Taxation Plan

Is there anyone who likes paying tax?

Income tax, company tax, payroll tax, GST, FBT, CGT, stamp duty, rates.  It can seem endless.  Unfortunately, we can’t avoid paying tax.  But we can structure our affairs to reduce our tax obligations.

Australia’s tax system is complex, but our tax laws do allow us to structure our affairs in a way that minimises the amount of tax we pay.

A part of being Better Financially Organised is to have a Taxation Plan. It allows us to ensure we minimise our tax obligations, whilst freeing up cash flow.

Your Taxation Plan should align closely with your Financial Information Plan, Risk Plan and Asset Protection Plan as the structure of assets and how they are owned and distributed can significantly reduce the amount of income tax and capital gains tax you pay.

Different structures such as Trusts, Companies, Partnerships and Superannuation all have pros and cons. The important thing about a Taxation Plan is that your specific circumstances are considered, delivering the best result for the short, medium and long term.

Key Areas of a Tax Plan

Maximise Flexibility – Ensure your structure offers sufficient flexibility as your business grows and your family circumstances change. This should allow spreading income across family members, reducing the overall tax payable

Be mindful of an Exit Strategy – Structure ownership so that capital gains tax upon sale of any asset is reduced.  Invest the time in choosing your structure first – It can be expensive to change it down the track

Superannuation - Use superannuation funds as a structure to reduce tax and acquire assets tax effectively. There are also numerous tax benefits available incorporating superannuation, which should be considered as part of your Taxation Plan

Know your Position – Decision making to reduce tax is reliant on knowing your current position and having accurate financial information available to make a decision. This links into your Financial Information Plan

Contact Us at Berkmans Chartered Accountants to obtain your personalised and effective Taxation Plan.

Your Next Step > Business Plan

Previous Step > Asset Protection Plan

Review > Berkmans 7-step Journey to Financial Freedom