Tax planning

Tax Planning

With the 2021 Financial Year end rapidly approaching, now is the time to take stock and take advantage of tax planning strategies. Depending on your situation, you might benefit from the following tips (of course, please contact us for a specific tax planning strategy):

Businesses:

• Instant asset write-off
• Deferring income
• Bad debt write-off
• Prepaid expenses
• Review depreciation schedules
• Base Rate Entity Company Tax Rate – Companies with an aggregated turnover of less than $50 million continue to be eligible for the 26% corporate tax rate. The next company tax rate change to 25% is currently scheduled to take place in the 2021/2022 financial year
• Dividends and Franking Credits: The rate at which dividends can be franked has changed and is dependent on the activities that the company engages in. It is important to confirm your franking percentage with our office prior to declaring and issuing dividends and statements to shareholders. Particular attention will be required in the 2021 financial year in line with the company tax rate changes

Individuals:

• personal concessional contribution to super before 30 June 2021
• salary sacrifice arrangement into your Super with your employer. Ensure you have completed the necessary paperwork before 30 June 2021
• review any capital gain events and any capital offsets available to reduce tax payable
• motor vehicle deductions – use either the cents per km method or logbook method. Please ensure you have a valid up to date logbook for the 2021 financial year or can substantiate the kilometres travelled

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