RTO Tax Planning

With the financial year-end looming, Registered Training Organisations (RTOs) must strategise and optimise their tax positions.

In this blog post, I delve into tax planning actionable tips and insights to help RTOs prepare their year-end accounts effectively, ultimately minimising tax liabilities and capitalising on opportunities for wealth accumulation.

RTO Tax Planning

Let's break down the actionable tips:

1. Keeping Records Up to Date: Ensuring that your bookkeeping file is reconciled and up to date is crucial for measuring your financial position accurately.

2. Prepayment of Expenses: Consider prepaying expenses such as rent, subscriptions, and other business costs before the financial year-end to avail a tax deduction in the current financial year.

3. Superannuation Payments: Paying June quarter super for your employees before June 30th allows you to claim a deduction in the current financial year.

4. Review and Write Off Bad Debts: Assess your trade receivables and write off any irrecoverable amounts before June 30th to avoid including them in your income for the year.

5. Deferred Income: Delay issuing invoices for services rendered until after June 30th to defer the income to the next financial year.

6. Estimating Personal Income: Estimate your personal income as a shareholder/director to determine how and when to receive income from the business, such as wages or dividends.

7. Maximise Super Contributions: Consider maximising superannuation contributions (up to the deductible cap of $27,500) before June 30th to build a strong retirement fund.

8. Insurance Coverage: Ensure you have adequate personal insurance coverage, including life, TPD, and income protection, for financial security in case of unexpected events.

These are some of the key strategies you may consider implementing to optimise your tax position before the end of the financial year. Discussing these tips with your accountant to tailor them to your specific circumstances and needs is advisable. If you have any further questions, feel free to reach out for assistance or clarification.

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Disclaimer: This is general advice only and does not consider your financial circumstances, needs and objectives. Before deciding, you should assess your circumstances or seek advice from your accountant.