Why would you require end of year tax planning?

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Why would you require end of year tax planning? 

Around this time of the year Chan & Naylor undertakes a process of review of current financial year activities with a number of it’s clients.  The purpose of this is to prepare for a scenario of likely levels of profitability and how that profitability may be allocated in the most tax effective manner.

Who would benefit from such a process?

  • Any business operating though a business structure (company or trust) with anticipated profits and cash flow;
  • Sole traders with cash flow capacity;
  • Self Funded retirees with likely tax payable; or,
  • Even higher income PAYG earners.

Through a process of review Chan & Naylor may be able to assist identifying particular issues:

  • where possible income may be deferred or expenditure brought forward;
  • whether the business has met or is meeting it’s existing superannuation commitments or whether they could be maximised;
  • ensure all Business Activity Statement and other statutory or business commitments have been undertaken;
  • how best to remunerate members of a business taking into consideration, such issues as workers compensation, payroll tax, franking credits, etc; or
  • whether individuals may have opportunities to maximize their superannuation contributions to reduce income.

In some instances there may be little that can be achieved for the current financial year but Chan & Naylor may be able to identify means of reducing income for the following tax year and beyond.

Please contact your client manager should you wish to consider this option.


The Benefits of an Income Tax Variation Application

Another activity that Chan & Naylor undertakes at this time of the year is the submission of applications for 1515 PAYG Variation Certificates for the next financial year. The 1515 Application is to provide your employer with an authority from the Australian Taxation Office to reduce the amount of PAYG withholding from your regular salary.    This is usually in expectation of a significant difference between your normal salary and your likely assessable income for a given year often brought about by a negatively geared property investment.

Related:  Capital Gains Tax: improvement threshold for 2013/14

The benefit of this is that is increases your amount of “take home pay” to assist you with the ongoing costs associated with a negatively geared property, primarily the interest expense.

So if you have purchased your first investment property during the current financial year or have ongoing negatively geared property investments now is a good time to be arranging to have your 1515 Applications prepared.

Please contact your client manager should you wish to have a 1515 Application prepared on your behalf.

Clive Nelson

Partner, Chan & Naylor Parramatta

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