Learn Why It’s More Important Than Ever to Complete Tax Planning
The end of the financial year is fast approaching, but there is still time to act to minimise your tax.
Thanks to COVID-19 over the past year means things are a bit different! Most businesses have been focused on survival and managing their cash flow.
There have been lots of relief measures to deal with: Cash Flow Boost, JobKeeper, payroll tax refunds and deferrals, rental waivers and deferrals, deferred loan repayments, and various government grants.
Some businesses have relied heavily on these relief measures in order to scrape through, keep the doors open and keep people employed, whilst others have not only survived, but have managed to squirrel away the proceeds.
Additionally, many clients have been varying their PAYG income tax instalments downwards and in some cases reducing them to nil. They’re not thinking about taking any tax planning measures, but this could be a mistake!
It’s important to make sure you understand the tax consequences of these relief measures, and that you’re doing everything to minimise your tax, and here’s why.
Why Is Tax Planning So Important This Year?
It’s been a rough time for business owners. We’ve had to go into survival mode and from a tax point of view things have become very messy.
Business owners have had to cut costs and stand down team members in a bid to survive. Lots of business owners have also deferred tax payments and obtained refunds from tax already paid.
In a bid to help businesses, both state and federal government have also set up a number of relief measures, which have helped, but have also been confusing and complicated.
This has created a bit of a mess as to what your tax position is, and it’s hard to know how much tax you have to pay.
Also, some of the relief programs, like JobKeeper, is subject to tax. There’s a real danger that you could be sat on a large tax debt that you’re unaware of!
This is why it’s even more important to complete some pre-30th June tax planning.
This is also the ideal time to look at strategies to reduce your tax. Once 30th June has passed, it will be too late to utilise a lot of those strategies to minimise your tax.
What We Do as Part of the Pre-30 June Tax Planning Service
We do offer a Pre-30 June Tax Planning Service. The fees for this service start from $550 incl. GST, and we’ll be able to give you an upfront fixed quote for completing this work.
Click here to download our one-page brochure on the service.
To help you, this year we’ve updated our Pre-30th June Tax Planning Service to include the following: – may be say “which can be customised to include…” as there is no way we can do a full jobkeeper and rent relief review for $550…..
- A complete review to make sure that you have applied and received the correct JobKeeper payments for your team and the business owners, where relevant.
- A complete review to make sure that you have applied and received the correct rent relief from your landlord for your business premises, where relevant.
- A review of your BAS returns and Integrated Client Account to make sure that you have received your tax-free cash flow boosts of between $20,000 and $100,000, where relevant.
- A review of your situation to see if you are eligible to benefit from the increase in the instant asset write-off to $150,000 or the accelerated depreciation deductions on assets over $150,000, as the eligibility criteria and threshold have changed over time.
- A review of your situation to see if you are eligible to benefit from the temporary full expensing which allows a deduction for certain other new and second-hand depreciating assets, and for the balance of a small business pool.
- A review of your situation to make sure we’re utilising all the other latest tax minimisation strategies to help you legitimately minimise your tax.
- An estimate of your tax liability, reconciled to the payments you’ve made, and whether the June PAYG income tax instalments should be varied.
To find out more or to book your Pre-30th June Tax Planning Service, call 07 5649 7650.