Legitimate, structured tax planning for individuals, families, investors and business owners in Oxley and across Brisbane — plan ahead, not at tax time.
Paying the correct amount of tax is important. Paying more tax than you are legally required to pay isn't. Australian tax law provides a range of deductions, offsets, concessions and tax-planning opportunities that may help individuals, families, investors and business owners reduce their tax liabilities legally. The challenge is knowing which tax rules apply to you. At TaxAssist, we provide professional tax planning and tax advice from Oxley, Brisbane, helping clients understand their tax position, identify legitimate opportunities and plan ahead rather than simply waiting until tax time. Good tax planning is not about avoiding tax. It is about structuring your financial and business affairs appropriately, claiming the deductions and concessions you are entitled to, keeping the right records and making informed decisions before important transactions take place.
Can I Legally Reduce the Amount of Tax I Pay? Potentially, yes. Depending on your circumstances, there may be legitimate ways to reduce your taxable income, make better use of available deductions and concessions, or structure transactions more tax-effectively. The opportunities available to you will depend on factors such as whether you are an employee, investor or business owner; your business structure; the type of income you receive; your deductible expenses; your investments and assets; capital gains and losses; superannuation; GST registration; your family and employment arrangements; the timing of income and expenditure; and available small business concessions.
The important point is that tax planning should be based on your individual circumstances. A strategy that works well for one taxpayer may provide no benefit — or even create unintended tax consequences — for another.
Why Use a Tax Accountant for Tax Planning? The Australian Taxation Office provides extensive information explaining Australia's taxation system and your tax obligations. However, understanding the rules is different from developing a tax strategy specifically for your circumstances. Professional tax planning can help identify opportunities before the end of the financial year or before you undertake a major transaction. At TaxAssist, we review your circumstances and look for legitimate opportunities to help you manage your tax position while remaining compliant with Australian taxation law. Our objective is straightforward: help you pay the tax you are legally required to pay — and ensure you are not unnecessarily paying more.
Tax Planning for Individuals and Businesses in Brisbane Tax planning is not limited to preparing an annual income tax return. Depending on your circumstances, planning may involve reviewing your income, expenses, business structure, investments, superannuation, GST position and future transactions. We provide tax planning and taxation advice for individuals, sole traders, companies, partnerships, discretionary and family trusts, unit trusts, bare trusts, and self-managed superannuation funds (SMSFs). If you operate a business, your tax strategy may also need to take into account GST, PAYG withholding, superannuation obligations, trading stock, asset purchases, business structure and applicable small business concessions.
Tax Planning Before 30 June Tax planning is generally most useful when it takes place before the end of the financial year, rather than after it. Once 30 June has passed, some opportunities may no longer be available for that income year. A pre-30 June tax planning review may consider your expected taxable income, allowable deductions, capital gains and losses, superannuation contributions, business expenditure, asset purchases, trading stock and other transactions relevant to your circumstances. The appropriate strategy depends on your individual tax position, so transactions should not be entered into solely because they appear to offer a tax deduction.
Employing Your Spouse or Family Members in Your Business Can you employ your spouse or another family member in your business? Yes, provided the employment arrangement is genuine and complies with the relevant tax, employment and superannuation rules. If your spouse genuinely performs work for the business, payments may be deductible in appropriate circumstances. However, remuneration paid to relatives or other related parties needs to be reasonable for the work actually performed. Good records should be maintained showing matters such as the person's duties, hours worked and remuneration. There can also be additional restrictions where the business earns personal services income (PSI). Before employing a spouse or family member primarily for tax-planning purposes, it is important to obtain advice relevant to your particular business and income structure.
Capital Gains Tax When Selling an Investment Property Selling a rental property, investment property or second property can result in capital gains tax (CGT) consequences. The taxable capital gain is not necessarily simply the difference between what you originally paid for the property and its eventual selling price. Depending on your circumstances, the CGT calculation may take into account eligible acquisition and disposal costs, certain ownership costs and capital improvements. Individuals and trusts may also qualify for the CGT discount where the relevant requirements are satisfied. Different rules can apply to your main residence, investment properties and properties that have changed between private and income-producing use. This is an area where planning before selling the property can be particularly valuable. If you are considering selling an investment property or another significant asset, speak with us before signing the contract so we can review the potential taxation consequences.
Working From Home and Capital Gains Tax Does claiming home-office expenses mean you will have to pay capital gains tax when you sell your home? Not necessarily. There is an important distinction between simply working from home and using part of your property as a genuine place of business. Your main residence is generally exempt from CGT, subject to the relevant requirements. However, if part of your home is used to produce assessable income in circumstances where occupancy expenses would be deductible, you may only qualify for a partial main residence exemption when the property is eventually sold. If you operate a business from home, it is worth obtaining tax advice before claiming occupancy expenses so you understand both the immediate deduction and the possible future CGT consequences.
Trading Stock and Taxable Business Income The way a business values its trading stock can affect its taxable income. Under Australian tax rules, each item of trading stock on hand at the end of an income year can generally be valued using one of three methods: cost, market selling value or replacement value. The difference between opening and closing trading stock can affect assessable income or allowable deductions, making accurate stock records and appropriate valuation important when preparing your business tax return. Small businesses may also have access to simplified trading-stock rules where the relevant eligibility requirements are satisfied.
Claiming GST Credits If your business is registered for GST, you may be entitled to claim GST credits for GST included in the price of purchases used in carrying on your business, provided the relevant requirements are satisfied. There are also circumstances in which GST credits may be available for certain expenditure incurred when establishing a business or company. Businesses should keep valid tax invoices and accurate records of purchases and GST adjustments.
Tax for Backpackers and Working Holiday Makers Working in Australia on a Working Holiday visa (subclass 417) or Work and Holiday visa (subclass 462)? Working holiday makers are subject to specific Australian taxation rules. If you have worked in Australia, you may need to lodge an Australian tax return. Whether you receive a refund or have additional tax to pay will depend on your income, tax withheld, deductions and individual circumstances. If you are leaving Australia permanently after working here, there may also be tax and superannuation matters that need to be dealt with, including a Departing Australia Superannuation Payment (DASP). We can help you understand your Australian tax obligations before you leave the country.
Local Tax Planning Advice in Oxley, Brisbane Tax decisions can have consequences that continue for years, particularly when they involve property, business structures, trusts, superannuation or capital gains. Getting advice before making the decision can often be considerably more useful than asking how to reduce the tax afterwards. TaxAssist provides tax planning and accounting services from Oxley QLD 4075, assisting individuals, families, investors and businesses in Oxley and across Brisbane.
Want to Find Out If You Could Be Paying Less Tax? Don't wait until after the financial year has finished or a major transaction has already taken place. Talk to TaxAssist about a tax planning review. Contact TaxAssist in Oxley, Brisbane today to arrange a tax planning consultation.
The information on this page is general information only and does not constitute personal taxation, financial or legal advice. Tax outcomes depend on individual circumstances and taxation law can change. Professional advice should be obtained before acting on any tax strategy.
There is no single strategy that applies to everybody. Depending on your circumstances, legitimate tax planning may involve allowable deductions, superannuation, capital gains planning, business concessions, appropriate business structures, trading-stock treatment and the timing of certain transactions. The best starting point is a review of your complete tax position.
Ideally, tax planning should take place before 30 June or before undertaking a significant transaction such as selling an investment property, purchasing or disposing of business assets, changing business structures or making substantial superannuation contributions. Planning beforehand usually provides more options than trying to change the tax outcome after a transaction has occurred.
A tax accountant can review your circumstances to identify deductions, offsets, concessions and legitimate tax-planning opportunities for which you may qualify. The aim is not to artificially avoid tax, but to make sure your affairs are structured appropriately and that you are not paying more tax than Australian law requires.
Potentially. Where your spouse genuinely works in the business, remuneration may be deductible subject to the normal tax rules. Payments to related parties should be commercially reasonable for the work performed, and appropriate records should be maintained. Special restrictions can apply where income is classified as personal services income, so professional advice may be necessary.
Simply working from home does not necessarily affect the CGT main residence exemption. However, using part of your home as a genuine place of business can potentially result in only a partial main residence CGT exemption when you sell the property. The outcome depends on how the property is used and your individual circumstances.
If you sell an investment property for more than its relevant cost base, you may make a taxable capital gain. The actual CGT calculation depends on several factors, including the property's cost base, ownership history, use of the property and your eligibility for concessions such as the CGT discount.
GST credits can be available for some expenditure incurred in establishing or commencing a business, but specific eligibility and documentation requirements apply. Rather than assuming earlier expenses can or cannot be claimed, have the transactions reviewed as part of your first Business Activity Statement or GST review.
Looking for a tax accountant in Oxley to help you understand your tax position and identify legitimate tax-planning opportunities?
TaxAssist Accountants Oxley provides tax and accounting services to individuals, investors, sole traders and businesses from our local office at 94b Cook Street, Oxley QLD 4075.
Our services include individual and business tax returns, tax planning, capital gains tax calculations, investment property taxation, GST and BAS, bookkeeping, payroll, family trusts and self-managed superannuation funds.
Our Oxley team also assists clients throughout surrounding Brisbane suburbs including Corinda, Graceville, Rocklea, Seventeen Mile Rocks, Sinnamon Park, Salisbury, Moorooka, Coopers Plains, Yeronga and surrounding areas.
Tax planning is often most effective when advice is obtained before 30 June or before an important financial transaction takes place.
If you are selling an investment property, operating a business, reviewing your business structure or simply want to understand whether legitimate opportunities exist to improve your tax position, speak with our Oxley team.
New clients can arrange a free 20-minute initial consultation to discuss the accounting or taxation assistance they require.