Creating a plan before the end of financial year, 30 June 2018, is crucial to ensure you are reducing your taxation liability as much as legally possible. Make sure you get in early and book an appointment with one of the team to see if there are any strategies to reduce your tax exposure.
Some of the common strategies to reduce your taxation liability
- Pay your super liabilities and review the caps to see if there is any scope for larger contributions
- Capital asset purchases ($20,000 write off is still available)
- Prepayment of expenses
- Accelerated depreciation
Highlighted areas from the latest budget
- The $20,000 instant asset write off is extended for small business entities until 30 June 2019
- The limit for allowable members in a self managed superannuation fund has increased from 4 to 6
- A limit of $10,000 to be implemented for cash payments for businesses in order to reduce money laundering and tax evasion
- The planned increase of the medicare levy from 2% to 2.5% will not proceed
- The government has laid out a plan over 7 years to reduce the marginal taxable income to a flat 32% for people earning from $90,000 to $200,000 a year
- Employers and contractors who do not meet withholding obligations will be denied tax deductions
Other points to consider with taxation advice
- Are you trading in the right structure? - you may need to review your overall structure for the year to come
- Are you making decisions based on commercial sense? - consider the tax treatment is the last element of a business decision
Please make contact with one of our team and we will be more than happy to advise you on your tax position and give some advice around reducing any potential liabilities.
Taxation is always complex. If you are not a client of Tradies Accountant, we recommend that you speak to your accountant well before the end of the financial year, to review your financial position. If you would like some help from us, our accounting team is more than happy to be of service so please, book a consultation.