Tax Planning Strategies for the 2020-2021 FY

As with last year, tax planning will be vital for all individuals and businesses this financial year. Why is this? There have been a number of legislative changes implemented as stimulus measures and you need to make sure you are accessing all provisions available to you.

The current economy is very 2-speed. There are a lot of individuals and businesses still struggling as a result of lock-downs and restrictions, however, there are also a lot of people who have bounced back to better than pre-covid positions.  

To help you understand your options our Accountants at AGS are perfectly positioned to guide you to a position that you can take any steps before the end of the financial year.

To request a call back or a meeting – please click the relevant option in the email you have received and an AGS accountant will be in touch to discuss your circumstances.

 

“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.” –Alexa Von Tobel

 

Some questions you should be asking yourself are outlined below:

For Individuals:

• Are you maximising your work related claims? The ATO has published a series of occupation specific fact sheets This information may help you work out what you can claim
• Do you receive employee shares and pay taxes on vested amounts? Do you understand your taxation obligations? Find out how you can use effective tax structures to potentially reduce tax
• Consider the superannuation co-contribution  – if eligible consider making after tax contributions to your Super Fund to access the Government co contribution
• You may have carried forward un-utilised concessional contributions from a prior year that you can take advantage of – know your limits
• Covid deductions 2021 – what you can / can’t claim this year
• Land Tax concessions are available for eligible landlords providing rent concessions – applications for this close 31 May 2021.

 

For Businesses:

In a recent Xero Blog, they outlined some questions every business owner should be asking their Adviser, some of these more pertinent questions are as follows:

• How will JobKeeper impact me this End Of Financial Year?
• I feel like my business isn’t doing well, can you help me?
• Help, I’m not sure if my business is set up properly?
• How can I make my business more efficient in FY22?
• How can I prepare my business for the financial year ahead? And
• How is this end of financial year different from the last?

 

Below we pose some questions based on the last point above for your consideration:

• As an employer or a sole trader – are you accessing all of the government stimulus measures available to you (both state & federal)? Some of these include:
  • Covid-19 assistance grants
  • Flood relief programs
  • Australian Apprenticeships Incentives Program
  • Jobmaker Hiring Credit
• Changes in income tax rates and STP filings mean any wage adjustments for related parties need to be completed before the end of financial year – not at a later date which was previously the case.
• For companies, loss carry back provisions may affect end of financial year decisions – do you know your entitlement?  
• As a small employer – are you registered and in the Single Touch Payroll (STP) system? This will be compulsory for all employers large and small by 1 July 2021. It is best to take control of this requirement and undertake the change at a time that suits you – rather than needing to implement it at the last minute under a directive from the government.
• Better business plan – full depreciation is still available on assets purchased until 30 June 2022 (car limits still apply)
• Are you ready for the increase to Super Guarantee from 1^st July
• Have you made money or lost money in 20/21? Or not sure? The recovery out of the COVID induced economic uncertainty is the perfect time to review your business plan, or put a new one in place to take control of your future.

For any questions or discussion, you can contact the Accounting Team at [email protected] 

 

Published : 27 Apr 2021