The end of the tax year will soon be upon as, with 30 June 2021 just around the corner.  Which we now highly recommend that we do some 2021 tax planning for your business and personal tax.

The months of May and June are the time to forward plan and analyse ways to reduce your 2020/2021 tax bill, based on your current income & expenses from July last year until now.

Last year was an extremely challenging year and many businesses have been affected by the COVID-19 Pandemic for a period of time, which was offset by extra income due to government benefits of jobkeeper, wages tax cashflow boost and grants.

There were also new tax rules such as asset write offs to assist business owners during this difficult time.  Some of the benefits your business could take advantage from tax planning now are:

  1. Tax planning meeting with us to discuss your business and see how things are going.
  2. Income and Profit estimates of what your 2021 total year profit could look like.
  3. Review how your business income and expenses are performing, and compare this to previous years.
  4. Tax payable estimates on the year’s profits, less what tax you have already paid so far, so what your tax return payable estimates may end up being.
  5. Be told ideas to reduce your 2021 tax bill via purchased assets and 100% claim, paying extra super, sharing profits with others, etc
  6. Do any wages needed to be recorded for business owners (which must be reported to the ATO at the time wages are paid now)?
  7. Utilize spare cash now – by knowing what 2021 tax payable estimate will be, you can use spare business funds you have accumulated to invest, purchase assets, reduce home loan, etc
  8. Free up cashflow by reducing quarterly tax installment for June, due to claiming asset purchases or showing a downturn in the business

We are here to help – so if you would like Account(able) Accountants to complete personalised 2021 Tax Planning specific to your business circumstances, then please respond to this email as soon as possible and we will be in contact with you.

The fees for this are usually in the range of $800-$1000, which for larger businesses with bigger structures, fees maybe up to $1500.  Which after 10% GST claim and tax benefit, the out of pocket cost to the business is only about half of this cost.

If you have any questions then please do not hesitate to contact our office on 5366 1000.