Question #6: What Can I do to Reduce my Tax?

Hi, my name is Tony Dimitriadis, I run an accounting & advisory firm and I specialize in helping ambitious builders and property developers build a financially rewarding tax-efficient lifestyle business.

The sixth most popular question I get asked in the lead up to 30 June is “What can I do to reduce my tax?” Well, the short answer is there are numerous options. A more detailed answer is tax planning.

Tax planning is a very beneficial tool for business owners and is a very proactive way of minimizing your tax liability. There are many options available, although not every option is going to be available t you in your particular situation. So examples of some of the things you can do are:

  • The first sales income to post 30 June
  • Pay all non-business expenses before 30 June.
  • Bring forward any expenses that would otherwise be payable post 30 June.
  • Prepay interests on all business and investment loans
  • Write-off any bad debts then you’re not likely to collect
  • Purchase business assets where required and receive accelerated depreciation.
  • Contribute to your superannuation up to the concessional contributions limits.

Now there are many many more and you probably should speak to your trusted tax advisor to make sure that every possible option is covered for you and you’re minimizing your tax to the maximum you possibly can.

So I hope you found this useful. Remember, tax planning is very very important not just in the lead up to 30 June but all year round.

So thank you for joining me. Look forward to speaking with you soon bye for now.

Tony Dimitriadis