Implement some tax planning!
This does not need to be made into a big deal. If there is a bit of cash leftover at the end of the year, spending it wisely is always a good idea:
- Purchase business assets:
- With the temporary full expensing extended for the 2023 financial year, assets purchased for your business are fully tax deductible.
- What does this mean in $$$? – If you are an individual operating a sole trading business that earns between $45,000 and $120,000 you can save $3,250 in tax by purchasing a business asset worth $10,000.
- Contributing to your Super:
- The same result can be achieved for individuals (including salary and wage) by contributing this money into your super fund.
- Of course, investing in your super fund has an added advantage of compounding interest.
- What does this mean in $$$ – $10,000 put into your super fund today could be worth $215,605.48 in 30 years’ time and also saves $3,250 in tax.
I do however encourage not leaving tax planning until June!
Be organized and maintain a cashbook thought the whole year! Know your income and be financially savvy.
Maintaining a cashbook sounds like some big onerous task, but with today’s beautifully efficient cashbooks it’s really not.
Been financially savvy gives you an extra edge in your business – level up your financial intelligence.
It allows you to respond quickly to ever-changing trading conditions and prevents unexpected surprises. You can also be on top of your tax and organize PAYG Instalments (prepaying your tax) so there are no big bills at the end of the year.
