Tax Planning Tips
With the end of the financial year approaching quickly, NOW is the time to discuss with us the actions you can take before 30 June to reduce your tax and grow your wealth.
Here are the tips you can use to minimise your business tax.
Prepay Expenses: As a small business, you can prepay up to 12 months of your expenses, including rent, subscriptions, training material, stationery or similar items. If you will incur these expenses within the next few months, why not actually bring them forward to the current financial year and get a deduction for it.
Pay the June Quarter Super: Pay the June quarter super for trainers and other staff before the end of the financial year and claim a deduction for it. Ensure that super is paid and received by the employee’s super fund before 30th June.
Maximise your own super contributions: As part of your retirement plan, don’t forget to contribute as much as you can before 30 June. The deductible contribution cap for the current year is $25,000. You may also be eligible to make an extra contribution accessing the unused cap from previous years.
Use a Bucket Company: Depending upon your business structure or if a trust owns the shares of the trading entity, you may wish to distribute the profit to a bucket company to cap the tax at 26% or 30%. The cash in the bucket company can be used to invest in shares, property or to lend to other entities at a specific interest rate.
Talk to us today before the 30 June 2021 deadline for assistance to reduce your tax. Imagine what you could do with your tax savings.
(This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making a decision, you should assess your own circumstances or seek advice from your accountant).