It’s dangerously close to EOFY, and that means The Financial Foreman needs to make you aware of any new tax-related information in the lead-up to 30 June 2022.

If you have a Discretionary Trust (also known as a Family Trust), it’s essential to keep reading because you need to be aware that you must complete your trust distribution resolutions before 30 June.

Why? Because if you don’t, you could end up paying extra tax of up to 47% of Trust profits.

We could all do with a little extra cash these days.

And, with a little bit of careful planning, reducing your tax may give you the flexibility to do some of the things you may not have thought possible. Not just for your business but to help out with some other personal big-ticket items.

By reducing your tax bill, you can think about:

• Reducing your home loan
• Topping up your Super
• Saving for a holiday (now that we can travel again!)
• Putting a deposit on an Investment Property
• Paying for your kid’s education
• Upgrading your car

Make a plan to make a difference.

Tax Planning involves two critical things: Putting strategies in place to reduce your tax, and planning for your upcoming tax payments over the next 12 months.

To properly help you with your Tax Planning, we need to start now. Here’s a look at what we’ve developed at The Financial Foreman to help you over the next few months leading up to 30 June 2022:

• April – We’ll review your personal income for the nine months to 31 March 2022, estimate your income for the entire 2022 year, and develop some initial tax planning strategies to reduce your tax.
• May – You can look forward to your personal TaxPlan Report. We’ll then have a face to face or a Zoom meeting to discuss our recommendations. We’ll agree on an action plan to get things done before 30 June 2022.
• June – We’ll contact you again to ensure that all important actions have taken place to reduce your tax.

How you’ll benefit.

We’ll forecast your expected 2022 income and tax payable for all individuals and entities in your family group. We’ll then develop strategies to spread your income across your family group in the most tax-effective way — and legally reduce your tax. This will amount to an overall benefit to you as a family group tax reduction.

Putting your TaxPlan into play.

To achieve this extra benefit for you, we will need to:

• Estimate the 2022 taxable income for all individuals and entities in your family group
• Estimate the initial 2022 tax payable for all individuals and entities
• Develop income-spreading strategies to reduce your overall family group tax payable
• Advise you of tax reduction strategies for 2022
• Meet with you and answer any questions you may have about our tax reduction strategy advice

We estimate that the tax savings and other benefits you’ll receive from our advice will be far greater than the price of our TaxPlan service!

Three tips from The Financial Foreman

1. Make the decision to reduce your tax bill
2. Determine what you’d like to spend some extra cash on 
3. Make a plan to get in touch with The Financial Foreman to talk about tax planning

If you’re interested in saving tax, top of your ‘to-do’ list is to book a time to get together with the team at The Financial Foreman. Although our Tax Saving and Tax Planning advice is entirely optional, we strongly recommend it.Call Josh at The Financial Foreman on (08) 7326 3040 and set up an appointment to talk about tax planning and what it can mean for you, your business and your family.