Many posts here concern the benefits of a tax agent and ability to extract value v's DIY.
Always worth considering that sometimes the quantum of tax is unavoidable. However strategies can often address and improve the timing of tax. Deferral of tax strategies can improve cashflow and delay tax payment. These include:
- PAYG Variation so that employer tax withholding is eliminated or reduced altogether. Diligent records and good timing assist this to be done so that unnecessary deductions from payroll are avoided. Tip : Conservative estimates are better than aggressive deductions. This leave some room for a final refund if things change.
- Tax agent lodgement can attract deferral. etax lodgers have until 30 October to lodge. Tax agents can lodge in May 2015. The client can pay as late as that date in many instances.
- PAYG Instalment variations. Taxpayers hate paying quarterly instalments. An annual instalment option may assist some taxpayers. For those that cannot, these can be varied if they are excessive BUT must be done on-time and with accuracy. Review through the year is important and avoids excessive tax is handed over. The ATO wont pay interest and this can tie up cashflow.
- HELP debt strategies.
- Return lodgement deferral so that PAYG Instalments are also deferred.
- Use of companies to defer final tax. Combined with dividend franking strategies, some benefits can be identified.
- Scrapping deductions for post 1997 buildings and improvements where the IP is being demo'd and rebuilt.
- Prepayment of IO loan interest - May offset a windfall cap gain etc
- Super deduction strategies for those who can claim deductions for super.
- CGT timing strategies eg: Claiming CGT losses to offset gains, timing of when a CGT profit occurs etc.
Always worth considering that sometimes the quantum of tax is unavoidable. However strategies can often address and improve the timing of tax. Deferral of tax strategies can improve cashflow and delay tax payment. These include:
- PAYG Variation so that employer tax withholding is eliminated or reduced altogether. Diligent records and good timing assist this to be done so that unnecessary deductions from payroll are avoided. Tip : Conservative estimates are better than aggressive deductions. This leave some room for a final refund if things change.
- Tax agent lodgement can attract deferral. etax lodgers have until 30 October to lodge. Tax agents can lodge in May 2015. The client can pay as late as that date in many instances.
- PAYG Instalment variations. Taxpayers hate paying quarterly instalments. An annual instalment option may assist some taxpayers. For those that cannot, these can be varied if they are excessive BUT must be done on-time and with accuracy. Review through the year is important and avoids excessive tax is handed over. The ATO wont pay interest and this can tie up cashflow.
- HELP debt strategies.
- Return lodgement deferral so that PAYG Instalments are also deferred.
- Use of companies to defer final tax. Combined with dividend franking strategies, some benefits can be identified.
- Scrapping deductions for post 1997 buildings and improvements where the IP is being demo'd and rebuilt.
- Prepayment of IO loan interest - May offset a windfall cap gain etc
- Super deduction strategies for those who can claim deductions for super.
- CGT timing strategies eg: Claiming CGT losses to offset gains, timing of when a CGT profit occurs etc.