With the passing of March, we also turn our attention to tax planning strategies to ensure that you are paying no more tax than you have to. There are a whole range of strategies available. The ones that are relevant for you or your business will depend upon your circumstances and available cashflow.
Some of the classics still apply such as:
- Delay invoicing when getting close to 30 June and invoice in the new financial year
- Bring forward to June any purchases or expenses that you may incur in early July
- If you’re a business, make sure that your staff superannuation is paid prior to 30 June
- Small business entities can still claim an immediate write off for assets less than $20,000 purchased before 30 June 2018. If considering such a purchase in the next few months consider bringing it forward
- If you have a rental property make large losses, consider a PAYG variation for the next year. This will increase your take home pay each pay period
- Ensure you have a building depreciation schedule to maximise depreciation expenses, but speak to us before doing so if it’s a recent purchase
There are also some exciting new developments (well exciting to us accountants) for this year that we will be more than happy to discuss with you over the next few months.
Remember however, that tax planning always takes a second seat to business cashflow and working capital needs. If you are considering any of the above, come and see us and let us determine the impact on your cashflow and the tax benefits that you may actually achieve before you incur any additional expenditure.