.com.au

M: +61 424 413 808