A tax return mainly tells us what has already happened.
Tax planning looks ahead.
That difference matters because sometimes there are decisions that should be considered before the end of the financial year or before a major transaction takes place.
What Is Tax Planning?
Tax planning involves looking at your circumstances, expected financial results and upcoming decisions so you understand the potential taxation impact before acting.
It is not about avoiding tax.
It is about understanding your position, considering legitimate options and planning your cash flow.
When Might Tax Planning Help?
You may benefit from a tax-planning discussion if:
your business has had a strong year
your profit has changed significantly
you're considering purchasing equipment
you're thinking about changing business structure
you're planning to sell an asset
you're making a significant investment
you're worried about how much tax may become payable
cash flow is tight
you simply don't want tax to come as a surprise.
How SKC Accounting Can Help
Depending on your circumstances, we may assist with:
year-end tax planning
reviewing expected taxable income
discussing the timing of relevant income and expenditure
capital expenditure considerations
taxation cash-flow planning
reviewing available concessions where applicable
discussing business-structure considerations
considering upcoming transactions
identifying matters requiring specialist advice.
A Simple Example
Imagine your business has had a much stronger year than expected.
If you only discover the tax outcome when the return is prepared months later, you may have little opportunity to plan financially.
A tax-planning discussion before year-end may help you understand:
“Based on where things currently stand, this is roughly what we should be preparing for.”
That allows you to plan your cash instead of receiving an unpleasant surprise later.
Common Questions
Can't find your question? Email us.
When should tax planning happen?
Ideally, before major decisions are finalised and sufficiently before year-end to allow useful planning.
Is tax planning only useful for large businesses?
No. Small businesses can benefit considerably simply from understanding expected tax obligations and planning the cash required.
Does tax planning guarantee I will pay less tax?
No.
The objective is to understand your position, consider lawful opportunities that may apply and make informed decisions — not promise a particular tax outcome.
Clients Using Tax Planning Often Also Need
Continue Learning
How Much Should I Put Aside for BAS and Tax?
Why Is My Taxable Profit Different From the Profit in My Accounts?
What Is a Tax Loss — and Can I Use a Business Loss in a Future Year?
What Is PAYG Instalments — and Why Is the ATO Asking Me to Pay Tax During the Year?
Service Delivery Disclosure
SKC Accounting Financial & Advisory Services Pty Ltd trading as SKC Accounting is a licensee of Platinum Accounting Australia Pty Ltd (Platinum). Platinum is a Registered Tax Agent (Tax Agent No. 24683431). Tax agent services, including the preparation, review and lodgement of tax returns, and BAS/GST services requiring registered-agent authority, are provided through Platinum under the applicable engagement arrangements. For more information, please visit Platinum Accounting Australia.
Let’s Talk About Your Business
A useful first conversation starts with what your business does, what is creating pressure and what you would like to improve. Book a Complimentary Initial Consultation to discuss the support that may suit your circumstances.