LET’S TALK TAX MINIMISATION FOR BUSINESS

10 May 2024, 6:05 am

LET’S TALK TAX MINIMISATION FOR BUSINESS

Here at Finwell Group, we support all businesses and their responsibility to pay taxes and contribute to the broader community and economy in which they operate.

However, we do not believe you should pay more than your fair share of tax.

This is why we encourage all business owner clients to establish an effective tax plan for their business. This includes taking advantage of any actions in running or structuring the business that will minimise these obligations where possible.

After all, you work hard for your income and profit, and we believe you should take all legal avenues available to you in order to optimise the return on your hard work and expertise.

In this article, we’ve highlighted some general areas to consider.

Whether you are an experienced business owner, in your early years of growth or even just considering when you might start a business, the following tips should be useful for you to review and consider.

Of course, every situation is different and we encourage you to speak with your financial advisor and accountant to determine how each is applicable to you and your business.

1. BUSINESS DEDUCTIONS

You should explore the common business deductions such as operating expenses, wages, research & development expenses and depreciation plus any other areas that your Accountant identifies as relevant to your business. 

2. BUSINESS STRUCTURE:

This is often best done before you start your business but may be required as you scale or as situations change over time.

It is advised to explore the tax implications of different business structures such as sole trader, partnerships, companies, and trusts.

You may be able to choose a structure that delivers an improved tax outcome for you.

3. TAX CREDITS AND INCENTIVES

Explore any government incentives applicable to your business or industry and any tax credits available to businesses, such as the research and development tax incentive, small business tax concessions, and export market development grants.

4. MANAGE ASSETS

Explore strategies for managing assets to minimise capital gains tax, such as asset depreciation, capital allowances, and capital gains tax concessions available to small businesses.

5. INTERNATIONAL OPERATIONS

If you operate across international borders there may be options available to you such as transfer pricing, foreign ownership considerations and tax treaties.

6. EMPLOYEE BENEFITS AND FRINGE BENEFITS TAX (FBT)

Focusing on the structure of employee remuneration packages can help to minimise FBT liabilities while maximising tax benefits for both yourself and the employees.

7. SUPERANNUATION

There may be strategies for optimising contributions for yourself and employees, including salary sacrifice arrangements and additional contributions for key personnel.

8. TAX PLANNING AND COMPLIANCE

Proactive tax planning will help you manage tax obligations efficiently and ensure that you comply with Australian tax laws.

In consultation with your accountant and financial advisor, you are responsible for being up to date on legislative changes and we highly recommend you seek professional advice on a timely basis.

9. KEEP RECORDS

At the heart of every good business and every good tax plan is the habit maintaining accurate financial records and documentation to support tax deductions, credits, and compliance efforts.

10. CHOOSE PROFESSIONALS

We encourage business owners to work closely with tax professionals, such as accountants and tax advisors, to develop their tax plans aligned with their specific circumstances and objectives.

With these tips in mind, we trust you feel confident about developing a strong tax plan for your business that helps you pay the tax you owe and optimise your profits and return.

If you have any questions, why not give our team a call and arrange a no-obligation discussion about your circumstances and goals.

Call Finwell Group on (03) 9017 3235 or email better@finwellgroup.com.au

LET’S TALK TAX MINIMISATION FOR BUSINESS