Premier Tax Accountants Based in Melbourne, servicing Australia-wide

Tax planning is arranging your financial affairs to keep your taxes to a minimum.

As for how to reduce taxable income, a registered tax accountant will analyse your financial situation, both now and for the future. By taking into account the specifics of your situation and tax considerations, it is possible to create a tax-efficient plan that minimises how much tax you are obliged to pay.

These considerations can include the amount and timing of income within the financial year, the sources of income and the use of different types of assets, planning for expenditures, and saving for retirement.

Tax planning is an essential part of any wealth management or investment strategy. It is entirely legal when conducted within the intent of the law. Illegal steps taken to minimise tax are not tax planning, but tax avoidance.

At the end of the day, tax planning isn’t about trying to trick the government out of its tax revenue, but about individuals and organisations making use of the tax laws as they exist.

The ATO has many tax concessions to help the Australian businesses that are the engine of our economy, but many of these are hidden without the help of a tax advisor.

For advice and support with your tax return in Melbourne CBD, reach out to our Tax accountants today.

Tax accounting is the preparation, payment and return of taxes for individuals and organisations, as well as planning to minimise the amount of tax that is required to be paid to the government.

A professional tax accountant will make sure that the financial affairs comply with ATO regulations. Effective tax management is necessary to handle the complicated taxes of large businesses or individuals of high net worth, to make sure they are legally compliant.

This includes accurate compiling of documents, handling funds and investments, and forecasting of cash flow and tax finances. The applicable taxes can be as wide-ranging as GST, PAYE and stamp duty.

As well as tax preparation and compliance, tax accountants can also create a tax efficiency strategy for how to reduce taxable income. Nearly every business decision will have implications around how to reduce tax, and taking this into account will help to reduce the tax burden and cut down on costs.

A tax agent can help you navigate tax laws, which are complex and change over time. This means that taxpayers need to rely on the expertise of professional tax accountants to make full use of their tax concessions. Tax advisors are an essential part of any wealth management or investment strategy.

The key for how to reduce tax is the structure of your investments or business ventures. This could be as an Individual or a Partnership, in a Company or a Trust, or through a Self-Managed Super Fund.

Different entities have different tax rates as well as different regulations governing them. A tax advisor will be able to guide you on which makes the most sense for your financial situation.

As well as the overarching structure, the timing of investments makes all the difference. All income earned and expenses incurred will be counted during the financial year, running from 1 July to 30th June.

Planning the timing of when money comes in and out can impact your tax obligations. For example, if you had a high-earning year, defer income to after the 30th of June, so that it falls in the year that is likely to have a lower tax rate. Another tactic is to hold onto assets for at least 1 year before selling them, to benefit from the 50% CGT concession.

Keep in mind that the sale of a property is dated to when the contract is signed, not the settlement day.

Lastly, make sure to make full use of tax concessions. For example, a tax advisor can guide you around salary sacrificing, or redirecting part of your salary or wages into your superannuation fund, to be taxed at a lower rate than your income tax bracket.

You can claim vehicle expenses on your tax returns, for journeys made for work-related purposes, other than the actual commute between home and work.

You can’t claim tax concessions for the costs of driving between home and work, no matter how long the commute is. However, other work-related journeys do count as tax-deductible expenses.

If your place of work is spread across more than one site, then driving between these sites is a tax-deductible expense – as long as none of the sites is also your home. So driving from your usual worksite to a different site, then back to your usual place of work, are all counted as vehicle expenses that can be claimed for tax concessions.

Our tax accountants in Melbourne CBD can help identify other tax-deductible expenses, such as driving to pick up equipment for work and driving to meetings, conferences and other events that aren’t at your usual place of work.

Finally, expenses can only be claimed once. This means that you can’t claim vehicle expenses as a tactic for how to reduce tax if the journey or the costs have already been reimbursed by your employer.

To speak with an experienced tax return accountant in Melbourne CBD, contact Valles Accountants today. Our accounting services are not limited to Melbourne, We are also one of the most specialist tax accountants in Sydney & tax accountants in Brisbane for your personal finances or for your business you run.