Advivo Business Advisors and Accountants share their insights on what should be considered for this financial year.
The 2021 financial year has undoubtedly been a challenging year for a many businesses and their owners. That means more than any other year when it comes to 30 June, it is recommended you speak with a tax professional about your tax planning. Tax planning is and should be one of the most important meetings for business owners. The planning assists owners and considers the tax implications of individual investment, or business decisions, usually with the goal of minimising tax liability with no surprise at the end.
What should be considered for 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 carry back provides a refundable tax offset that eligible corporate entities can claim after the end of their 2020–21 and 2021–22 income years, in their 2020–21 and 2021–22 company tax returns.
- Company tax rate down from 27.5% to 26% in 2021
- The individual marginal tax rate bracket has increased
Good tax planning results from the following:
- Giving correct information to relevant governing bodies such as the ATO.
- Being well informed of applicable tax laws.
- Planning should take into consideration business objectives and flexibility for the incorporation of future changes.
- You could be a long-time taxpayer or a first-time payer, in case you did not plan your taxes properly, you could be paying more in tax than you should.
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 a detailed checklist for pre and post 30 June, which will assist you for EOFY.
For further information on tax planning and minimisation for your business, contact Advivo’s Brisbane business advisors and accountants today.