Tax planning and tax minimisation is a very important part of our role as accountants. We recognise the fact that business owners and individuals want to reduce their tax liability within the framework of the Australian taxation laws and to achieve the best possible financial outcome you need to plan in advance. We encourage you to schedule a meeting in the last quarter of each financial year to assess your options. Below is a list of strategies that highlight some year end tax planning opportunities:
Year End Stock Take / Work in Progress
If applicable, you need to prepare a detailed Stocktake and/or Work in Progress listing as at 30 June. Review your listing and write-off any obsolete or worthless stock items.
Write-off Bad Debts
Review your Trade Debtors listing and write off all Bad Debts prior to 30 June. Prepare a minute of a Directors’ meeting, listing each Bad Debt, as evidence that these amounts were actually written off prior to year-end.
Small Business Concessions - Prepayments
'Small Business Concession' taxpayers can make prepayments (up to 12 months) on expenses (e.g. Loan Interest, Rent, subscriptions) before 30 June and obtain a full tax deduction in that financial year.
Ensure that the Trustee Resolutions are prepared and signed before 30 June for all Discretionary (Family) Trusts. Please contact us for more information about these resolutions.
Some general tax planning opportunities include maximising allowable tax deductions in this financial year including:
- paying directors’ fees and any staff bonuses before June 30
- pooling depreciating assets
- scrapping of depreciating assets
- writing off bad debts pre June 30
- pre-paying expenses like interest, subscriptions, rent etc.
- pay superannuation before June 30
Each year we put together a comprehensive tax planning guide that you can access via the Dropdown menu in the "Our Resources" tab.
If you're a committed and ambitious business owner looking to accelerate your business success we invite you to book a FREE, one hour introductory consultation to discuss your business needs. You'll get practical business, tax, marketing and financial advice designed to help you build your business and grow your wealth. To book a time, contact us today on (03) 9509 0188 or complete your details in the box at the top of this page.