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The Importance of Tax Planning

Posted on June 6, 2016 by Kristy Hickey in Business Advisory Blogs, Structuring Blogs & Taxation Blogs

BLG Business Advisers believe tax planning is one of the most important annual events for all our clients. Understanding your projected earnings and tax position is essential. BLG will assist you in making sure you have the correct strategies in place, take the relevant action and/or make the necessary changes you require before the end of the financial year. This process also involves structuring to ensure the correct entities are in place to suit you and your requirements. BLG believes tax planning for our clients is imperative and will form part of your program with us.

Why do you need tax planning?

Whether dealing with your business or personal affairs, managing your tax liability is paramount. The tax rates and rules are constantly changing and we help you develop strategies to ensure current and future tax is minimised. We keep you informed of changing tax legislation and how it may impact you and your business. We develop a tax program that works for you. Specifically, tax planning ensures you:

  • plan for potential tax liabilities
  • review your financial structuring
  • put in place any changes that are imperative to be made before the end of the financial year

Keep in mind, there are specifics items that need to be performed ahead of the end of the financial year. As such, it is imperative these things are planned for with your business adviser.

When should you see your adviser?

Although we are constantly in contact with our clients and on the look out for such opportunities, we encourage you to contact us at any point in relation to any large or small decisions you think will affect your financial arrangements. In relation to matters that need to be attended before the end of the financial year, it is important to see your tax or business adviser in the last quarter of the financial year to ensure your strategies are correctly implemented. At BLG, this means we can:

  • review your current structure
  • analyse potential opportunities
  • analyse financial projections
  • implement any changes to improve your position ahead of year end

What is involved in tax planning?

The changes or strategies may include things such as:

  • Utilising carry forward tax losses
  • Reviewing family distribution groups and structuring
  • Utilising small business concessions
  • Maximising superannuation contributions and deductions
  • Writing off bad debts that are no longer recoverable
  • And much more!

Making sure you have covered all your bases ahead of financial year end will put you in good stead and may save you thousands or even tens of thousands off your tax bill. Like many other aspects of your financial life, through knowledge and understanding comes clarity and improvement.

Your next move

Take control of your taxes. Remember that taxes are the single largest recurring expense that most of us will have throughout our lifetime. Tax law is quite complicated, so if you think that any of the above matters may affect you or your business, get in touch with BLG Business Advisers on (02) 42292211. We can offer a BLG director to talk through your options with you ahead of the end of financial year.

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