2021 Tax Planning

2021 Tax Planning

As the saying goes, there are only two things in life that are certain – death and taxes. While you can’t avoid paying taxes, you can make use of tax planning strategies to reduce the amount that you do pay.

The most effective tax planning strategy starts with seeking professional advice well before the end of financial year.  As we rapidly approach 30 June, now is the time to take advantage of opportunities to reduce or defer your tax liability.  Through our tax planning sessions, we can help you be as tax-efficient as possible whilst remaining compliant with the latest legislation.

 

What can you expect from a tax planning session?

 

1. We estimate your 2020-21 taxable income position and resulting tax liability based on year-to-date figures plus estimates of expected income and expenses. This includes all wages income, interest, dividends, rental income, business profits/losses, and any capital gain or losses you expect to make.

2. We discuss all of your tax options with consideration to both your short and long-term needs. Tax planning discussions typically include:

• Maximising superannuation contributions without exceeding the relevant limits
• Minimising business tax by bringing forward deductibles and deferring income
• Minimising personal tax
• A review of your Division 7A loan position (if applicable) and resulting tax consequences
• Optimising trust distributions and preparing Trust Distribution Resolutions
• A review of your SMSF position (if applicable) to determine if any action is required as a result of changes to superannuation legislation.
• A review of your Capital Gains Tax position (if applicable)
• A discussion on the impact on cash flow for business tax liabilities or PAYG instalments and of the strategies put in place.

3. We provide you with a Tax Plan that explains the strategies we recommend and exactly how much each strategy will save you in tax.

4. We provide you with an Action Plan to ensure that everything that needs to be actioned is completed before 30 June.

 

Book in a tax planning meeting:

Our tax specialists conduct tax planning sessions from April to June.  The earlier this occurs the better, as you’ll have more time to take advantage of strategies and organise your cash flow around any tax liabilities.

To organise a meeting to work through your year-end tax planning, contact Marsh & Partners on (07) 3023 4800 or at mail@marshpartners.com.au .

You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.

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