• Shiv Jaidka

Tax Planning Tips

With the end of the financial year approaching quickly, NOW is time to review your strategies to minimise your tax.

With ATO's recent attack on trust distributions, income estimation and tax planning are more important than ever. You may have an opportunity to take action before 30 June to reduce your tax and grow your wealth. The possible actions include:

  • Pay the June Quarter Super: Pay the June quarter super for your staff before the end of the financial year and claim a deduction for this. Ensure that super is paid and received by the employee's super fund before 30 June

  • 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 bring them forward to the current financial year and get a deduction for this

  • Maximise your 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 $27,500. You may also be eligible to make an extra contribution by accessing the unused cap from previous years

  • Use a Bucket Company: Depending upon your business structure or if a trust owns the trading company's shares, you may wish to distribute the profit to a bucket company to cap the tax at 25% or 30%. The cash in the bucket company can invest in shares, property or lend to other entities at a specific interest rate.

Talk to us before the 30 June deadline for assistance in reducing your tax.

(This is general advice only and does not consider your financial circumstances, needs and objectives. Before making a decision, you should assess your circumstances or seek advice from your accountant).