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Tax Planning
Every transaction presents tax planning opportunities and challenges.
By the time the end of the financial year has arrived, it’s actually too late to make significant changes to your net tax outcome. However, by working with an accountant throughout the year – one who understands your business and financials – you’ll benefit from effective strategies that can minimise your overall tax payable while growing your net worth.
At Carbon, we understand the importance of effective tax planning for businesses. Paying taxes is a legal obligation, but that doesn’t mean you have to pay more than what’s necessary. We work closely with our clients to develop tax strategies that help them reduce their tax liability and maximise their after-tax profits. Our team of expert tax accountants has years of experience and expertise in helping businesses achieve their financial goals through effective tax planning.
Tax planning is an important aspect of running a successful business. Carbon Tax & Accounting offers comprehensive tax planning services to help businesses reduce their tax liability and maximise after-tax profits. Our team of experienced tax professionals works closely with businesses to identify tax-saving opportunities and develop effective tax strategies that align with their goals and objectives. These strategies must be maintained, reassessed, and monitored throughout your business journey as circumstances, tax legislation, and compliance responsibilities change yearly.
Tax accountants play a critical role in helping businesses achieve financial success. At Carbon, our team of experienced tax professionals provides a wide range of tax services to businesses of all sizes. From tax planning and compliance to audit and assurance, we offer expert guidance and support to help businesses navigate the complexities of the tax system and achieve their financial goals.
Expert Advice and Strategies for Small Business
Small businesses face unique tax challenges, and effective tax planning is essential to their success. Our tax professionals have extensive experience working with small businesses and can provide expert advice and strategies to help them minimise their tax liability and maximise after-tax profits. We work closely with small businesses to develop a tailored tax plan that meets their specific needs and helps them achieve their financial goals.
Tax planning allows you to:
- Estimate the amount of income tax payable for the current financial year.
- Estimate the amounts and timing of tax instalments and plan accordingly.
- Implement strategies to minimise tax payable while growing your net wealth.
- Consider your business goals and profitability to track your success.
- Discuss and review your superannuation, and its role in your tax strategy.
- Ensure your business and investment structures fit your plans.
Webinar – Strategies for Success: Tax Planning and Property
Missed our recent webinar on enhancing tax planning and property investment strategies? Watch the recording online! Led by Accounting & Tax Partner Wayne French, with insights from Lachlan Delahunty (Performance Property) and Lucia La Bella (NAB), this session offers key strategies for optimising your financial portfolio.
Tax Planning & StrategyBenefits
On top of minimising your tax position, tax planning also gives you an opportunity to budget for the next 12 months of tax payments. In some cases, this can be substantial.
Tax planning enables you to look forward and budget accordingly for your tax liabilities for the coming 12 months, as well as being able to make decisions that could alter or reduce your tax liability. Since tax planning typically happens in March, you have 12 months to budget for the actual tax bill that will be due as a consequence of your end of year tax result.
Frequently Asked Questions
Tax planning in Australia refers to the process of analysing a financial situation or plan from a tax perspective, with the aim of ensuring tax efficiency. The goal of tax planning is to ensure that all elements of a financial plan work together in the most tax-efficient manner possible. Tax planning is arguably the most important thing that a business owner should be working with their accountant on. Tax planning assists you through effective strategies than could reduce your overall tax payable while growing your net worth.
Tax planning is crucial in Australia for several reasons, impacting both individuals and businesses in significant ways. By effectively planning for taxes, you can ensure that you are meeting legal obligations while optimising your financial strategy to support your businesss goals. Thorough tax planning can minimise your tax position, as well as allow you to budget for the next 12 months of tax payments. For some businesses, this can be substantial and having the foresight is an incredibly powerful tool. It is essential for businesses to engage in tax planning as it can help them save money and improve their cash flow.
Tax planning can help Australian businesses with:
- Cash flow management: Improves your business’ cash flow by ensuring that tax payments are predictable and spread out. This avoids large, unexpected tax bills that can disrupt financial stability.
- More working capital: With lower tax liabilities, more cash remains in the business, which can be used for day-to-day operations, to invest in growth opportunities or to build a financial cushion for future needs.
- Lower taxes: By strategically timing income and expenses, claiming all allowable deductions, and utilizing tax credits, tax planning helps minimize your tax liability. This ensures you don’t pay more tax than necessary.
- Strategic investment: With a clear understanding of tax implications, businesses can make more informed decisions about investments, acquisitions and other strategic moves.
- Legal compliance: Proper tax planning ensures that your business adheres to all tax laws and regulations, avoiding legal issues and penalties from the ATO.
- Efficient use of resources: By saving on taxes, your business can allocate resources more efficiently, perhaps hiring new staff, expanding marketing efforts or increasing production.
Tax saving investments in Australia include shares, property, superannuation, and managed funds. These investments offer various tax benefits, such as capital gains tax concessions and franking credits.
Tax planning season kicks off in February. This gives you enough time to sit down with your accountant to ensure you are on track with your financial and personal goals before the end of the financial year (30 June). Often tax planning meetings will generate discussion and allow your accountant to be proactive to reduce taxes for many years into the future, not just the current financial year.
Tax minimisation strategies for businesses include tax effective structuring, maximising deductions, claiming all eligible tax credits, and utilising tax concessions and exemptions.
You can optimise your business tax in Australia by:
- Claiming all deducible expenses
- Taking advantage of asset depreciation
- Restructuring your business in the most tax-effective manner
- Making pre-tax superannuation contributions
- Looking into grants and other small business concessions
- Deferring income where possible to the next financial year, or
- Use capital losses to offset capital gains. Also, if you’ve held an asset for over 12 months, you might be eligible for a 50% capital gains tax (CGT) discount.
There are multiple benefits of tax planning including:
- Improved cash flow
- Minimises your business tax liability
- Peace of mind knowing that your financial affairs are in order
- Better financial management
- Compliance with tax laws
- Identify and mitigate risks
- Efficient timing of expenses and purchases, and
- Improved credibility with financial institutions.
- Tax-effective structuring: We can help you structure your business in a way that minimises your tax liability while maximising your after-tax profits.
- Maximising deductions: We can identify all eligible tax deductions and ensure you claim them on your tax return.
- Tax credits and concessions: We can help you take advantage of all tax credits and concessions that your business may be eligible for.
- Superannuation planning: We can help you optimise your super contributions and maximise your superannuation tax benefits.
- Corporate tax planning: We can develop a tax strategy tailored to your business needs and goals to minimise your tax liability and improve your cash flow.
- Small business tax planning: We can help small businesses identify tax-saving opportunities and develop a tax strategy that aligns with their long-term goals.
As a small business owner, you want to keep more of your hard earned money in your pocket. Let us help you create a tax plan that fits your unique situation. Get in touch with us to learn more.
RED OHMS Group Case Study
RED OHMS Group is a safety and industrial hygiene consultant to the mining and offshore markets. They were using online accounting software, Xero, but wanted to utilise it more effectively for their tax planning.
Carbon Accounting & Tax worked closely with RED OHMS Group on their tax planning, and offered strategic advice to minimise their tax payable.
Ready to transform your business through proactive accounting?
How to minimise your business tax
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