For many, tax season is a stressful sprint, a frantic gathering of documents just before the 30th of June. But what if we told you there’s a better way? The biggest tax savings aren’t found in July; they’re the result of proactive, year-round tax planning. At Everest Tax, we believe tax management should be an ongoing strategy, not an annual headache.
Why Year-Round Tax Planning Matters
Shifting from a reactive “tax time only” approach to a proactive, continuous strategy offers significant benefits:
- Maximise Opportunities: Tax laws, deductions, and concessions can change. By staying engaged throughout the year, you can identify and seize opportunities like making strategic superannuation contributions or managing capital gains before the financial year ends, when it’s often too late.
- Avoid Unpleasant Surprises: No one likes an unexpected tax bill. Year-round planning allows for better forecasting of your tax liabilities, helping you manage cash flow effectively and set aside funds, preventing last-minute financial strain.
- Ensure Compliance & Reduce Risk: Tax regulations are constantly evolving. Ongoing planning helps you stay abreast of these changes, ensuring continuous compliance and significantly reducing the risk of ATO penalties or audits due to oversights or errors.
- Support Strategic Growth: For businesses, tax planning isn’t just about reducing your tax bill; it’s about aligning your tax strategy with your overall business goals. It allows for more informed decisions on investments, new hires, or expansion, ultimately supporting sustainable growth.
- Peace of Mind: Knowing your tax affairs are well-managed and optimised throughout the year provides immense peace of mind, allowing you to focus your energy on what truly matters to you, whether it’s growing your business or enjoying your personal life.
Key Areas for Ongoing Tax Planning
While specific strategies vary, here are common areas we focus on with our clients year-round:
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For Individuals:
- Superannuation Contributions: Reviewing your concessional (before-tax) and non-concessional (after-tax) contribution caps and making strategic contributions to maximise tax benefits and boost retirement savings.
- Investment Property Management: Proactively tracking income and expenses, ensuring depreciation schedules are up-to-date, and understanding capital gains implications for future sales.
- Capital Gains Tax (CGT) Management: Strategically timing the sale of assets (e.g., shares, property) to manage CGT liabilities, especially by leveraging the 50% CGT discount for assets held over 12 months.
- Record Keeping: Maintaining meticulous records of all income, expenses, and asset movements throughout the year, making tax time significantly smoother.
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For Businesses:
- Cash Flow Monitoring & Budgeting: Regularly assessing profitability and anticipating tax liabilities (like PAYG instalments and GST) to ensure funds are available when needed.
- Asset Acquisitions: Timing equipment and asset purchases to take advantage of incentives like the Instant Asset Write-Off.
- Business Structure Review: Periodically assessing whether your current business structure remains optimal for tax efficiency, asset protection, and future growth.
- Bad Debts & Stock Write-Offs: Proactively reviewing and writing off unrecoverable debts or obsolete stock before year-end to claim immediate deductions.
- Pre-30 June Reviews: Dedicated sessions with your accountant to identify last-minute opportunities and fine-tune your tax position before the financial year closes.
Your Year-Round Tax Partner
At Everest Tax, we’re not just here for lodgement; we’re your dedicated tax partner throughout the year. We provide proactive advice, keep you informed of legislative changes, and develop tailored strategies that align with your financial objectives. Our goal is to ensure your tax affairs are always in peak condition.
