The end of the financial year is fast approaching. With this time of year comes thoughts about tax deadlines, payments or refunds. If you’re a business owner or an investor, some questions that may have crossed your mind include:
- Have I paid too much tax and will I get a refund?
- Will I have a large tax bill due at the end of the year?
- Have I complied with my tax obligations?
- Can I do anything to get the cash back sooner to pay other bills?
- hat can I do before the end of the year to improve my tax position?
Tax planning assists in dealing with all of the above. Perhaps most importantly, the tax planning process helps to forecast expected tax-related cash flows in the year to come so that there are no surprises.
Knowing how much and when these payments are due can help ease cash flow burdens and prevent any nasty surprises. An unpleasant surprise would be to have a prompt due date for tax penalties after the return has been completed.
Another benefit of tax planning is the ability for your adviser to identify actions you can take pre-30 June to reduce your tax bill or improve your cash flow, including:
- Pay superannuation liabilities to obtain a deduction a year sooner;
- Bring forward other expenses to obtain the deduction this year;
- Make additional superannuation contributions to increase you super balance while reducing your personal tax; and/or
- Varying down instalments so you don’t overpay tax and have to wait until your return is lodged to receive the cash back. This additional cash today may be put to better use paying other bills or used to reduce your debt(s).
The sooner you have your annual tax planning meeting, the sooner your Altus Adviser can help you improve your business or personal position.
Take more control of your financial world and let us help you with your tax plan.
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