Tax Planning.
At Causbrooks, we understand the significant impact effective tax planning can make to the lives of our clients. Our expertise in navigating the ATO's rules around tax planning, including implementing tax efficient structures, has been instrumental in securing financial health and peace of mind in our clients. By focusing on maximising deductions, particularly ones that can be overlooked, such as personal superannuation contributions, we ensure our clients benefit from every available exemption and concession.
Our approach to tax planning is comprehensive and tailored to the unique circumstances of our clients. This strategic focus has consistently delivered success stories across the spectrum, from individuals operating via a sole trader structure or discretionary trust through to small to medium enterprises, family-owned businesses, and established companies.
Minimise Tax Liability.
With strategic tax planning, you can optimise your financial affairs to legally minimise your tax liability. By leveraging available deductions, offsets, and concessions tailored to your business structure and personal circumstances, you may be able to keep more of your hard-earned money in your pocket.
Maximise Deductions.
Availing yourself of all eligible deductions may significantly reduce your taxable income, leading to lower tax obligations. Our tax planning service ensures you're aware of every potential deduction applicable to your situation, from business expenses to depreciation allowances, helping you retain more profits within your business.
Strategic Structuring.
Proper business structuring is key to achieving tax efficiency. We work closely with you to assess your current structure and identify opportunities for improvement. Whether it's restructuring your business entity, implementing tax effective investing strategies, or planning for succession, we'll help you navigate the complexities of the Australian tax system to ensure optimal outcomes for your business and personal finances.
Tax Planning with Causbrooks
At Causbrooks, we’re dedicated to helping businesses with their taxation and accounting needs. If you’d like to discuss your own situation, please complete the form below.
Our team of dedicated accountants is committed to providing the best possible experience for our clients, and we believe that our combination of longevity and experience in the industry and our commitment to embrace innovation and change make us uniquely qualified to do so.
Who can Benefit from Tax Planning?
It's not just for the wealthy or big companies. At Causbrooks, we've seen how effective tax planning can help everyday Australians save money and reach their financial goals.
Around half of Australian taxpayers are already using legal tax planning methods to their advantage, strategies such as negative gearing their residential properties or salary sacrificing super contributions.
Tax planning is about making smart decisions that set you up for success. There are many strategies that might help you reduce your tax liability.
Why Tax Planning is Important.
Tax planning is a crucial step in managing your finances effectively. By reviewing your income, assets, and liabilities before the end of the financial year, you can prevent unexpected tax bills and ensure you're taking the right steps to optimise your tax situation by 30 June. This proactive approach not only has the potential to reduce your tax liability through smart use of deductions and credits but also helps you make informed decisions about your financial and business tax strategies, ensuring you're covering all bases.
The need for tax planning varies greatly depending on your individual circumstances, such as what stage you are in your career, your property ownership, or business operations. The diversity in tax implications highlights the importance of regular tax planning sessions.
Consulting with a tax advisor is essential to ensure your tax compliance is sound and that you're making the most of the tax benefits available to you. Starting this process in the early months, like April or May, allows you to capture all opportunities and avoid any unwanted surprises.
Tax Considerations for Business Owners.
If you own a business, it's wise to look closely at your taxes each year before 30 June. Since every business is different, the points here are just a broad outline focusing on areas like managing your business income, planning your taxes effectively, keeping up with tax rules, and making the most of tax savings. These steps are key to keeping your business financially healthy and helping it grow.
To make sure you're doing everything right with your taxes and taking full advantage of any benefits, it's a good idea to talk to a tax professional. They can guide you through things like how your business setup affects your taxes and ways to invest that are good for tax savings. This advice is crucial for protecting what you own and making sure both you and your business are set up for success.
Maintenance and Repairs.
Aim to complete any necessary repairs or maintenance on business-related equipment, vehicles, or rental properties before 30 June. Some of these repairs might be eligible for tax deductions. It's wise to consult with your tax advisor to understand how to make the most of these tax advantages.
Employee Payroll Reporting.
Many employers are already using the Single Touch Payroll (STP) system. Small business owners and those with closely held employees began reporting through this system starting 1 July 2021. The scope of STP reporting expanded from 1 January 2022.
Purchasing Depreciating Assets.
When you buy something that loses value over time for your business, like equipment, you can usually deduct its cost right away on your taxes, thanks to a rule called instant asset write-off. This concept, referred to as temporary full expensing or instant asset write off, is intended to encourage business investments in necessary assets.
Writing Off Bad Debts.
Bad debts can be deducted from your taxes, but you need to have formally written them off before you can make a claim. This involves documenting the write-off before the financial year ends, which might mean removing the debt from a customer's ledger or noting it as a bad debt expense in your accounts. To qualify for this deduction, the debt must not have been waived, forgiven, or sold.
Tax Deduction Threshold for Businesses.
If your business qualifies, you might be able to get instant tax deductions for items bought for the business. But, these deductions have a cap.
We're not just advisers; we're partners in your financial journey, ensuring every decision is informed, every risk is managed, and your financial health is always at the forefront.
Start Saving on Your Taxes Today!
Tax Considerations for Rental Properties and Assets.
When it comes to rental properties, there are specific points to consider as the financial year comes to a close. For a rental property to qualify for tax deductions, it needs to be actively available for rent throughout the year, even if there were times when it didn't generate any rental income. However, if you're renting the property to friends or family at a rate much lower than the market value, it might not qualify as being 'available for rent', which could affect your ability to claim deductions. Remember, you can only deduct expenses that you've actually paid for, not those covered by your tenants. It's also essential to have all the necessary documentation to support your claims.
Deductible Expenses for Investment Properties.
Other Deductible Expenses.
There are numerous other costs associated with maintaining a rental property that you might be able to claim. These include routine maintenance tasks, advertising for tenants, strata fees, council rates, building insurance, and other related expenses. For a comprehensive list of what's claimable, it's advisable to check the ATO's guidelines.
Loan Interest.
If you've taken out a loan for investment purposes, like purchasing an investment property or funding repairs and renovations, the interest on that loan is usually deductible. This includes interest from any additional borrowing used directly on your rental property for improvements or renovations. Loan-related costs, such as mortgage insurance or exit fees, may also be deductible over five years.
Repairs
Costs for repairing your investment property, due to wear and tear, are typically deductible. These repairs must be for fixing damage that occurred after you acquired the property and aim to restore it to its original condition. It's important to distinguish these from improvements, as the latter are treated differently for tax purposes.
Improvements
When you invest in enhancing your property or if it was already improved when you purchased it, these expenses are considered capital costs. They are not immediately deductible but are depreciated over the asset's useful life.
Next Steps.
Compliance is a key aspect of tax planning as there are many tax avoidance schemes you could unwittingly fall into if you're doing your own tax planning or don't receive proper advice from a tax professional who understands the rules. The ATO has a list of current tax avoidance schemes to watch out for, which you can find here.
If you think you could benefit from tax planning and feel you aren't currently receiving adequate advice from your accountant in this area, reach out to us today. We've been providing tax services to the greater Sydney area and beyond for over 20 years.
About Causbrooks.
Causbrooks gives you a client manager supported by a team of knowledgeable small business experts. We’re here to take the guesswork out of running your own business.
Get in touch with us to set up a consultation or use the contact form on this page to inquire whether our services are right for you.
Disclaimer
Any advice contained in this document is general advice only and does not take into consideration the reader’s personal circumstances. Any reference to the reader’s actual circumstances is coincidental. To avoid making a decision not appropriate to you, the content should not be relied upon or act as a substitute for receiving financial advice suitable to your circumstances.
Contact us today for a consultation.
Contact us today to learn more about how our accounting services can benefit your business. We look forward to hearing from you and helping you achieve financial success!
