With the end of financial year approaching quickly, NOW is the time to consider the actions you can take before 30 June 2021 to reduce your tax and also grow your wealth.

Many business owners needing to save cash reduced expenses and also reduced their 2021 PAYG instalments to Nil during the COVID-19 period.  Because JobKeeper payments are taxable you may find that you have generated profits for tax purposes, which means you may have tax to allow for.

For 2021, key priorities are likely to include:

- Maximising superannuation contributions without exceeding the deductible and non-deductible limits

- Bringing forward deductible expenses

- Deferring taxable income to a following year

- Managing capital gains

- Using a Family Trust or a "bucket company" to cap your tax at a lower tax rate

Consider this from your own point of view and imagine what you could do with your tax saved:

- Reduce your home loan (take advantage of current low interest rates)

- Top up your Super for a better retirement

- Save for a holiday (when we can all travel again!)

- Deposit for an Investment, whether property or equities

- Pay for your children's education

- Upgrade your car

NEXT STEPS

Right now, nothing needs to be done.  We'll contact you soon with some thoughts and our own minimisation guide, which is a list of around 50 tax saving strategies.  We don't expect you to work through it yourself though.

We'll then estimate the tax payable without any planning, discuss strategies suitable for you, vary 2020/21 tax instalments if we can, calculate the tax benefits from the planning, and explain how to implement the strategies before 30 June.  If the May Budget has tax changes, we'll update the Plan.  Finally, in July/August, we'll prepare a forecast of Cash for the next year, including tax payable projections so there are no surprises.