Business structures that involve a family trust either as shareholder of a trading entity, or the trading entity itself, still present highly effective strategy when it comes to minimising tax across a family unit.
How can you best make use of expenditure items that are “prepaid” from a tax savings point of view?
Do you hold investments or have carry forward capital losses? Are you declaring a capital gain on the sale of CGT assets in 2020?
2020 is a year like no other! With Covid-19 Stimulus Measures in place, businesses have the ability to tax claim fixed asset purchases or the balance of their General Small Business Pool where the value is less than $150,000. For most small businesses, this presents a healthy tax break.
If your business is approaching financial year end with excess profit, a useful way to absorb this profit for tax saving purposes is to bring forward any planned purchases that you may have. By planned purchases we mean necessary spend that is planned for some point in time in the near future.
At this time of year we need to clean out the cobwebs, especially so for businesses where outstanding debtors have been neglected, not chased and remain outstanding over a period of time.
We are into the first week of June, and have you reviewed your profit? Do you still have excess profit that’s going to present as a tax bill by 30 June?
One of our many TAX SAVING strategies is to consider paying Directors what is known as a Directors Fee, as remuneration for holding this position of high responsibility.
Did you know that it can be more wealth and tax effective to pay year end bonuses to business owners than retain earnings in the business?
Did you know that your super fund pays tax on “concessional contributions” at 15%, which makes your super a great channel through which to save some annual tax dollars!