Advivo's Tax Accountants share their insights on what your tax planning should consider this financial year.
With the ongoing pandemic and the devastating weather events, the 2022 financial year has undoubtedly been a challenging year for many businesses and their owners. Now more than ever, when it comes to 30 June, we recommend you speak with a tax professional about your tax accounting.
Tax planning should be one of the most important considerations as it assists business owners and considers the tax implications of individual investments, or business decisions, usually with the goal of minimising tax liability with no surprises at the end.
What should be considered this year?
- Small business instant write-off NO DOLLAR LIMIT for eligible assets from 6th October 2021
- Superannuation contribution work test has increased from 65 to 67 years of age from 1 July 2020
- Unused concessional contribution carries back from 1 July 2018
- Loss carryback provides a refundable tax offset that eligible corporate entities can claim after the end of their 2021–22 income years and in their 2021–22 company tax returns.
- Company tax rate down from 26% to 25% in 2022
- The individual marginal tax rate bracket has increased
Good tax planning results in the following:
- Giving correct information to relevant governing bodies such as the ATO.
- Being well informed of applicable tax laws.
- Consider business objectives and flexibility for incorporating future changes.
You could be a long-time taxpayer or a first-time payer, but if you did not plan your taxes properly, you could be paying more in tax than you have to.
Tax planning is critical for budgetary efficiency and allows all elements of the financial plan to function in sync to deliver maximum tax efficiency. We have provided detailed checklists for pre and post 30 June, which will assist you for EOFY. For more information on tax planning and minimisation for your business, contact us today.
