We all need to remember that we are entitled to pay as little tax as we are legally obligated to. This right is fundamental to the preparation of your income tax returns.
With the end of financial year approaching just around the corner we are fast running out of time to make any meaningful plans for our tax obligations. So, with this in mind I’m urging taxpayers to consider their tax affairs and start planning to legally minimise their tax for this financial year!
Benefits
Nobody enjoys paying tax, we accept a reasonable tax burden in exchange for the society and benefits we enjoy in this amazing country. However there is no need to pay more than your fair share!
The benefits of planning your affairs is to ensure that you are playing by the rules and taking advantage of any opportunity that is available to you to save the tax portion payable by you.
The savings may then be used by you for purposes better suited to your goals in life.
Case study
John is in a position to pay his employees' superannuation guarantee before the end of the financial year. The amount due for the quarter is $10,000.
By paying the $10,000 before the end of June, instead of leaving it until the due date of 21st July, John is able to reduce his tax bill for the year by his marginal rate of tax - which in this case is 42%.
That is a $4,200 saving in tax due for this financial year!
Are you eligible to save tax?
Yes! All taxpayers are eligible to plan their affairs, legally, to achieve the best after tax outcome. By doing nothing you are merely not exercising the rights to which you are entitled.
People that believe that tax planning only benefits the select few are misinformed. Most people can obtain some benefit from properly planning their tax obligations.
If you want assistance with planning your tax obligations for this financial year, take the first step and contact us for any support that you need…
