Tax Planning Strategies
As a small business, your tax planning for 2019should already be underway. Remember that your tax is retrospective and what you do today and for the rest of the 2019 financial year impacts on your business and personal tax payable in May 2020.
At Bizally, our goal is to help you understand your taxation obligations. We also advise you on the choices you have (and there are many) to reduce your taxation burden. Our aim is to make sure that you are working within the constraints of the Australian taxation systems while taking every opportunity to reduce your tax liability. Put simply, the less you spend on tax, the more you have to grow your business and personal wealth.
Regular tax minimisation strategy meetings
The best way to reduce your taxation liability is to have a plan and to ‘check in’ regularly to make sure you are on track. Bizally can help you develop a tax minimisation strategy that is unique to your personal situation and goals. We can then arrange quarterly meetings to discuss your progress and, when necessary, adjust your strategy to fit changing circumstances. Below are some of the taxation considerations, which may be appropriate for your small business.
Small Business Concessions – Prepayments
‘Small Business Concession’ taxpayers are allowed to make up to 12 months prepayments on expenses, such as rent, loan interest and subscriptions before 30 June 2016, and obtain a full tax deduction this financial year.
Write-off your bad debts
Writing off bad debts is a simple tax minimisation strategy that most small businesses don’t take advantage of. Simply review all of your trade debtors and create a listing to write off all of these bad debts before 30 June 2019. It’s imperative that you keep records of these transactions as evidence that these amounts were actually written off prior to the end of 2016.
Maximise your Deductible Superannuation Contributions
In many circumstance it is important that you and your family maximise your concessional (tax deductable) superannuation contributions each year. The a many ways that this can be depending on your circumstances and Bizally ensures that each of our clients are fully utilising this valuable tax concession each year.
It’s important that your trustee resolutions are prepared and signed before 30 June 2016, for all ‘Discretionary’ (Family) Trusts. If you are unsure about how to do this, call Bizally today to arrange a discussion.
Additional tax planning strategies for 2019
In addition to the tax minimisation considerations outlined above, Bizally can provide you with specific opportunities based on your particular business type of personal financial requirements. Call today to arrange a discussion. Remember, the earlier you start, the more chance you have of minimizing your tax burden.