What is Tax Planning?
Tax planning is the arrangement of your financial affairs in a way that keeps your tax to a minimum. Tax planning is a legitimate activity so long as you do this within the intent of the law. Due to the introduction of single touch payroll laws, it is now more important than ever before to review the tax considerations relating to your situation before 30 June.
Tax Minimisation Schemes
Tax minimisation schemes that are outside the spirit of the law may attract the attention of the ATO. These are referred to as “tax avoidance schemes or arrangements.” A tax avoidance scheme involves the deliberate exploitation of our tax and superannuation systems. The ATO takes these schemes seriously, and will take action when they are not lawful.
Benefits of Tax Planning
Tax planning should be continuously undertaken by small business owners throughout the financial year. At the very minimum you should be reviewing your tax situation overall prior to the close of the financial year. Visit our blog post to learn about the various ways in which you can minimise your tax depending on your current situation.