Insights- Tax Planning – the only way to ensure the best outcome for tax minimisation
Nobody wants to pay more tax than they need to- so why would you not plan ahead to ensure you are legitimately minimising the amount that ends up in the ATO’s pocket.
What does tax planning involve?
We review your business income and expenses to date and use those figures along with our discussions with you to prepare an estimate of where we think you will be sitting at the end of the financial year.
We also look at any other personal income and expenses that you have and we work out how much tax you are likely to pay overall for the year if you do nothing.
Once we have this figure we then work with you to identify opportunities to help minimise tax for the current year. These strategies might be focused on the short term by bring forward spending etc but we also look for opportunities to build a more long term strategy.
What strategies might be involved?
There a number of options and each will depend on your specific situation but some of the things that might be considered include:
-Prepayment of certain expenses.
-Bring forward capital purchases
-Payment of dividends
-Optimising Trust distributions
-Understanding superannuation caps available to you.
-Repayment of loans
-Updating log books
Why is tax Planning important?
Once 30 June has passed – any opportunity to make changes or implement plans is over – and you are stuck with the past and the tax bill that comes with it.
Planning early also allows you to budget for any resulting tax bill well in advance.
How Can Alto Help?
Alto can help by reviewing your position and preparing a detailed schedule to help ensure your tax position is minimised legally. We also help with the implementation process to tick off each of the required steps before the 30 June deadline.
Author: Donna Bruce