So often clients approach their accountant after the end of the financial year and say “we’ve made too much profit, but we don’t want to pay too much tax”.
Guess what…tax planning happens before 30th June, not after. You really should be contacting your accountant now to discuss strategies to reduce the amount of tax payable.
So what are some of the strategies you can implement?
- Look at your stock…consider writing off any obsolete stock.
- Review your outstanding debtors (that’s the people who owe you money). Are any of them considered bad debts? If they are consider writing them off.
- Prepay some expenses.
- Maximise your superannuation contributions subject to the concessional caps.
- If you have a capital gain and you are holding investments or assets that could realise a capital loss…consider selling them.
- Defer your invoicing. Push the income into the next financial year.
- Write off assets that have outlived their useful life.
- Take advantage of the Federal Government initiative to write off new asset purchases up to $20,000
- If you have an investment property, consider a depreciation report.
There are many other strategies that can be implemented to tax plan. If you’d like to know more then please give us a call on 03 5995 3466.