Anonymous
Anonymous

Taxation

What can I do now to save on taxes next year?

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1 Answer

Jef Lippiatt

Jef Lippiatt , Owner at Startup Chucktown

There are a few ideas that come to my mind

  • Review your vendors - you can shop around to see if you could save money with another vendor. Just don't save money at the expense of losing quality.
  • Look for cost savings - many services will give you a discount if you pay annually verses monthly. Sure this may not save thousands of dollars but it can help.
  • Work with a tax consultant or strategy consultant - they may be able to find cost savings by reviewing your business financials, ad spend and hiring processes.

James Huy Vuong

James Huy Vuong , Owner at Your Accounting Partners

I'm glad you asked, planning for the year ahead by far sets you apart from the masses as most are looking at things they can do now for the current financial ye... read more
I'm glad you asked, planning for the year ahead by far sets you apart from the masses as most are looking at things they can do now for the current financial year - tax planning is an all year round process so the earlier the better. Given our audience are SME business owners I will limit my comments to cover general business strategies that you could look into now for the 2016 FY - with the election coming up who is to know what will be passed but nothing will take the place of careful planning - Please contact your accountant or tax professional if you are considering any of generall info provided. Look at how you can use the Concessional Superannuation Cap, In order to claim a tax deduction in the 2016 financial year, the super fund must receive the contribution by 30 June 2016. Asset Depreciation- If your business is a Small Business Entity (turnover less tha n $2 million), the following tax concessions apply: • Depreciating assets valued at less than $20,000* will be immediately deductible • Depreciating assets valued at more than $20,000* will be depreciated in one pool at a rate of 15% in the first year and 30% in future years. *Measure based on 2015 budget. Defer Income - Where practical, defer issuing further invoices and/or receiving cash/debtor payments until after 30 June 2016. Not only will this defer tax until the 2017 year further assisting with business cash flow. Bring Forward Expenses - Purchase consumable items before 30 June 2016. These include stationery, printing, office and computer supplies. Repairs & Maintenance - Make payments for repairs and maintenance (business, rental property, employment) before 30 June 2016. Defer Investment Income & Capital Gains- If practical, arrange for the receipt of Investment Income (e.g. interest on Term Deposits) and the Contract Date for the sale of Capital Gains assets, to occur after 30 June 2016. Motor Vehicle Log Book - Ensure that you have kept an accurate and complete Motor Vehicle Log Book for at least a 12-week period. The start date for the 12-week period must be on or before 30 June 2016. You should make a record of your odometer reading as at 30 June 2016, and keep all receipts/invoices for motor vehicle expenses. Should the nature of the travel, vehicle or business use % have not changed you can use the log book for a 5 year period. Investment Property Depreciation - If you own a rental property and haven’t already done so, arrange for the preparation of a Property Depreciation Report to allow you to claim the maximum amount of depreciation and building write-off deductions on your rental property. Investment Property Depreciation - If you own a rental property and haven’t already done so, arrange for the preparation of a Property Depreciation Report to allow you to claim the maximum amount of depreciation and building write-off deductions on your rental property. Year End Stock Take / Work in Progress - If applicable, you need to prepare a detailed Stock Take and/or Work in Progress listing as at 30 June 2016. Review your listing and write-off any obsolete or worthless stock items. Write-off Bad Debts - Review your Trade Debtors listing and write off all Bad Debts before 30 June 2016. Prepare a minute of a Directors’ meeting, listing each Bad Debt, as evidence that these amounts were actually written off prior to year-end. | Small Business Concessions - Prepayments - “Small Business Concession” taxpayers can make prepayments (up to 12 months) on expenses (e.g. Loan Interest, Rent, subscriptions) before 30 June 2016 and obtain a full tax deduction in the 2016 financial year. Trustee Resolutions - Ensure that the Trustee Resolutions are prepared and signed before 30 June 2016 for all Discretionary (“Family”) Trusts. Please see us for more information about these resolutions.
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