How to prepare for June 30 2019 and what you should consider
If you have enjoyed a good income year now is the time to get a handle on how that is going to translate into tax liabilities and take some pre-emptive steps to minimise them.
As we edge closer to 30 June, business owners are now in a good position to estimate how the 2018/19 year will end up, take a Snapshot of the year to determine what their overall tax liabilities are likely to be and most importantly, what the options are to minimise those liabilities. A good rule of thumb for any business owner is to defer taxes whenever possible but be cautious not to enter into any transactions that otherwise aren’t commercially sound. Legitimate tax deferral strategies can result in applying short term savings to better use, including into working capital to grow revenue and profits for the next year.
If you have enjoyed a good income year now is the time to get a handle on how that is going to translate into tax liabilities and take some pre-emptive steps to minimise them. It is short-sighted to only focus on the tax bill, you need to look at your whole business, the way it operates, its likely future needs, cashflow requirements and the financial position and objectives of the owners.
Preparing a Year End Snapshot Report with your Mazars advisor ensures there are no surprises come tax time.
During a Snapshot Report discussion, you can expect:
- A robust discussion around your 2019 results
- A projection of your Income Tax payable for this year, the amounts and timing of Tax instalments for next year
- A summary of options for the mix of remuneration (and tax to be withheld), dividends (where appropriate) and the tax benefit of Superannuation contributions to be paid this year
- Advice on Tax Planning initiatives that may be undertaken to minimise Income Tax for the current year, including a review of your current structure to determine if anything needs to be changed.
- Determine how Family Trust income is to be distributed so Trustees’ Resolutions can be prepared before 30 June 2019
- A review of your superannuation fund position to determine if any action is required prior to June 30 2019 as a result of the latest superannuation changes.
Where circumstances permit, it would be prudent to consider what superannuation contribution and income stream strategies are available.
Mazars advisers are here to assist business owners to realise the benefits of conducting a Year End Snapshot Report of your business to keep you on track to achieve profit growth well into 2019. Contact your usual Mazars adviser to book your year end planning meeting or contact one of our business advisory specialists.
+61 7 3218 3900
+61 2 9922 1166
+61 3 9252 0800
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.