Tax planning is an important activity that should be done throughout the year, to not only ensure that you are aware of (and prepared for) your financial obligations, but also to ensure that you are not paying any more tax than you have to!
How you ever stopped to think about what you could do with tax saved?
- Reduce your home loan
- Top up your super
- Have a holiday
- Deposit for an investment property
- Upgrade your car
Everyone wants to increase their tax refund (or reduce their tax payable), so we’ve put together some guides applicable to both businesses and individuals to help you understand some of the common strategies that you can use to minimise your tax for the 2018 Financial Year.
Please note: the following guidelines are for general information only and are considered correct at the time of publishing. See your professional advisor to get specific advice before taking any action.
Click on the Screenshot to the right, to download your FREE Business Tax Minimisation Planning Guide
Just some of the great content within on how to reduce your business tax, include:
IS YOUR BUSINESS A “SMALL BUSINESS” ENTITY?
Small businesses can access a range of tax concessions from the ATO. To qualify as a “Small Business Entity”, the business must have an aggregated turnover (your annual turnover plus the annual turnover of any business connected / affiliated with you) of less than $10 million and be operating a business for all or part of the 2018 year.
REDUCTION IN COMPANY TAX RATES FOR SMALL BUSINESSES
The company tax rate for businesses with less than $10 million turnover is 27.5%.
If you use a Trust structure, one strategy is to allocate profits to a “Bucket Company” and cap your tax at 27.5% for the 2018 year. Note that this company must have business operations to qualify for the reduced company tax rate.
INSTANT DEDUCTION FOR ASSETS LESS THAN $20,000
If your business qualifies as a Small Business Entity, assets purchased prior to 30 June are eligible for special tax concessions, which can see depreciating assets valued at less than $20,000 immediately deductible in full, and assets valued at more than $20,000 depreciated at a faster rate.
Minimise Your Personal Tax
Now’s the time to review what strategies you can use to minimise your tax before 30 June 2018, and some of the useful information you will learn about in our guide includes:
KEY SUPERANNUATION CHANGES
While you might not be flush with cash now and able to put large amounts into superannuation, it’s important that you are aware of what is possible to maximise your super balance and possibly reduce your tax at the same time.
THE NEW CONCESSIONAL CONTRIBUTION CAP (CC) OF $25,000 THAT EVERYONE CAN ACCESS
Ordinarily, self-employed individuals and those who earn their income primarily from passive sources make super contributions close to the end of the financial year and claim a tax deduction. However, this is the first financial year that individuals who are employees may also use this strategy.
TAX DEDUCTIBLE INSURANCE PREMIUMS
Possibly your greatest financial asset is your ability to earn an income. Income Protection Insurance generally replaces up to 75% of your salary if you are unable to work due to sickness or an accident, and is normally tax deductible. Plus you get the benefit of protecting your family’s lifestyle if you cannot work due to sickness or an accident
Obtaining professional advice can not only help you get a better understanding of your own particular circumstances, but also assist you in making the right decision.
Business Wise has a highly trained team to assist you with all aspects of Tax Minimisation, including establishing the right business structure. We also have many useful resources that may assist you in avoiding the pitfalls that many business owners fall into.
To find out more about how you can benefit from using our “Tax Planning Advisory Service”, or if there is any way we can help you or your business, we would welcome the opportunity to be of assistance.
Contact us now for a FREE, no obligation 30 Minute consultation.