It is an essential process for all small to medium business owners, as a good tax planning session can save you:
And who doesn’t want any of those?
This year, however, tax planning is absolutely vital. The government recently passed several new tax reforms that can directly affect business owners and their ability to minimise tax come 30 June.
So, why should you give a crap about tax planning?
Knowledge is Power: Understand your Tax Position
Don’t wait for a nasty surprise come tax time, working with your accountant well in advance allows you to prepare & budget.
Show Me the Money: Saves you Money
Hands up if you’d like to pay more tax than you need to? No takers?
Legally minimising tax requires sitting down with your accountant to ensure you are utilising all available opportunities and strategies to reduce the amount of tax you are paying.
Your Life Easier: Let the experts handle it
Working with an expert adviser will ensure you have financial piece of mind and more time to focus on what you do best; your business.
2017’s New Opportunities…
With the government passing some new tax reforms, things have changed from last year, here a few points we think it’s important for small business owners to know:
Increase in Turnover Threshold
The threshold for qualifying as a small business has increased to $10 million. This means, concessions you may have previously missed out on are available to you; if your turnover is between $2 million and $10 million.
Decrease in Company Tax Rate
The company tax rate for small business entities has now decreased to 27.5% for the 2017 financial year. Structuring is super important if you are to access these benefits.
A number of super reforms have been introduced as of 1 July 2017; including a reduction in the amount that can be contributed to superannuation.
Employee Super Payments
All employee superannuation must be paid prior to 30 June to be deductible; so make sure any accrued super is paid prior to 30 June.
Are you one of the nice guys that pay staff bonuses? If yes; ensure you accrue the bonuses payable prior to 30 June to get the deduction this financial year. NB. The actual bonus can be paid post 30 June.
There are numerous other opportunities available to you and your business so giving yourself enough time to sit down and discuss with an expert is essential.
So, what should you do now?
First step, get all your accounting records up to date.
Next, organise a time to sit down and chat with your adviser:
And the sooner the better. Some of these new reforms are time sensitive, so the more time you give yourself can be the difference between a reduced tax bill or not. And remember, once 30 June ticks over it may be too late to take advantage of all available opportunities.
Work with an advisor; put a tax minisation action plan in place and start taking action prior to 30 June.
Need a little extra help? Fill out the form below and a SEIVA adviser will give you a call to discuss possible tax reduction strategies for this financial year.