03 Feb Tax Planning Can Save You Thousands
Tax planning not just making us money – Let me prove it.
February is a good time to start thinking about how much tax you want to pay this year. With the right advice, you may be able to cut thousands of dollars off your tax bill this year. One of the issues I face though when speaking to clients is they don’t want to pay for the review so I have an idea:
If I undertake a tax review and don’t end up saving you the entire cost of my fee then I will not charge you a cent.
Small to Medium Business is the Low Hanging Fruit in the Tax Battle
The Australian government seems set on a path to recover as much tax as it can from Australian businesses. While that is not an unreasonable objective we have found that the typical Aussie business is increasingly paying more than they have to through both direct and indirect measures.
For example, the construction industry is considered a tax risk because there is plenty of scope for cash payments. The problem is the government has introduced the Taxable Payment Reporting regime which only taxes those already doing the right thing. By that I mean, if you are operating outside the system the TPAR will not help the Tax Office collect tax from you, it merely results in additional compliance costs for genuine businesses. The proof: Thousand’s of subcontractors simply provided the Bunnings ABN as their own. The ATO were none the wiser with the reported information and certainly never collected any more tax from those creative tradies.
This regime has been so successful, according to the ATO, they are now planning to roll it out across other industries including the cleaning industry and others seen as easy targets.
There are many other examples where the government has simply got it wrong and their focus penalises genuine businesses.
What Can Aussie Business do to Reduce Tax – Legally?
Luckily there are plenty of ways to reduce your tax burden.
- Do you understand the implications of your trading structure on your tax liability?
- The top tax rate for an individual sole trader is 49%. With the right structure and the same income we can potentially reduce the top tax rate to 27.5%.
- Are you aware you pay your children up to $20,000 tax free?
- If you are earning $80,000 per annum and your top tax rate is 32.5% then this strategy could save you $6,500.
These are just a couple of ways we can help you pay less tax and all it needs is a little planing. I am so confident most small to medium businesses are paying too much tax that I will guarantee the results.
If I can’t save you enough tax to pay my fee, I will do your review for free! Just call me (07) 54489600
What Are You Waiting For?
Tax planning can pay for itself many times over. February is the ideal time to start to think about how much tax you want to pay so if you think you are paying too much tax then get in touch.
For more information give me a call in the office on (07) 5448 9600 or click here to drop me a message on firstname.lastname@example.org.