Tax Consulting and Planning

Tax consulting and planning services are integral components of sound financial management for individuals and businesses alike. At their core, these services revolve around the art and science of minimising tax liabilities while maximising financial efficiency and compliance with ever-evolving tax laws and regulations.

Here is how our tax compliance accountants can help you.

Tailored advice to assist you to make the right business decision.
ATO and State Revenue Office audit support, guidance and negotiations.
Tax effective structure and restructure advice and strategy for acquisition, mergers and success planning.
Business start-up: helping clients to start up the business, including business structure selection, business plan preparation, budget and cost control, tax planning, accounting software selection and accounting system setup, financial analysis, industry license application (refer to the RTO, AUSTRAC， AFSL license page).
State-based taxes including, stamp duty, payroll tax and land tax.
Superannuation advice and planning.
Strategies for employment related taxes.

Tax planning strategies for businesses

Choose the Right Business Structure:

The type of business entity you choose (e.g., sole proprietorship, partnership, corporation) can significantly impact your tax obligations. Evaluate the pros and cons of each structure to minimise taxes and protect your assets.

Tax Deductions: Take advantage of all available deductions. This includes business-related expenses such as rent, utilities, supplies, and employee wages. Keep meticulous records to support these deductions.
Depreciation and Amortisation: Consider depreciation and amortisation deductions for the cost of business assets. Consult ATO guidelines to determine the applicable depreciation methods and schedules.
Tax Credits: Research available tax credits for your industry or business activities. Common credits include research and development credits, energy efficiency credits, and hiring incentives.
Income Splitting: In some cases, income splitting among family members or partners can be a tax-efficient strategy, allowing you to allocate income to individuals in lower tax brackets.
Hire Tax Professionals: Engage qualified tax professionals or accountants who specialise in business taxation. They can help you navigate complex tax laws and ensure you’re taking advantage of all available tax benefits.
Estimated Tax Payments: Stay on top of your estimated tax payments if you’re self-employed or a business owner. Underpaying taxes throughout the year can result in penalties and interest charges.
Tax-Deferred Investments: Explore tax-advantaged investments and opportunities that allow you to defer or reduce capital gains taxes, such as Opportunity Zones or like-kind exchanges.
Stay Informed: Stay updated on changes in tax laws and regulations that may affect your business. Being aware of new opportunities or obligations can help you adapt your tax strategy.
International Tax Planning: If your business operates internationally, consult with tax professionals experienced in international tax law to optimise your global tax strategy while ensuring compliance with relevant treaties and laws.
Record-Keeping: Maintain thorough and organised financial records, including receipts and documentation related to income and expenses. Proper record-keeping is essential for tax compliance and audits.
Year-End Planning: Consider year-end tax planning strategies, such as accelerating deductions or deferring income, to manage your tax liability effectively.
Asset Protection: Explore legal strategies for protecting your business assets while minimising tax exposure.

Tax planning strategies for individuals

Claim All Deductions:

Take advantage of deductions available to you, such as work-related expenses, self-education expenses, and deductions for rental properties. Keep detailed records and receipts to support your claims.

Contribute to Superannuation: Maximise your contributions to superannuation (super) accounts to reduce your taxable income. There are limits on how much you can contribute each year while still receiving favourable tax treatment.
Consider Salary Sacrifice: If your employer offers salary sacrifice arrangements for super contributions, consider taking advantage of them to reduce your taxable income.
Use Capital Gains Tax (CGT) Discounts: If you hold assets like shares or real estate for more than 12 months before selling, you may be eligible for a 50% CGT discount, reducing the capital gains tax you owe.
Invest Wisely: Invest in tax-efficient assets and structures, such as franked dividend stocks, which can reduce your overall tax liability. Consider holding investments jointly with a spouse to optimise the use of tax brackets.
Take Advantage of Tax Offsets: Explore tax offsets, such as the Low and Middle Income Tax Offset (LMITO), the Senior Australians and Pensioners Tax Offset (SAPTO), and the Australian Government Rebate on Private Health Insurance.
Split Income: If you’re in a relationship, consider income splitting strategies, such as distributing income-producing assets between partners to make the most of lower tax brackets.
Claim the Private Health Insurance Rebate: If you have private health insurance, ensure you’re claiming the appropriate rebate based on your income level.
Charitable Donations: Make deductible charitable donations to eligible organisations, and keep records of your contributions for tax purposes.
Invest in Education: Take advantage of the Education Tax Refund (ETR) for eligible education expenses, including school-related expenses and higher education expenses.
First Home Super Saver (FHSS) Scheme: If you’re saving for your first home, consider the FHSS scheme, which allows you to make contributions to your superannuation to save for a home deposit with tax advantages.
Plan for Retirement: As you approach retirement, consider tax-efficient strategies for drawing down on your superannuation savings.
Seek Professional Advice: Tax laws in Australia can be complex. Consult a qualified tax professional or financial advisor to help you navigate the tax code effectively and make informed financial decisions.
Stay Informed: Keep up-to-date with changes in tax laws and regulations that may affect your financial situation in Australia. Staying informed ensures you can adapt your tax planning strategies accordingly.

Why you should take your taxation process and strategies seriously?

Taking your taxation process and strategies seriously is essential because it ensures legal compliance, minimising the risk of penalties and legal issues. It enables you to minimise tax liabilities, freeing up more of your financial resources for your goals and investments. Proper tax planning optimisesoptimizes financial efficiency, protects your assets, and enhances competitiveness for businesses. It provides peace of mind by preventing unexpected tax surprises and aligns your financial decisions with your objectives, whether that’s retirement security, homeownership, or wealth accumulation.

Legal Compliance: Taxation is governed by complex laws and regulations. Failing to comply with these laws can lead to legal consequences, including penalties, fines, and even criminal charges. Taking taxation seriously helps you stay on the right side of the law.
Minimised Tax Liabilities: Effective tax planning and strategies can significantly reduce your tax liabilities. This means you can legally pay less in taxes, allowing you to keep more of your hard-earned money for your financial goals.
Financial Efficiency: Proper tax planning can help you make more efficient financial decisions. By understanding the tax implications of various financial choices, you can optimiseoptimize your investments, expenses, and income streams to your advantage.
Asset Protection: Tax planning can also play a role in protecting your assets. Certain strategies can help shield your wealth from excessive taxation or creditors, ensuring that you retain control over your financial security.
Business Competitiveness: For businesses, tax planning can be a competitive advantage. Proper tax management allows companies to allocate resources more efficiently, invest in growth, and compete effectively in their industries.
Peace of Mind: Knowing that you’ve taken the necessary steps to manage your taxes responsibly can provide peace of mind. You can focus on your financial goals and future without the stress of potential tax problems.
Avoiding Tax Surprises: Proper tax planning helps you avoid unexpected financial setbacks. By estimating your tax liabilities accurately and paying taxes throughout the year, you can prevent surprises at tax time.
Financial Goal Achievement: Taxes can significantly impact your ability to achieve financial goals, whether it’s saving for retirement, buying a home, or funding your children’s education. Taking taxation seriously means aligning your tax strategies with your financial objectives.
Government Benefits: Some government programs and benefits are tied to your tax status. Proper tax planning ensures that you receive any benefits or credits you’re entitled to, whether it’s social assistance, healthcare subsidies, or educational grants.
Retirement Security: Tax planning plays a significant role in retirement security. By optimisingoptimizing retirement accounts and withdrawal strategies, you can enhance your financial well-being in retirement.
Wealth Accumulation: Over time, effective tax planning can lead to substantial savings, allowing you to accumulate more wealth for yourself and future generations.

FAQ

Why you should only work with tax compliant accountants for your tax planning?

Working with qualified accountants and registered tax agents for your tax planning is essential for several critical reasons:

Legal Compliance: Tax laws and regulations are complex and continually changing. Qualified accountants and registered tax agents are knowledgeable about the latest tax laws and can help ensure that your tax planning strategies are fully compliant with the law. This minimises the risk of legal issues, penalties, and fines.
Minimised Audit Risk: Working with a qualified accountant and registered tax agent reduces the likelihood of being audited by tax authorities. They are less likely to engage in aggressive or questionable tax practices that may attract the attention of tax authorities.
Maximise Tax Savings: Qualified accountants and registered tax agents are skilled at identifying legitimate tax-saving opportunities within the bounds of the law. They can help you optimise your tax strategies to minimise your tax liabilities while staying within legal limits.
Professional Expertise: Qualified accountants and registered tax agents have the expertise and experience needed to navigate the complexities of tax planning effectively. They can provide valuable insights and guidance to help you make informed financial decisions.
Audit Support: If you are ever audited by tax authorities, a qualified accountant and registered tax agent can provide valuable support during the audit process, helping you respond to inquiries and provide the necessary documentation to demonstrate your compliance.
Risk Mitigation: Engaging with tax-compliant professionals reduces the risk of financial and reputational damage associated with non-compliance or unethical tax practices. It safeguards your financial well-being and reputation.
Stakeholder Trust: For businesses, tax compliance enhances the trust of stakeholders, including customers, investors, and partners. It demonstrates your commitment to responsible financial management.

When should you start preparing for your tax returns?

The tax year for most taxpayers typically runs from 1st July to 30th June of the following year. Here are some important dates and general guidelines for preparing and filing your tax return:

End of Financial Year (EOFY): The Australian financial year ends on 30th June . This means that you should start preparing for your tax return shortly after this date.
Tax Return Due Date: The due date for most tax returns starts from 31st October of the same year. However, if you’re using a registered tax agent or accountant to assist with your return, you may have an extended deadline. Registered tax agents typically have until 15th May of the following year to lodge tax returns on behalf of their clients.
Engaging a Tax Agent: If you plan to use a registered tax agent or accountant to assist with your tax return, it’s advisable to schedule an appointment well in advance of the deadline.
Payment Obligations: If you owe taxes, the due date for payment is typically the same as the lodgement deadline. If you have a tax liability, it’s important to ensure that you have the necessary funds available to pay your tax bill by the due date to avoid penalties and interest.
Record-Keeping: Good record-keeping throughout the year can simplify the tax preparation process. Keep organised records of income, expenses, deductions, and other relevant financial transactions.

What should you not be doing in your tax returns?

When preparing your tax returns, it’s essential to avoid certain actions or practices to ensure compliance with tax laws and regulations and to minimise the risk of audits, penalties, and legal issues. Here are some things you should not do on your tax returns:

Falsifying Information: Providing false or misleading information on your tax return is illegal and can lead to serious consequences. This includes inflating deductions, understating income, or providing inaccurate personal information.
Omitting Income: You must report all sources of income, including wages, self-employment income, rental income, interest, dividends, and any other income received during the tax year. Failure to report income can result in penalties and interest charges.
Claiming False Deductions: Claiming deductions that you are not eligible for or inflating the amount of deductions is not allowed. Deductions must be legitimate and supported by appropriate documentation.
Ignoring Tax Credits: Failing to take advantage of eligible tax credits means you may be paying more in taxes than necessary. Be aware of available tax credits and claim them if you meet the criteria.
Not Keeping Records: Proper record-keeping is crucial for substantiating income, expenses, and deductions claimed on your tax return. Without adequate documentation, you may have difficulty supporting your claims in case of an audit.
Engaging in Tax Evasion: Tax evasion, which involves intentionally evading taxes through illegal means, is a serious crime. Activities such as hiding income, creating fake expenses, or using offshore accounts to conceal money are illegal and can result in criminal charges.
Neglecting to File: Failing to file a required tax return is also a violation of tax laws. Even if you cannot pay your taxes in full, it’s essential to file a return to avoid additional penalties for late filing.
Not Reporting Cash Transactions: Certain cash transactions, particularly those over a specific threshold, may need to be reported to tax authorities. Failure to report such transactions can lead to penalties.
Claiming Personal Expenses as Business Expenses: If you have a business, be careful not to claim personal expenses as business expenses. Expenses must be directly related to your business to be deductible.
Ignoring Tax Deadlines: Missing tax filing and payment deadlines can result in late fees and interest charges. Make sure to file your tax return and pay any taxes owed on time.
Relying on Incorrect Information: Ensure that you use accurate tax forms and guidelines when preparing your return. Mistakes due to using outdated or incorrect information can lead to errors on your return.
Not Seeking Professional Help When Needed: Complex tax situations, significant life changes, or business activities may require professional tax advice. It’s wise to consult with a tax professional when needed to ensure accurate and compliant tax returns.

Remember that tax laws and regulations can be complex and vary by jurisdiction, so it’s essential to stay informed and seek professional advice when necessary to avoid potential pitfalls and legal issues when filing your tax returns.

Have questions? Get in touch today.