Wondering how to minimise tax or potentially increase your tax refund? There are many legitimate methods and concessions you can utilise to reduce your tax burden to the legal minimum.
Imagine what you could do with your tax saved!
- Reduce your home loan
- Top up your super
- Go on holiday
- Put a deposit on an investment property
- Upgrade your car
- Renovate your home
But you need to activate your tax plan prior to the end of the financial year (30 June 2024), together with meeting your legal requirements as explained below.
Trustee resolutions deadlines
If your duties as trustee include creating and implementing a trustee resolution (also known as a trust distribution minute), then this must be prepared by 30 June to meet your legal and tax obligations. Preparing your minutes after the end of the financial year is ineffective and risky, as you may be subject to 47% tax.
We recommend commencing tax planning asap, giving yourself enough time to assess the trust’s income, expenses, and capital gains or losses. Accurate figures will aid in legally minimising tax liabilities and allowing access to tax concessions or exemptions when distributing income to beneficiaries.
It’s in your best interest to book a tax planning meeting with your accountant in April/May. In preparation for this meeting, ensure your books are reconciled and up to date, and that you provide accurate estimates to the end of the financial year.
Even if you don’t avail of the full tax planning service, you’re still legally obligated to prepare trust distribution minutes prior to the EOFY.
Ask NGL Business Services about our tax planning service
Our interim Tax Planning service will assess all your tax minimisation options, while preparing a tax estimate for you and your related entities. We can also help you determine your obligations and help you stay compliant.
Capital gains tax when selling overseas assets
Did you know that when a foreign resident activates Australian residency for tax proposes, most of their assets, including overseas assets, must be valued at the date of Australian residency?
We recently assisted clients who had who moved to Australia during the Global Financial Crisis. As the values of their overseas assets had dropped significantly, the new cost base (i.e., the value when they became Australian residents) was lower than the actual cost of the property. Therefore, on sale, they ended up being assessed on a capital gain tax (CGT) even though the property had actually reduced in value from the initial purchase! These values become the new cost base for CGT purposes. Thankfully, we knew the best strategies to use and the concessions we could access of to help mitigate the CGT burden.
Employee vs. contactor arrangements
Employee vs. contractor issues have always been around and are a hot topic for the ATO. If you are considering a switch from one to the other, it is vital you have a chat to your accountant first.
Business Advisory Services
We offer a comprehensive business advisory service which we tailor to your needs and requirements. It is always a good idea to catch up with your accountant on a regular basis. This service can cater for most aspects of your business, including but not limited to:
- Cashflow and forecasting
- Budgeting
- Business coaching
- Business plan
- Ongoing business valuations
- Review of lending, interest rates, insurances and more
- Succession planning
We can conduct these meetings monthly or quarterly depending on your requirements and the value we can provide.
Get in touch if you would like to discuss further.
April 2024 important due dates
21 April 2024
- March monthly BAS
28 April 2024
- March quarter BAS
- March quarter PAYG and GST instalments
- March quarter SGC
Extended due date
- BAS agent extension for March BAS if lodging by online services for agents or PLS is 26 May 2024 instead of 28 April. Contact your accountant should you require an extension.