Tax Planning 2021

The end of financial year is fast approaching. Business and employment conditions alongside legislative change have thrown new considerations into the tax planning mix.

Helping you achieve prosperity and pay less tax is our priority, so we have created guides for personal tax planning and business tax planning to help you get ahead before the end of financial year.

The world is awash with government stimulus, debt and low interest rates. Asset prices are booming, confidence is high and vaccines are slow.

We see an economy in party mode playing a game of musical chairs. The music has been playing long and loud, confidence is up, housing is up, demand is up, interest rates are down… so put on your dancing shoes and join the party.

And make sure you are ready to grab a chair in case the music stops.

From a tax planning perspective, the primary issue for businesses are the asset write off provisions. For your personal tax the fundamentals of balancing income, managing expenses and making wise and regular investments rarely change.

Did you know? On 1 July 2021 the superannuation contribution rate is increasing from 9.5% to 10%. A handy boost for employees and a small impost for employers. Your annual contribution caps increase from $25,000 to $27,500.

Please take the time to read through the above tax planning links and consider how we can do better when working together. Even if you implement just one good idea, that is one step forward on your path.

We recommend a discussion prior to 30 June if:

1. Shares or other property has been sold (even if settlement is after 1 July) and you would like to know whether you will have tax to pay
2. Your income has changed significantly from last year and you are unsure what impact this will have on your tax liabilities
3. You would like a Tax Estimate to assess your expected tax payable for this year and next
4. You would like to know how the actions explained in our Guides can be applied to improve your tax position prior to 30 June
5. You are thinking of starting a new business, changing the structure of a current business or making a significant investment
6. You have bought new depreciable assets and want to understand how the write offs work for you
7. Your superannuation, personal or business insurance and your will have been neglected for too long or need reassessment
8. You know that your bookkeeping could be better and less of a drain on your time and energy with a discussion with the experts in our bookkeeping team

Important – Trust Minutes
If you have a Trust within your structure, then it is necessary for us to review your financial position before 30 June and prepare a Trust Income Minute/Resolution. If we have not already contacted you about this, please make sure you get in touch.

To arrange a Tax Planning or Financial Planning meeting or discuss further call us on (08)64360900 or email reception@portersca.com