Minimise Your Business Tax This Year

We all want to avoid paying too much tax.  Luckily, according to ABN Tax, there are some simple things you can do to minimise your income tax for the 2011 financial year:

  • Consider delaying sales invoices (where possible) to 1 July 2011. This will mean the income is accounted for in the next financial year- but in many cases the costs are borne in the 2011 financial year.
  • Consider bringing forward any purchases that are necessary in the next month to prior to 30 June 2011. This will increase your expenses prior to 30 June and therefore decrease your tax payable.
  • Ensure you pay your Superannuation Guarantee commitments prior to 30 June. Super is only deductible once paid, so paying it before 30 June maximises your income tax deductions.
  • Write off any bad debts that you are unlikely to collect from your debtors prior to 30 June 2011. This ensures the income is not taxed in the 2011 financial year.
  • Do a physical stocktake on or around 30 June 2011. This will allow for any spoilage, theft or obsolescence to be identified and written off.
  • Consider bringing forward any plant and equipment purchases to prior 30 June 2011. Small businesses (typically businesses with less than $2 million turnover) are able to claim a 15% depreciation deduction for the whole year.
  • Additional payments to business owners superannuation funds are tax deductible up to the concessional contribution cap limits. You should seek our advice about additional payments prior to 30 June 2011.
  • Consider the timing of any capital asset disposals you are contemplating. They may be better held over until the next financial year if your income is likely to be lower next year. Consider also whether any capital losses should be crystallised. Be mindful of having held assets for 12 months to realise the 50% general discount in entities other than companies.

About ABN Tax

ABN Tax is a fully staffed firm that provides accounting and taxation services exclusively to Australian Bookkeepers Network (ABN) members and their clients. We work collaboratively with bookkeepers to provide clients with competitive prices, greater efficiencies, the highest quality of advice, and excellent levels of service. ABN Tax has a unique business model which differs to most accounting and taxation firms in five key areas.

1. We give the bookkeeper a central role in managing the client relationship.

2. We charge fixed prices and we tell you what they are before we start the work.

We have turnaround times that we commit to and stand by.

We don't charge clients to talk to us over the phone.

5. We deliver our products and services electronically.



For further information on ABN Tax, please:

- Visit our web site at;

- Contact your bookkeeper; or

- Call us direct on 1300 622 750.