As the end of the financial year approaches, getting your tax in order is vital.
Tax planning can help all businesses and individuals to plan and manage their tax position as the end of the financial year draws closer. This process allows businesses to see the bigger picture and gain a head start with their tax obligations. It involves assessing the need for any Division 7A repayments, utilising unrealised capital gains or losses, discussion on the changes around Division 100A and planning for any changes in your tax situation.
Tax planning simultaneously ensures savings on tax while addressing any legal obligations and requirements, such as determining if you can top up your super, writing off bad debts, and claiming eligible R&D tax offsets. It also allows for the preparation of smaller items like distribution resolutions, dividend statements, and jobs that are usually forgotten, getting them ready for the new financial year. The most important part of tax planning is the plan of your tax position before 30th June. Understanding options to reduce or defer tax payments, planning cash flow for tax instalments, and the tax due on tax return lodgements are key components of effective tax planning.
If you would like to book a tax planning meeting, please contact your Harris Black team member.