Paying Less Tax this Financial Year? Here is How!
By Vik Naidu
EVERYONE wants to save on tax BUT not everyone knows how to or where to go for help. The good news for you is that there are hundreds of strategies that are simple to implement and numerous complex ones too that can facilitate in helping you save tax this financial year. However, it is always best to do it as soon as possible and not leave it till late as this could reduce the amount of savings you acquire.
1.Write off all the Bad Debts You Procure
Income Tax by definition enforces you to pay tax on all invoices that have been issued even if you haven’t received the income as of that period. In order to ensure tax savings from this prepare documents listing all your bad debts as evidence that these amounts were written off at year end so they do not follow through to the next year.
2. Delay Income Payments
If you have the capacity to and if your cash flow is able to withstand a deferred influx of income, it could be beneficial to defer income receipts till after the end of the financial year – post 1st July. This inevitably will postpone your tax liability by a further year and the tax payable on that income subsequently will be rescheduled to the following here.
3.Before spending ALWAYS claim!!!!
The ATO enables you to claim on expenditure before the actual expense is made. This essentially means that even if you have not paid you are still able to claim. Everything from staff bonuses to fees to repairs to fixtures to fittings, basically everything business related that has been billed before June 30th can be claimed even if the expense has not been made.
4.Capital Gains Tax (CGT)
“How will I be able to claim CGT?” you may be asking. CGT is actually one of the most common tax saving strategies that not many people know about. The one big tip we at Oyster Hub can provide to you is for each asset you are gaining on ensure that you own the asset for a minimum of 12 months so that you can reap the massive tax differential on offer, this will inevitably save you a lot on tax payments. However, there are numerous other factors and CGT concessions that we can display to you shall you decide to come find out.
“But wont I have to pay my accountant to help me with all of this” ~ Any fees you pay to your accountant can be claimed as a tax deduction. Although it is not an expense rather an investment these tax planning tax strategies can save your business thousands and thousands of dollars in the long run.
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