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Act fast, Plan early - 2017 Tax Planning

Written by Kristy Hickey . March 20, 2017
3 min read

As a business owner you probably have some goals you want to reach for your business. Do you know what strategies to put in place to get there or have a trusted adviser guiding you?

Tax planning is critical to the long term success of any business. It provides you with the opportunity to assess your current business performance and current financial position, as opposed to the preparation of year end financial statements that are based on historic information.

As we approach the last quarter of the 2017 financial year, it is important to take stock of how your business and investments are performing. Some questions you might like to ask yourself are:

  • Is your turnover in line with your expectations?
  • Are your profit margins as high as you were hoping?
  • Are your investments providing the returns you were hoping for?
  • How does this year’s performance compare to last year?
  • What is your current financial position?
  • Are there any opportunities you should be taking advantage of?
  • Have you provided for any potential tax liability?
  • Are there any strategies you should be implementing prior to 30 June to manage your tax liability?

If you are unsure of any of the above questions, we encourage you to speak to an experienced Chartered Accountant. BLG Business Advisers can assist you and provide:

  • Feedback on your business performance compared to industry standards
  • A review of your year-to-date performance
  • A projection of your year end results based on our knowledge of your business
  • A projection of your net tax position

BLG will discuss with you potential strategies to manage your tax liability, such as:

  • Restructuring the remuneration packages of directors and related parties to be tax effective
  • Distributing income across your family group in the most tax effective manner
  • Maximising dividend payments to utilise available tax free thresholds and low marginal rates
  • Ensuring compliance with Division 7A in relation to directors loan accounts and unpaid present entitlements (unpaid trust distributions)
  • Reviewing your ledger for potential unrecoverable debts or obsolete items of stock or equipment to be written off
  • Maximising superannuation contributions following the recent reforms, and detailing any impact the reforms may have on you and your family group
  • Advising minimum pensions to be paid from your superfund for the fund to maintain its tax exempt status

BLG Business Advisers can assist you with the implementation of any relevant strategies and help you plan for the cashflow impact of any upcoming tax liabilities. Make sure you meet with a trusted business adviser prior to 30 June so that any necessary action can be taken before year end.

Act fast and plan early – get in touch with BLG Business Advisers online or call (02) 4229 2211 to discuss your requirements and one of our experienced team will set up a tailored tax planning solution for you.

Written by Kristy Hickey . March 20, 2017
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