MINIMISE YOUR BUSINESS TAX - TAX PLANNING GUIDE

Imagine what you could do
with tax saved?

Reduce your home loan

  • Top up your super

  • Have a holiday

  • Deposit for an Investment Property

  • Upgrade your Car

 Here’s a guide to the strategies you can use to minimise your business tax.

REDUCTION IN COMPANY TAX RATES FOR SMALL BUSINESSES

 The company tax rate for businesses with less than $10 million turnover is 27.5%.

If you use a Trust structure, one strategy is to allocate profits to a “Bucket Company” and cap your tax at 27.5% for the 2019 year.

MAXIMISE DEDUCTIBLE SUPER CONTRIBUTIONS

 The concessional superannuation cap for 2019 is $25,000 for all individuals. Do not go over this limit or you will pay more tax!

PAY EMPLOYEE SUPERANNUATION NOW

 To claim a tax deduction in the 2019 financial year, you need to ensure that your employee superannuation payments are received by the super fund or the Small Business Superannuation Clearing House (SBSCH) by 30 June 2019.

“For the contribution to be counted towards the employee’s 2019 contribution cap, it must be received by the fund by 30 June 2019.”

WRITE-OFF BAD DEBTS

Review your Trade Debtors listing and write-off all bad debts BEFORE 30 June 2019. Prepare a management meeting document listing each bad debt, as evidence that these amounts were written off prior to year-end and enter these into your accounting system before 30 June 2019.

SMALL BUSINESS CONCESSIONS - PREPAYMENTS

 “Small Business Concession” taxpayers can make prepayments (up to 12 months) on expenses (e.g. loan interest, rent, subscriptions) BEFORE 30 June 2019 and obtain a full tax deduction in the 2019 financial year.

INSTANT DEDUCTION FOR ASSETS LESS THAN $30,000!

If your business is a Small Business Entity, the following tax concessions apply:

  •  Depreciating assets valued at less than $30,000 will be immediately deductible

  • Depreciating assets valued at more than $30,000 will be depreciated in one pool at a rate of 15% in the first year and 30% in future years

  • If your pool balance at the end of the year is less than $30,000 before applying any other depreciation deduction, the entire pool balance can be written off.

“You should buy these assets before 30 June 2019.”

DEFER INCOME

 If possible, defer issuing further invoices and receiving cash/debtor payments until after 30 June 2019.  This strategy pushes tax payable to future years.

BRING FORWARD EXPENSES

 Purchase consumable items BEFORE 30 June 2019. These include marketing materials, consumables, stationery, printing, office and computer supplies. Spend the money now and get the deduction this year.

REPAIRS & MAINTENANCE

 Make payments for repairs and maintenance (business, rental property, employment) BEFORE 30 June 2019.

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Call us now for more tax planning ideas!

0444 587 616

TRUSTEE RESOLUTIONS

 Ensure that the Trustee Resolutions are prepared and signed BEFORE 30 June 2019 for all Discretionary (“Family”) Trusts. Please see us for more information about these resolutions.

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.

Kyla Dalton