Tax Planning – how to minimise your tax!

As we move towards the end of the financial year it is time to start planning ways to minimise your tax. Now is also a good time to review your year to date financial performance, and to start planning for the next twelve months, whether that be that increasing income, targeting new customers/clients, adding staff, reducing costs etc.

Below is a number of ways that you can minimise your tax for this financial year – take a look and consider the options suitable to your specific circumstances. We look forward to speaking with you over tax time to ensure the best results are achieved for you.

Minimise your tax by;

  • Prepay expenses / bring forward deductions
  • Repairs/maintenance – have work completed before year end
  • Travel – book (& pay if necessary) before year end
  • * Rent / Interest – prepay
  • Defer invoicing
  • Unearned income – exclude any income that you have received but not yet earned
  • Interest on investment loans
  • Pay employee related expenses, these are only deductible if paid by year end, including
  • Employee superannuation
  • Employee bonuses / commissions
  • Superannuation maximise contributions. Current limits of $30k & $35k (if over 50), are reducing to $25k in the next financial year
  • Stock
  • Write off obsolete stock
  • Value – write down slow moving stock to ‘net realisable value’
  • Delay converting finished goods into sales/debtors
  • Bad debts – review receivables/debtors and write off bad debts
  • Assets
  • $20k Asset write off – * Small business entities – last chance to take advantage of the $20k immediate expensing of each asset purchased under $20k, up until 30 June 2017.
  • Write off any obsolete assets
  • Purchase any assets prior to 30 June, add them to your Asset Pool to depreciate
  • Capital Gains Tax
  • Consider small business Capital Gains Tax (CGT) concessions that may be available to apply against the disposal of business assets.

Note* SBE – only available to Small Business Entities, that is businesses with a turnover of less than $2 million.

Article written by Cranbourne Partner, Dave Sheahan.

 

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