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“Of course I am minimising my tax and if anybody in this country doesn’t minimise their tax they want their heads read because as a government I can tell you you’re not spending it that well that we should be donating extra.” — Kerry Packer

We doubt it endeared him at the Print Media Inquiry, but the late Kerry Packer was right – no-one should pay more tax than they have to.

Why This Matters for Business Owners

Paying taxes and understanding government entitlements can be overwhelming, but it’s crucial to make sense of them to improve your financial position. 

As a business owner in Australia, it’s important to ensure you don’t pay more tax than necessary. In this article, we’ll provide practical, actionable advice on how to minimise your tax liability and maximise your tax savings. In particular…

Right now is the time you should be doing some serious tax planning – well before 30 June

By implementing tax savings strategies, you can redirect those savings towards your business growth or building a secure retirement. Or you might like to reduce your debt, top up your super, go on a holiday, put a deposit on an investment property, upgrade your car or renovate your home.

There are endless choices for what you can do with the saved tax, so the money is better in your pocket rather than paying unnecessary extra tax to the government.

At The Hendrie Group, we are passionate about saving our clients tax

Here are 6 of our top tax tips

1. Choose the Right Accountant

• Not all accountants are created equal. Most accountants should be able to prepare financial statements and tax returns, but if you’re a growing business relying on this type of reactive service alone, it could be very costly.
• Look for a tax expert who proactively helps you grow your business and improve your financial position, and doesn’t just tell you how much tax you need to pay.
• At the very least your accountant should be offering you a tax planning service before 30 June every year to see if there are opportunities for you to save tax before it’s too late.
• Ensure your accountant keeps up-to-date with regular tax legislation changes. Ask them what training they do to stay abreast of tax-related changes.
• Consider the value offered by an accountant rather than solely focusing on fees. The right accountant should be an investment in your business.

2. Don’t Donate to the Government

• Minimising tax is essential, as no one should pay more than their fair share. This is something we’re obsessed about at The Hendrie Group.
• Understand the tax law and concessions applicable to your specific circumstances, and what they mean for you.
• Consult with an accountant to explain available tax concessions in plain English. A business can live or die by the quality of their accountant, so make sure your accountant is an expert in business as well as tax.

3. Schedule an Annual Tax Planning Meeting with your Accountant

• Meet with your Accountant in the last quarter of the financial year, ideally before late May or the first week in June.
• Why? We’ll need to implement your tax-saving strategies before 30 June and that takes time in terms of accounting, documentation, possible transactions and so on.
• At this meeting you’ll discuss your profits, estimate tax liability, and—importantly—explore ways to minimise your tax bill.
• This meeting can save you significant amounts of money.
• Request a copy of our complimentary 2023 Business Tax Planning Guide to learn 16 strategies you can use to minimise your business tax  for 2023.

Don’t leave it until late June because you will have run out of time for implementation. The proverbial horse will have already bolted.

As well as strategies specific to the end of the financial year, there are other tax-saving strategies that all Australian business owners need to be aware of.

4. Utilise Business Tax Concessions

• Review all available business tax deductions and concessions to reduce your taxable income.
• Explore legal strategies to minimise your tax obligations effectively.
• Seek professional advice to identify tax-saving opportunities specific to your business.

5. Capitalise on Business Sale Tax Concessions

• Understand the tax concessions available on the ultimate sale of your business.
• Be aware of the eligibility criteria and planning requirements well in advance.
• Consult with your accountant to structure your business to qualify for these concessions. The wrong advice could cost you hundreds of thousands of dollars.

6. Plan Early for Sale of Business

• Start planning for tax savings at least three to five years before selling your business.
• Seek advice on meeting the eligibility criteria for tax concessions.
• Review and optimise your business structure to ensure you can take advantage of tax-saving opportunities.

Paying less tax in Australia is a realistic and reasonable goal for many business owners. Adopt the strategies outlined in this article to minimise your tax liability so you can redirect those savings towards growing your business or securing a comfortable retirement.

Your next step

Tax planning really is essential for any proactive, ambitious business owner. 

Get in touch with us and let’s make a time to have an initial chat.

In the meantime, remember to request a copy of our complimentary 2023 Business Tax Planning Guide to learn 16 strategies you can use to minimise your business tax  for 2023.

The Financial Freedom Wheel™

Managing your finances and staying on track with your money, tax and investments can be hard. With so many moving parts these days—in an increasingly complex and technological world—it can be hard to know where to start or what to do next.

That’s why we’ve developed our 8-step Financial Freedom Wheel™ methodology. 

Developed off the back of our 40+ years in advising clients on how to manage their money, reduce their tax, grow their wealth and create a great lifestyle for themselves and their families, we identified the 8 most important aspects that you need to plan and manage well, in order to reach financial freedom.

We’re so passionate about the Financial Freedom Wheel we wrote a book about it! 

Download a free copy of the Financial Freedom Wheel™ Worksheet here.