Plan to minimise tax
By Renee Ballinger
In these uncertain times, one thing is for sure – taxes. At this time of year it is a good time to not only reflect on the financial year to date, but review your business income and expenses, consider revenue and outgoings for the remainder of the year and make an action plan to implement any tax minimisation strategies required prior to 30 June.
With ever changing tax legislation and rules, it is best to engage a professional and the benefits generally outweigh the investment. An accountant or business adviser can provide a range of strategies that can assist to minimise tax and create wealth, in the best way for your specific circumstances - a “one size fits all” is not the approach to take!
The lead-up to the end of financial year is also a key time to review your business structure and consider the strategic direction of your business for the year ahead.
Forecasting upcoming purchases or sales of assets, including assessing the cashflow requirements and any associated tax implications, can make a big difference on your year-end tax bill. The instant asset write off threshold has recently been increased to $150,000 for eligible businesses through to the end of the 2019/20 financial year (before it is expected to revert back to $1,000 from 1 July 2020), so timing is of particular importance to ensure you are maximising the benefits.
While it is important for businesses to assess their potential tax positions prior to the end of financial year, it can be equally beneficial for individual taxpayers, as considering your personal tax position and making the most of available financial strategies and deductions now could have the benefit of increasing your refund at tax time.
As always, the professional team at UHY Haines Norton are here to help. Please contact us on 07 4972 1300 or info@uhyhncq.com.au for all your tax, accounting and business needs.