Tax Strategies

Here are our 10 strategies for Tax Minimisation for your Businesses 

When it comes to tax minimisation for businesses, it’s essential to consult with a qualified tax professional or accountant who will be able to provide personalised advice based on your specific circumstances.

Here are some strategies you can implement prior to the end of the financial year to minimise your tax:

  1. Claim All Deductions: Keep track of all your expenses related to work, investments, and other allowable deductions, such as home office expenses, self-education costs, and charitable contributions.
  2. Maximise Superannuation Contributions: Consider making additional contributions to your superannuation account, as these contributions may be eligible for tax benefits. Be mindful of contribution caps and seek professional advice to ensure you’re making the most of superannuation tax concessions.
  3. Capital Gains Tax Planning: If you’re considering selling assets that will result in capital gains, consult with a tax professional to discuss strategies for managing your capital gains tax liabilities. Strategies such as holding assets for more than twelve months to access the capital gains tax discount or using capital losses to offset gains can be explored.
  4. Salary Packaging and Fringe Benefits: Explore salary packaging options provided by your employer, such as sacrificing a portion of your salary towards certain benefits like cars, laptops, or additional superannuation contributions. These arrangements can provide tax advantages, so it’s worth investigating what options are available to you.
  5. Small Business Tax Concessions: If you’re a small business owner, familiarise yourself with the various tax concessions and incentives available to small businesses. These may include simplified depreciation rules, immediate write-offs for certain assets, and access to the small business tax offset. 
  6. Prepay Expenses: Consider prepaying deductible expenses before the end of the financial year to bring forward the tax deduction. This strategy can be applicable for expenses such as insurance premiums, subscriptions, or professional fees.
  7. Review Investment Strategies: If you have investments, review your investment portfolio to assess any potential tax implications or opportunities. Consider strategies such as tax-efficient investment structures, timing capital gains, or exploring investment options with favorable tax treatment, like investments in certain start-ups or government-approved schemes.
  8. Pay Superanuantion Contributions: Pay all employee super contributions prior to 30 June as super contributions are only deductible once paid and received by the fund. We recommend paying the contributions by no later than 20th June to ensure they are received by the fund prior to 30th June.
  9. Defer Cashflow: Subject to cashflow, defer income until the following year by delaying invoicing until after 30 June. 
  10. Business Structure: If your business makes a profit higher than the income levels your family need to live, consider using your structure to ensure that tax rates are minimised across your group. 

Some of the above tax minimisation strategies you will be able to implement yourself and others you’ll need advice and assistance from a professional. Always remember though that tax is only ever a percentage of your earnings so never buy an asset or incur an expense only to obtain a tax deduction.

Family or Discretionary Trusts

Family Trusts

For those with Family or Discretionary Trusts, there are several new issues to consider this year which need to be carefully considered which revolve around:

  • Distributing from a Family Trust to adult children; and
  • Distributing profit from a professional business such as accountants, lawyers, architects, doctors, consultants etc.

Tax minimisation and business structuring should be done together, and is a specialist area.

We are happy to chat with you at any time to help you with this or any other areas of your business. 

Everything starts with the foundations of your business. If you are worried about the foundations of your business or interested to know if the foundations of your business are solid read our article here