For many Australian businesses, the end of the financial year brings a familiar sense of stress. The annual ritual of preparing your tax return, however, is a fundamentally a reactive process; a last-minute attempt to minimise a tax bill that was locked in by decisions you made months ago.
While claiming every legitimate deduction is an important part of managing your tax profile. The most impactful tax strategies are not found in a receipt folder in late June, they are proactive, structural decisions that happen long before the end-of-year deadline. By rethinking your approach, you can transform tax planning from a reactive burden into a powerful and creative tool for achieving your most important financial and lifestyle goals.
“It’s a year-round strategy, not a June scramble”.
Effective tax planning must be undertaken well before 30 June to allow enough time to implement meaningful strategies. This proactive approach is critical as decisions you make about your income, expenses, and investments throughout the year have significant tax implications that cannot be altered after the fact.
For example, deciding to sell a profitable asset in June versus July can shift a significant capital gains tax liability from one financial year to the next, giving you a full year to plan for the payment. Planning from the start of the financial year gives you control over your financial and tax outcomes, allowing you to legally and effectively structure your business and investments to reduce your overall tax liability.
Value to You
By forecasting expected income and tax payable for all entities and individuals in your family group, we can then develop strategies to “spread” your income across your family group in the most tax effective way – and legally reduce your tax.
The overall benefit to you could result in significant family group tax reductions. We will be able to quantify these throughout our process.
“The goal isn’t just less tax”
Ultimately, the purpose of strategic tax planning is not simply a defensive act of minimising what you owe. It is a positive and creative act of funding your goals and building the lifestyle you want.
The Plan
To achieve this for you, MyCFO Advisory we will need to:
- Estimate the Taxable Income for all entities and individuals in your family group
- Estimate the initial Tax Payable for all individuals and entities
- Develop “income spreading” strategies to reduce your overall family group tax payable
- Advise you of tax reduction strategies
- Meet with you and answer any questions you may have about our tax reduction strategy advice
The most powerful tax strategies involve your business and investment structures . How your business income, investments and assets are owned and organised. This shifts the focus from saving small amounts on minor expenses to making significant, long-term improvements to your overall financial position.
Key priorities are likely to include:
- Maximising superannuation contributions if possible – and using carry-forward amounts from prior years if applicable to make even larger superannuation contributions
- Sale of business assets (creating taxable income) where you previously claimed 100% of their purchase price as a tax deduction using temporary full expensing
- Reviewing whether you can still allocate trust distributions (from your Family Trust or Discretionary Trust) to adult children or parents as a result of the recently released ATO Tax Rulings
- Bringing forward deductible expenses
- Deferring taxable income
- Managing capital gains
- Using a Discretionary Trust or a “bucket company” to cap your tax at 25% or 30%
By legally reducing your tax liability, you free up cash flow that can be redirected toward what matters most to you. Imagine what you could do with your tax saved! You could:
- Reduce your home loan
- Top up your Super
- Save for a holiday
- Deposit for an Investment Property
- Pay for your children’s education
- Upgrade your car
Pricing and Next Steps
Contact us today to discuss our Tax Planning process. Before proceeding we will provide a tailored engagement proposal for you to accept.
The sooner we get started, the sooner we can help you save tax.