At Azure Group we pride ourselves on tax planning. In the last 2 years we have helped over 300 businesses save millions of dollars in taxes. There is no time like the present to start focusing on tax planning and this is particularly true before June 30!
Here are our top 10 reasons why tax planning as a formal exercise is crucial for you and your business:
1. Tax Concessions
There are a number of tax concessions available and often business owners aren’t aware of them. There are often some restraints around how and when you can claim them, so forward planning is required to make the most of these. Discussing the options with your accountant in advance can make sure that you plan your activities in a way that could take advantage of these concessions.
Our experienced tax accountants can ensure that you know what you can claim. Tax planning can also mean that you claim things at the right time. For instance if you are concerned about the current financial year and what you are going to owe, you could pre pay some expenses to claim in this financial year.
3. Tax Owed
It is important to understand and prepare for your tax liabilities. How much do you need to pay and when do you need to pay it. Getting a schedule of expected tax debt for the year ahead is essential in planning your cashflow requirements in your business.
Superannuation can be claimed as a business expense, but there are some guidelines to this around when it has to be paid in order to be claimed. Getting this wrong can cost your business significant amounts of money and get you in hot water with the ATO. For the business owner we can also plan to make sure you put the most appropriate amount into your personal super based on your age, income and potential tax liability.
5. Tax Savings
We all like tax savings and we can help you structure your business to help maximise the tax savings.
We only like good surprises, so we work really hard to make sure that there are no unpleasant surprises when it comes to your tax.
7. Business Review
It is imperative to have a regular business review to ensure that you have the best business structure to provide you with the best tax position and to maintain your asset protection. We know that your personal life and assets can change so we want to make sure that you are reviewing your structure regularly to ensure you always have the best protection.
8. Federal Budget
Each year the Federal Budget makes changes to small business incentives and taxes. As such reviewing this in line with your business can make sure you are gaining all the advantages from the Federal Government.
Related: 2019 Budget update
9. Loan Repayments
There are some penalties and unexpected tax consequences if minimum loan repayments aren’t made under Division 7A.
10. Owner Payments
We want owners to be rewarded for their efforts, but there are a number of ways this can be done. Depending on your personal circumstances we can assess whether this is best done through wages, director fees, dividends or profit distributions (or a combination of these).
There is still time to be having this conversation so make sure you get in contact with us today.