23 May 2011
It often seems attractive to have permanent savings as part of your tax and planning, however, you need to have cash in the bank to effect the strategies but without compromising the cash flow demands of a business or investment opportunities. In other words, don’t cut off your nose to spite your face just to get that tax break.
Such cash demanding strategies include:
- Maximising your superannuation contributions;
- Donations; and
- Tax schemes such as primary production and capital intensive high risk investments
We’ll look at some other opportunities before year end but this gives you something to start working on. Keep your cash flow position in mind. You need to work out the cash flow effect of any decisions you might take.
The more available cash you have, the easier it will be to make all of this work. So, perhaps now is the time to start following up your debtors and chasing some of those old accounts.
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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.