Tax Planning and Business Advisory

Tax Planning Is Not The Same As Tax Return Preparation

Tax planning is not the same as tax return preparation. A tax return records what happened. Tax planning determines what should happen before the financial year ends so that the tax outcome is the best legally available.

Details

Linix Accountants provides proactive tax planning and business advisory services for SMEs, professionals, and startups from the Alexandria office.The most effective time to have a tax planning conversation is before the end of the financial year, when there is still time to act. Deferring income, accelerating deductions, timing asset purchases, and making superannuation contributions all need to be completed before 30 June.Business structure review is a recurring part of advisory work for growing businesses. The structure appropriate for a $200,000 sole trader is often not optimal at $500,000 turnover or when the owner wants to protect personal assets.

Additional Information

Division 7A rules governing loans and payments from private companies to shareholders require careful management to avoid deemed dividend treatment.Linix provides business advisory services covering financial performance analysis, profitability improvement, cash flow management, and growth planning.

Visit Main Website Contact Us

Frequently Asked Questions

business3

The right structure depends on your revenue, risk profile, tax position, and long-term plans. A sole trader structure is simple and low-cost but provides no asset protection. A company provides asset protection and a flat 25% tax rate for base rate entities, but involves ongoing ASIC and accounting compliance costs. A trust provides income distribution flexibility and asset protection but is more complex to administer. Linix advises on business structure as part of its advisory service.

Linix Accountants in Alexandria provides accounting and advisory services specifically suited to startups and early-stage businesses, including advising on the right business structure from the outset, setting up accounting systems, managing initial BAS and tax obligations, and providing ongoing advisory support as the business grows.

Division 7A is the tax legislation that governs loans, payments, and forgiven debts from a private company to shareholders or their associates. Where a company provides money to a shareholder without a complying loan agreement in place, the ATO treats it as an unfranked dividend, creating a tax liability the shareholder did not anticipate. Getting Division 7A arrangements right from the start is significantly less costly than correcting them after the fact.

tax2

Salary sacrifice is an arrangement with an employer to redirect a portion of pre-tax salary into superannuation as a concessional contribution. The amount sacrificed is taxed at 15% inside super rather than at the individual's marginal income tax rate, which can be as high as 47%. For someone on a 39% marginal rate, salary sacrifice saves 24 cents in tax for every dollar contributed, up to the $30,000 annual concessional cap.