The Top Ten Tips for Tax Time
Reventon’s Insights on Tax, Financial Planning, and Investment Strategies.
Leading financial services firm Reventon has released a comprehensive guide to help navigate the complexities of tax season and beyond.
It offers a wealth of insights on tax optimisation, financial planning, and investment strategies designed to empower individuals and businesses. Reventon's expertise spans various financial considerations, from maximising returns through timely tax lodgements to leveraging the First Home Super Saver Scheme (FHSSS) benefits.
"Our goal is to equip Australians with the knowledge and tools necessary to make informed decisions that can significantly impact their financial well-being,” said Chris Christofi, founder and CEO of Reventon.
"We aim to provide Australians with actionable insights that can bring significant financial benefits and long-term stability."
1) Timely Tax Lodgements and Compliance
The ATO's increasing vigilance underscores the necessity of staying current with tax obligations. This includes timely lodgement of tax returns, activity statements, and superannuation payments to avoid penalties and interest charges. Regular updates and communication with a tax accountant, along with organisational tools and calendar reminders, can help ensure all deadlines are met and penalties are avoided.
"Staying current with your tax obligations and meeting deadlines is essential to avoid costly penalties and interest charges," Christofi said.
2) Role of a Proactive Accountant
A proactive accountant is essential in identifying tax-saving opportunities and ensuring clients know all deductible expenses and tax benefits.
Proactive accountants ask the right questions, provide guidance on all possible deductions, and ensure compliance. Their fees are also deductible, adding to the overall value of professional tax advice.
3) First Home Super Saver Scheme (FHSSS) Benefits
The FHSSS is designed to help first-time homebuyers save for their deposit within their superannuation fund, offering significant tax savings. Contributions to the super fund under the FHSSS are taxed lower than personal income. Proper fund release timing and early application for payment summaries are crucial for maximising benefits within the financial year. Consulting with a financial planner ensures all requirements are met.
4) Tax Deductibility of Professional Services
Tax advice and planning services fees reduce taxable income, providing significant financial benefits. Keeping detailed records of all professional services fees related to tax advice and ensuring these expenses are included in annual tax returns helps in maximising deductions. Engaging qualified professionals ensures compliance and maximises tax benefits.
5) Self-Managed Super Funds (SMSFs) for Property Investment
SMSFs provide a means to invest in property with potentially higher borrowing capacities but come with complexities and costs. Consult with a licensed financial planner to explore SMSF suitability. Ensure a healthy super balance and understand the costs and complexities before investing through an SMSF. Proper guidance and a statement of advice are essential for making informed decisions.
"Investing in property through an SMSF can boost borrowing capacity, but requires careful planning and professional advice," Christofi said.
6) Minimising Capital Gains Tax (CGT)
Minimising CGT is crucial for clients with investment properties, and strategic super contributions play a key role. Plan lump sum super contributions within the financial year to offset CGT liabilities. Consult with a tax advisor to optimise the timing and amount of contributions, which can reduce overall taxable income and CGT liabilities.
"Strategic super contributions can effectively offset CGT liabilities, reducing your overall tax burden."
7) Negotiating Contracts and Expenses
Regularly reviewing and renegotiating contracts can lead to significant savings and reduced operating costs. Conduct annual reviews of all personal and business contracts to identify potential savings. July is an optimal time for renegotiations due to supplier openness. Implement a system to track and review contract renewal dates and terms to negotiate better terms.
8) Tax Variation for Improved Cash Flow
Tax variation allows for immediate tax refunds and better cash flow management. File a tax variation form to adjust tax withholdings for more immediate cash flow benefits. Regularly review and update the variation form to reflect current financial situations. Use the increased cash flow to offset daily interest on loans and debts.
"Adjusting your tax withholdings through a tax variation form can provide immediate cash flow benefits," Christofi added.
9) Property Investment
Reventon's strategy involves using investment properties to pay off personal debts, ensuring continuous tax efficiencies and capital growth. Invest in properties strategically, focusing on areas with high growth potential. Monitor tax deductions and capital gains to decide the optimal time for selling properties. Reinvest gains from sold properties into new investments to maximise tax efficiencies and align with individual financial goals.
10) Cohesive strategies
Find a financial advisor offering integrated services that ultimately help save time and money. Utilise accounting, brokerage, and property investment services under one roof. Coordinate with accountants, brokers, and property experts to streamline processes. Benefit from the collective expertise and collaborative strategies offered by Reventon’s team.
"Reventon's integrated services streamline financial planning, saving you time and money through cohesive strategies," Mr Christofi said.
Visit Reventon's website.
