How would you like to legally reduce your tax by $500, $1,000 or more?
Here’s how to do it …
The Strategy behind Tax Planning
The tax you pay depends on your taxable income (all assessable income less allowable tax deductions), and the tax rates that apply to that income.
Therefore, your tax is reduced if you:

  1. Reduce your income, or
  2. Increase your tax deductions.

Seeing we all want to earn more, reducing your income often isn’t an option! But deferring income, and increasing your tax deductions, definitely is. Below we have given you links to two Tax Planning Flyers which both list out a number of small strategies that if employed now can add up to a handy tax saving for 2013. One Flyer is specifically for Business Owners, the other is for all Individual taxpayers. Use these as a guide, but please CONTACT US if you have any questions or uncertainties about any particular item.
To illustrate … If you need something over coming months that is classified as a tax deduction, it makes sense to bring this purchase forward and buy it in June. You then get the tax deduction this year, and improve your upcoming tax refund (or reduce your upcoming tax bill).
And this year, for Business Owners, the best example is a new Motor Vehicle!
You can now buy a car on 30 June and even though you have only owned it for one day, you get an immediate tax deduction of $5,000!
PLUS, you still get to depreciate the car, so if you qualify as a Small Business (ie. have annual turnover under $2 million) you get a further immediate deduction equal to 15% of the purchase price. Again, this is even if you only owned it for one day!
Finally, if you are registered for Goods and Services Tax (“GST”), you can also claim back the GST paid on the purchase price in your June Business Activity Statement.
Speak to us if you would like to take advantage of this strategy and we will confirm your eligibility.
(Warning: Don’t fall into the trap of buying something just because you want a tax deduction for it. We only advocate incurring expenses to obtain tax savings if you were otherwise going to incur that expense at some later stage, or if the outlay is otherwise a sound expense or investment for you and / or your business.)
Your Tax Planning Strategy Checklists –

  • Business Owners CLICK HERE for our Tax Planning Flyer for Business Owners
  • Individuals CLICK HERE for our Tax Planning Flyer for Individuals

We will be in touch with all our Clients shortly to discuss your year end tax planning process and strategies. So help us to help you and use this weekend to start thinking about your earnings this year and what strategies you would like to consider.
Speak soon!