By Joe Smith
Due to the COVID 19 pandemic, the government put several economic stimulus measures in place to assist Australian individuals and business owners. This resulted in the most significant changes to tax legislation in recent history on top of some changes that were already planned for this financial year.
Whether it is the Cash Flow Boost which is not taxable, or Jobkeeper which is taxable, almost every business in Australia will be impacted by these. Adding to this the increases in the caps for the immediate write off for assets purchased, a reduction in the company tax rate to 26% and tax loss carry back provisions, there has never been a more important year for business owners to speak to their accountant regarding tax planning.
There are many strategies that can be put in place when we provide tax planning however, it is essential that everyone has their own specific advice as some strategies may not be useful for some business owners or individuals.
Some of the things that we consider when carrying out tax planning are maximising your superannuation contributions if your tax rate is higher than the 15% that you would pay in your superannuation account. Bringing forward any tax deductible expenses to this financial year, such as vehicle repairs or maintenance, is another simple strategy.
Deferring taxable income until after 30 June or making sure that you sign the contract for the sale of an investment property on 1 July are some other things that we consider. However if you are making a loss on an investment property it may be worth bringing this into the current financial year if you have another property that you will make a capital gain on!
The recent changes reinforce the need to seek expert advice regarding tax planning this year. A good accountant or business adviser should also keep you informed of a
If you would like a no obligation chat with us regarding tax planning, please call or email us at UHY Haines Norton on 07 4972 1300 or email info@uhyhncq.com.au