One of the most productive conversations our Business Advisors have with their clients is during the final quarter of the financial year.
Once the March Business Activity Statement has been completed, generally by mid-April, we then work with our clients on:
1. Tax planning pre-30 June;
2. Cash flow forecasting for the 2026 Financial Year;
3. Strategic planning for the next financial year;
4. Any structure changes of benefit to commence pre or post 30 June;
5. Any business or family changes that require consideration.
Clients who actively participate in these conversations, really can add value to their business and personal financial positions.
With annual tax planning time upon us, here are a few things to think about and discuss with your business advisor well before 30 June. Importantly, effective tax planning isn’t a once-a-year activity when you submit your tax return; it should be a continuous cycle.
Effective tax planning isn’t a once-a-year activity when you submit your tax return; it should be a continuous cycle. Strategies should be maintained, monitored, and continuously assessed for changing circumstances, new tax legislation and compliance responsibilities.
If not fully understood and actively managed, tax obligations can result in additional costs or lost opportunities for businesses. Business owners need to understand the impact that tax legislation has on their business, its cash flow, its directors’ liabilities, and, on returns.
Key areas small to medium businesses should consider:
- Trust distributions, in particular who to effectively distribute to;
- Family remuneration through dividends or other income streams;
- Repayment of Private loans;
- Capital gains tax, including potential CGT roll-overs and small business CGT concessions;
- Tax loss recoupment rules;
- Other small business concessions (e.g. full expensing of the cost of depreciating assets).
Having a clear picture of the current ‘state of play’ for your business and oversight of where you’re headed will help determine future-facing strategies that could minimise your tax liability into the future, such as:
- Deferring Assessable Income
- Superannuation
- Superannuation for Employers
- $20,000 Instant Asset Write-Off
- Trust Distributions and Reporting
- Farm Management Deposits
- Home Office Deductions
Hood Sweeney is a South Australian professional services firm with more than 46 years’ experience. With 140 staff in Adelaide and regional offices in Clare, Whyalla, and Kadina, Hood Sweeney serve more than 3,000 clients, including family businesses, small-to-medium businesses, and professionals. They provide Accounting & Business Advisory, Financial Planning and Finance, Technology Services, Marketing, and a range of consulting services for growing business, through Blue Jam, https://www.bluejam.com.au/. Hood Sweeney's vision is to be the pre-eminent integrated services firm for family businesses and professionals in their areas of industry specialisation, which include Agribusiness, Food, Wine & Hospitality and Healthcare providers.
