As tax time approaches, now is the time to start getting your finances in order and implementing strategies to minimise your tax for this year. These are some of the things business should be thinking about in the lead up to the end of financial year;
Do you have a family trust?
If not - why not? Every business structure should contain a family trust, it’s that simple. This is the biggest tax saving device you will ever have. Go to www.qbaa.com.au for more information.
Trust Distributions must be resolved by 30 June.This means your accountant should be reviewing your figures, estimating profit to year end and any tax adjustments. You should then be given proactive advice on minimising tax by making appropriate distributions to beneficiaries.And don’t forget the kids (especially those expensive adult kids that are in uni – tax time is the when they suddenly become a lot less expensive!). Your accountant will assist you to prepare the necessary minutes.These cannot be done at tax time and MUST be done by 30 June or else you might be hit with a 49% tax bill!
Have you made bigger profits than usual? You might be able to significantly minimise tax by setting up a new corporate beneficiary before 30 June.
Has your company made loans to yourself or your family trust in prior years? If so, it’s more than likely you are required to make a minimum yearly repayment by 30 June. Don’t get caught out – if your company makes profits, it’s NOT okay for it to just lend money to you or your family trust without a loan agreement, interest charges, and minimum yearly repayments. EVEN if you have used that money for tax deductible investments. If you have been told otherwise – be on the safe side and get a second opinion.
Tips and Tricks. There are lots of other things you can do pre 30 June to save you at tax time, ranging from stocking up the stationery cupboard to simply when you pay the June Quarter’s superannuation payment. If your accountant hasn’t contacted you recently give Quantum Business and Accounting a call for some free advice – don’t miss out!
If you would like some tax planning tips, or a health-check on your business structure and tax returns, call Beshara on 0402 769 459 to book your FREE one hour, strictly confidential, no-obligation review of your business. Beshara has 14 years of experience specialising in business taxation and as a partner in one of the largest accounting firms outside of the Brisbane CBD. Beshara was placed in the top 5 per cent of Chartered Accountants in Australia. Beshara now operates a boutique accounting firm, with a focus on creating meaningful client relationships, delivering strong quality of service and offering the best possible solutions.