Tax planning is the process of arranging your financial affairs—whether as an individual, trust, company, partnership, or superannuation fund—to legally minimise the amount of tax you pay.

While tax planning is often associated with the end of the financial year (30 June), effective strategies can and should be considered throughout the year. This is especially important when dealing with capital gains events, business transactions, and succession or estate planning.

Proactive tax planning helps you stay ahead of obligations, avoid surprises, and take advantage of opportunities that may not be available after year‑end.

Nine Key Areas to Consider in Tax Planning

Below are nine core areas that taxpayers should review regularly to optimise their tax position:

1. Reducing Assessable Income

Strategies may include timing income, salary packaging, or making use of tax‑effective structures.

2. Increasing Deductions or Tax Offsets

This can involve prepaying expenses, maximising allowable deductions, or ensuring you claim all eligible offsets.

3. Diverting Income

Where appropriate and compliant, income may be directed to entities or individuals in lower tax brackets.

4. Selecting an Appropriate Tax Vehicle

Choosing the right structure—company, trust, partnership, or superannuation fund—can significantly influence tax outcomes.

5. Deferring Capital Gains Events

Timing the sale of assets can help manage taxable gains, especially if future income is expected to be lower.

6. Moving Money Into Lower‑Tax Structures (e.g., Superannuation)

Superannuation remains one of the most tax‑effective environments for long‑term wealth accumulation.

7. Reviewing Your Asset Register

Ensures assets are recorded correctly, depreciation is maximised, and obsolete assets are written off.

8. Reviewing Your Stock Ledger

Stock adjustments can impact taxable income; accurate valuation is essential.

9. Reviewing Your Debtors Ledger for Bad Debts

Writing off unrecoverable debts before year‑end can reduce taxable income.

McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
 www.mcnamaraandco.au/contact-us
 Phone +61 3 9428 1062
 Email admin@mcnamaraandco.au

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