News
At Attune Advisory, we pride ourselves on our strategic thinking in all facets of business, including taxation. Building the right strategy and planning appropriately for tax time could mean big savings, and of course while also ensuring you’re on top of all the compliance required.
With this in mind (as we inch ever closer to June 30), here are some effective tax-planning strategies and tips that can help you be better prepared for THAT day of the year.
Let’s dive in:
Create a win-win situation by increasing your super balance and scoring a tax deduction at the same time by making additional superannuation contributions to your super fund.
For the 2022 financial year, individuals are entitled to claim a tax deduction for any personal super contributions they make – up to$27,500. This is referred to as your “concessional contribution cap”.
The super fund will generally only pay tax at a rate of 15%so if your marginal tax rate is looking like it’ll exceed 15%, contributing to your super fund can be a great tax planning strategy.
Even better, if you are really looking at bringing down your taxable income this year you may be able to take up the ATO’s incentive “carry forward unused concessional contributions” and potentially contribute more than$27,500 and still claim a tax deduction. A few exceptions apply here but if you haven’t contributed the maximum amount each year since 2018 you may have some wriggle room to up the ante this year. Ask your Attune advisor to check this out for you and confirm your eligibility.
PSA! Any super contributions must physically be in the fund’s bank account by 30 June 2022 so always allow a few days for the banks to do their processing.
Timing is everything when it comes to super contributions!
You probably know that your employees’ super for the April to June 2022 quarter is not due for payment until 28 July 2022. But did you know, even though this super relates to the 2022 year, you cannot claim a tax deduction until it is paid – which is generally not until July 2022… i.e. the2023 financial year?
So, bring your tax deduction forward one year and process the super payment before 30 June. Provided you will be no worse-off cash flow wise, this simple little strategy can work well in bringing forward a tax deduction and reducing your current year taxable income.
Of course, we can help you assess your situation to see if this is the right strategy for your business.
This has been extended to 30 June 2023!
In short, it means you can claim an immediate tax deduction for the (business portion) cost of any new assets purchased and installed ready for use. If you can get this done before 30 June 2022, you will get the tax deduction for the 2022 financial year.
This is only available to eligible businesses – generally a business with turnover of less than $5 billion but a few more exceptions can apply. So, if you are unsure of your eligibility status please contact yourAttune advisors and we can check it out for you.
If your business needs any new assets, machinery, equipment, or motor vehicles this strategy can be extremely useful is bringing down your taxable income.
Without question, there’s much more to building an effective tax strategy and plan than what we’ve covered here, so if you’re looking for tailored strategic advice to set you up for next financial year, speak with the team today – give us a call on 1300 866 113 or send us an email to start the conversation, you won’t regret it.
