DFK Better Business Webinar Series

Transcription

1 DFK Better Business Webinar Series #1 - Dynamic Tax Planning Maximising concessions & opportunities Wednesday 7 June, 11.00am (AEST) Guest Speakers: DFK Business Specialists, Steve Heller & Gavin Johns

2 House Keeping; Session will be recorded Presentation will be available at Audience will be on mute Q & A will be taken at the end of the presentation

3 Presented by Gavin Johns and Steven Heller

4 "I don't know anybody that doesn't minimise their tax. I'm not evading tax in any way shape or form. Of course I'm minimising my tax. If anybody in this country doesn't minimise their tax they want their head read.

5 Your presenters today: Gavin Johns, B.Com, CA DFK Hirn Newey, Brisbane Steve Heller, M.Com, FCPA DFK Laurence Varnay, Sydney

6 It s our goal today to: Provide you with fresh insight and steps to take BEFORE June 30 to take full advantage of concessions available to you and your business.

7 We are covering: 1. Benefits of Tax Planning 2. Income Strategies 3. Maximising Expenses 4. Superannuation 5. Capital Gains

8 Resources to download

9 Quick Polls First

10 DFK ANZ DFK Australia New Zealand (DFK ANZ) provides tailored solutions for clients across a complete range of accounting, taxation, audit and assurance, business advisory and consultancy services. DFK is comprised of 15 independent member firms both within Australia and New Zealand, and we are a part of the Global DFK Association with 214 firms across 92 countries. We can seamlessly service clients across the world, a need that s becoming more and more commonplace in today s global economy.

11 What is tax planning and why is it beneficial?

12 It s important to remember: Make sure you keep good records of income received and expenses incurred so that all amounts included in your return can be substantiated. Always play within the rules! For the best outcome, we recommend talking to a suitably qualified adviser

13 Income Strategies

14 Specific AFTA Planning Consideration: For IATA members there is a requirement to deliver a pre-tax profit

15 Income strategies Where legally possible, consider deferring income until the start of the new financial year Delays payment of tax for another year Take advantage of reduction in company tax rate to 27.5% if your turnover is less than $10,000,000 Defer income to take advantage of removal of budget repair levy (2%) for those earning more than more than $180,000 in their own name

16 Trust distribution resolutions Must be prepared and signed no later than 30 June of each financial year Utilise low income beneficiaries such as children aged over 18 Ensure your trust deed is up-to-date and allows you to distribute your income in the most tax effective manner. Talk to your accountant or lawyer regarding this

17 Strategies to assist with cash flow Estimate profit and consider PAYG Instalment Variation PAYG Withholding Variation for employees with negative gearing or large deductions Consider wages payment to owner(s) and benefits of receiving income as a wage vs a dividend/distribution

18 Maximising Expenses

19 Maximising expenses Consider prepaying the following expenses before 30 June: Interest Subscriptions Insurance Rent Other deductible business expenses May be advantageous to offset increased sales and therefore reduce tax

20 $20,000 instant asset write off $20,000 small business write off extended to 30 June 2018 Be aware - not all assets are eligible for this concession

21 Bad debts Writing off a bad debt means you can reclaim the GST and any income tax paid on the sale ATO has stringent guidelines for writing off bad debts

22 Superannuation

23 Superannuation (Employer Considerations) Superannuation is deductible when paid Consider prepaying April to June superannuation contributions to obtain tax deduction Ensure you have made your contributions well before 30 June so the amounts clear the bank prior to the end of financial year Review your year-to-date employer superannuation contributions to ensure compliance with the Superannuation Guarantee Review your reporting obligations. E.g. Reportable Employer Superannuation Contributions

24 Superannuation (Employee & Self Employed) Salary sacrificed concessional superannuation contributions are generally deductible and can provide a tax saving for those that are personally taxed at more than 15% per annum From 1 July 2017, the amount of concessional contributions that can be contributed to super will be limited to $25,000 for all individuals, regardless of age. Prior to 1 July 2017, the concessional contributions cap is $30,000 per person per year for those less than 49 years of age and $35,000 for members aged 49 and over. To avoid additional tax and administrative fees, be mindful of the change in the contribution levels. Consider non-concessional contributions as well. These are not tax deductible but may still be advantageous due to the changing rules

25 Capital Gains

26 Capital gains tax Consider timing of the CGT event can the gain be deferred to save tax? Consider 1 year holding rule to take advantage of CGT discount Consider crystallising capital losses to offset against capital gains Consider other CGT concessions or possibility of offsetting gains with concessional superannuation contribution

27 Cloud accounting Consider making the switch now before 30 June Reduce the paperwork and record income and expenses electronically Many software packages allow for greater automation than previously available

28 Some Specific Questions: At what point are sales/commissions recognised for tax purposes especially when operating trust bank account? Is FBT payable when an employee undertakes a famil.?

29 What to do next? For the best outcome, we do recommend talking to a qualified tax professional at DFK ANZ so your individual tax circumstances can be considered.

30 How else can DFK ANZ help? Strategic Planning Workshops Business structure and set up Business valuations Due diligence Accounting, tax, compliance assistance External, non-executive director services Regular coaching meetings

31 Thank you for attending our Webinar *This material is not advice. You should not act solely on the basis of material contained herein. Due to the speed of developments in tax law and the summarised, general nature of this material, we recommend our formal advice be sought before acting in any of the areas covered in this material.

32 Questions?

33 Thank you