Utilize Division 7A loan strategies: Avoid unintended tax consequences when loaning money from private companies by structuring loans correctly under Division 7A.
Take advantage of R&D Tax Incentives: Many businesses overlook the Research & Development Tax Incentive, which offers generous offsets for eligible innovation activities.
Implement a family trust for asset protection: Properly structured family trusts can offer tax advantages and safeguard business assets.
Use loss carry-back provisions: Businesses experiencing losses can apply the loss carry-back scheme to offset past taxable profits, potentially receiving tax refunds.
Strategically distribute dividends: Careful planning of franked dividend distributions can optimize tax outcomes for shareholders.
Claim home office renovations: If part of your home is exclusively used for business, renovations can be partially deductible.
Maximize car-related deductions: The logbook method often results in higher deductions than the cents-per-km method. Educate clients on keeping accurate logs.
Deduct income protection insurance premiums: If the policy directly relates to protecting employment income, premiums are tax-deductible.
Leverage travel expense bundling: Combining personal and business travel correctly can make some expenses partially deductible.
Use the low-value pool for assets: Small business owners can pool assets under $1,000 to claim accelerated depreciation.
Use the six-year rule for CGT exemptions: Even if renting out a former primary residence, the six-year absence rule can maintain the CGT exemption.
Time asset sales strategically: Spreading asset sales over multiple financial years can minimize CGT burdens.
Apply CGT small business concessions: Small businesses have access to CGT concessions that can significantly reduce or eliminate capital gains tax.
Use the 50% CGT discount effectively: Holding assets for at least 12 months qualifies individuals and trusts for a 50% CGT discount.
Transfer assets strategically within a trust: Correct structuring of trust asset distributions can minimize CGT exposure.
Maximize tax-free retirement income streams: Transition-to-retirement pensions can provide tax advantages while preserving super balances.
Use the bring-forward rule for contributions: High-income earners can contribute up to three years’ worth of non-concessional contributions in a single year.
Claim unused concessional contributions: Carry-forward unused concessional contributions can reduce taxable income in high-income years.
Consider re-contributing strategies: Withdrawing and re-contributing super can improve tax-free component ratios and benefit estate planning.
Use SMSF limited recourse borrowing arrangements: These allow SMSFs to invest in property while maintaining asset protection.
Utilize the personal services income (PSI) rules correctly: Many professionals risk ATO scrutiny if they fail to meet PSI compliance requirements.
Leverage international tax treaties: Australian residents earning foreign income can often avoid double taxation using tax treaties.
Structure share buybacks tax-efficiently: Depending on how buybacks are structured, they can reduce CGT rather than being taxed as dividends.
Deduct investment-related borrowing costs: Interest on loans for investment pu
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