How to minimise your business tax this EOFY

If there is one thing we know for certain, it’s that everyone wants to pay less tax. It’s money straight back in your pocket.

Imagine the things you could do with money gifted straight back to you. Pay an additional instalment off your home loan. Take a holiday. Prepay your school fees.

The list could go on.

So, how do you minimise your business tax?

You undertake some tax planning prior to June 30.

What are the benefits of tax planning?

Tax planning has additional benefits on top of reducing your yearly tax bill (which in itself is benefit enough!)

By channelling your money into different investment plans, you are also optimising your overall position and opportunity for future growth. It gives you more control over your taxation and investment decisions.

How can tax planning help you?

Taxation planning is analysing your current financial position and legally implementing strategies that help to minimise your tax payable.

It is best done in the months leading up to June 30 so you have the time to implement your chosen strategies.

What types of tax planning strategies are there?

  1. Super contributions

    Maximise deductible super contributions up to $25,000. Ensure to pay any employee super contributions prior to June 30. Avoid any last-minute payments as the processing of payments can be delayed and you may miss the June 30 cut-off.

  2. Bring forward expenses

    Need a new website? New marketing materials or a new computer? Purchase these items prior to June 30 to receive the deduction.

  3. Repairs and maintenance

    Make any required repairs and maintenance to your place of business or rental property prior to June 30.

  4. Make a small business concession payment

    Small businesses can make a prepayment on expenses such as loans, rents, subscriptions and interest prior to June 30 to receive the deduction this financial year.

  5. End of year stocktake

    Complete your EOFY stocktake and write off any obsolete items.

  6. Write off bad debts

    Write off all bad debts prior to June 30 for any outstanding debtors.

  7. Defer Capital Gains and investment income

    Attempt to defer any capital gains and investment income until after June 30.

These are just a few examples of how we can assist you to minimise the amount of business tax you pay this year. By implementing some important strategies into your yearly planning, we can help you minimise tax and put more money back into your pocket.

If you are interested in maximising your return and minimising your tax payable, contact our team to book a tax planning strategy session.