It’s Tax Planning Time!
With the end of the financial year approaching fast, NOW is the time to take proactive steps to review your tax position and put strategies in place to minimise your tax.
Why is tax planning so important? For the following key reasons:
Cash flow planning
Know how much tax you need to pay by up to 12 months in advance to help with cashflow planning.
Implement strategies
Identify opportunities before 30 June to minimise tax and implement strategies well before the end of the financial year.
Some strategies need to be implemented before 30 June to ensure you secure an appropriate tax deduction. For example:
- Super contributions need to pass through the super clearing houses and have been received by your superfund in order to claim a deduction. This process can take several business days.
- In order to claim the instant asset write off, the asset must be first used or installed ready for use by 30 June. Some assets may take several months to be delivered and a tax deduction is not available until the asset is used or installed.
Trust Distribution Resolutions
Assist with determining profits from trusts so that Trust Distribution Resolutions can be completed by 30 June 2022.
If a resolution has not been made by 30 June, the trustee may pay tax on trust profits at the highest marginal rate of 47%.
