June has arrived and in the countdown to the end of the financial year, there are plenty of ways for you and your business to make the most of tax time.
Tax planning needs to be appropriate for your circumstances and shouldn't be left to the last minute because no decisions – or rushed decisions – can lead to the wrong outcome. Typically most of your tax planning will fall into a few categories:
These are the decisions every business should review annually and finalise before the end of financial year. Attending to your business's housekeeping
will ensure that it is set up properly for 2014.
Once you're confident that your business health and hygiene needs are dealt with, there are bigger tax planning opportunities to take into consideration
. R&D concessions, loss carry back rules, export market development grants and other time-sensitive opportunities need to be dealt with before June 30.
Your tax planning decisions will create a permanent benefit or will defer the tax liability to a later date
. Both can be valuable, however permanent savings will always have greater value. Choosing the right approach will ensure your tax planning doesn't leave you with problems later.
Cash flow is the life blood of business, so the choices you make at tax time will require you to either spend money, bring forward expenditure or defer income, all of which can have a significant cash flow impact
Planning your tax does mean that you may incur some risk based on the decisions you make. This could include tax, funding and business risks. Any tax benefits need to be measured against the benefit and assessed for those risks. It is important to not be too aggressive with your tax planning too, or you may find yourself on the wrong side of the ATO.
At this time of the financial year, advice can really benefit your business and personal tax position, setting you up for the coming financial new year. Please contact us on 02 9220 0770 or email us
to arrange an appointment.
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Last updated June 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.