Why Tax Planning Matters More Than You Think: Don’t Ignore It!
Tax planning season is here – yes, it’s that time of year already!
Tax planning is an essential aspect of financial management for businesses in Australia. In essence its about taking your financial future into your hands – it’s an opportunity to manage your business’s profit, cashflow and ultimately your tax obligations.
With the discretionary dollar being squeezed and small business finding it harder than ever to make a profit, it’s time to take things into your own hands and minimise what you pay in tax. During tax planning we forecast full year profits and provide various options as to outcomes based on your goals and business, our experience and the legislation work within. We execute a plan in consultation with you so you can minimise your business’s tax liabilities while maximising after-tax profits.
For those business groups who operate with one or more Trusts, being able to execute an effective trust resolution with respect to the distributions of that trust for the year is nigh on impossible without some predictability of family income and profits. June 30 marks the last day trustees have to set the trust resolutions down or risk tax being paid at the highest marginal rate.
- Maximising Tax Efficiency: By engaging in tax planning, individuals and businesses can identify opportunities to legally minimize their tax liabilities. This may involve taking advantage of tax deductions, credits, and incentives that can help reduce the overall tax burden.
- Cash Flow Management: Effective tax planning can help improve cash flow by ensuring that tax obligations are managed efficiently throughout the year. With strategic planning for tax payments and optimising timing of income and expenses, individuals and businesses can better manage their financial resources.
- Compliance and Risk Management: Tax planning helps ensure compliance with relevant tax laws and regulations, reducing the risk of penalties or audits. By staying informed about tax obligations and planning proactively, individuals and businesses can mitigate potential risks and maintain good standing with tax authorities.
If you would like to know more about tax planning or discuss the relevance to your personal circumstances please call one of our Advisors today 08 8172 1444