Tax Saving Strategies

[J_D]

Was just having a read of the following article:

http://money.ninemsn.com.au/article.aspx?id=575104

I've often heard alot of people talking about concentrating alot of energy on minimising tax and trying to get the best tax benifits they can out of a company. I've also heard (and straight from my accountant) that it's best to concentrate on your business making as much money as possible before getting carried away with tax etc.

Some of these steps might be obvious but what 'loopholes' or areas are you guys taking advantage of (without getting too personal)

JD

[Brendan]

Great article J_D.

I agree with your accountant, you should not form your business or cash flow on what tax benefits you get.

If that was the case then you are at the governments peril, imagine your whole business was based around using tax cuts to be able to offer lower margins to your customers, then the government changes that particular tax break.. your whole business model is then flawed.

In saying that, you still must be aware of the tax breaks that are available to small businesses, use them as 'bonuses' to your bottom line!

[dkbook]

I agree, you can not structure your business around tax breaks. However, there are a lot of breaks you can benefit from if you do your homework and keep your records in good shape.
One such would be leasing equipment / motor vehicle etc. instead of using an overdraft or loan to fund them. Usually the entire payment is tax deductible instead of just the interest component but this could have an impact on your cash flow as the lease payments would probably be somewhat higher than loan repayments.

[justinsigns]

Try to show absolutely every dollar you earn as your turnover/profit will impact on any future loan applications, even if it is property.

As a sole trader, and being in the building & construction industry, we have found alot of benefits when we renovate on a small scale. I doubt we could put a full room on without questions being raised though.

CHP is generally a better way to go for small business as the GST can be claimed upfront - check with your accountant though.