Are you paying too much tax in Melbourne?
Many individuals and businesses might be, without even realising it.
The world of Australian tax can seem complicated, and keeping up with all the rules is tough.
But thinking ahead about your taxes, known as proactive tax planning, is more than just following the rules.
It’s a real chance to make your money work better for you.
This is where the knowledge of the best tax accountants in Melbourne helps. Smart strategies, put into action properly, can genuinely improve your financial picture.
1. Start Tax Planning Early
Why delay tax planning? Beginning early in the financial year, ideally by July, allows you to structure finances proactively.
Early planning identifies deductions, tracks expenses, and aligns investments with tax-efficient strategies.
Waiting until the 31 October deadline for individuals or 15 May for businesses risks missed opportunities.
A tax accountant in Melbourne organises your records, ensuring your tax return maximises savings from the outset.
2. Strategic Income Timing And Splitting
Timing income receipts strategically can significantly impact your tax position.
By carefully managing when you receive income, you can potentially defer tax liability to future periods when your tax rate might be lower.
Income splitting involves distributing income among family members to utilise lower tax brackets.
This legitimate strategy requires careful structuring with guidance from tax accountants to ensure it complies with anti-avoidance provisions.
3. Superannuation Optimisation
Superannuation represents one of Australia’s most tax-effective investment vehicles.
Making additional concessional contributions up to the annual cap ($27,500 for 2023-24) can reduce your taxable income while building retirement savings.
The carry-forward rule allows eligible individuals to utilise unused concessional contribution caps from previous years if their super balance is below $500,000.
Tax agents in Melbourne can help determine your eligibility and maximise these opportunities.
4. Business Structure Selection
Your business structure significantly impacts tax obligations, asset protection, and succession planning.
Different structures offer varying advantages:
| Business Structure | Tax Advantages | Considerations |
|---|---|---|
| Sole Trader | Simplicity, lower compliance costs | Personal liability, higher marginal tax rates |
| Partnership | Income splitting potential, simplicity | Joint liability, less flexibility |
| Company | Flat 25% tax rate for small businesses | Higher compliance costs, dividend imputation |
| Trust | Income distribution flexibility, asset protection | Complex administration, resettlement risks |
5. Investment Property Deductions
Property investment offers substantial tax benefits when managed correctly.
Claimable expenses include:
- Loan interest and borrowing costs
- Council rates and land tax
- Insurance and property management fees
- Repairs, maintenance, and depreciation
A comprehensive depreciation schedule prepared by a qualified quantity surveyor maximises claims for building write-offs and plant equipment. Tax accounting in Melbourne specialists can ensure you’re capturing all available deductions while maintaining proper documentation.
6. Effective Record-Keeping Systems
Meticulous record-keeping forms the foundation of successful tax planning.
Implementing cloud-based accounting systems enables real-time financial visibility and streamlines the tax return in Melbourne process.
Professional accountants recommend maintaining organised records of:
- Income from all sources
- Business and investment expenses
- Asset purchases and improvements
- Logbooks and travel documentation
- Home office usage records
Digital solutions integrate with banking systems, automatically categorise transactions, and generate reports for tax compliance, reducing administrative burden while strengthening your position during potential ATO reviews.
7. Avoid Unnecessary Tax Debt With PAYG Instalments
If your income changes during the year, your tax obligations may too. PAYG instalments allow businesses and some individuals to prepay tax instead of getting a surprise bill later.
These payments are based on previous income and may need adjusting if things change. If you’re unsure about your upcoming obligations, an experienced tax accountant can revise your instalments with the ATO.
8. Review Capital Gains Before 30 June
If you’ve sold shares, property, or other investments, you may need to report a capital gain or loss. Planning the sale date and offsetting gains with carried-forward losses can reduce your liability.
This area is complex and requires accurate records. Many accountants will conduct a year-end capital gains review to assess if delaying or accelerating a transaction could help.
9. Take Advantage Of Government Offsets And Rebates
Individuals and small businesses may be eligible for offsets such as the low-income tax offset, the small business income tax offset, or temporary full expenses.
These can reduce tax but must be claimed properly.
Eligibility depends on factors like income, business turnover, and expenses. Registered tax agents in Melbourne can determine which apply and how to use them correctly.
10. Year-End Tax Planning Checklist
As June 30 approaches, consider these strategic actions:
- Review projected taxable income and potential deductions
- Accelerate deductible expenses where appropriate
- Defer income receipts if beneficial
- Make additional superannuation contributions
- Realise capital losses to offset gains
- Prepay eligible expenses for immediate deductions
- Review motor vehicle and travel claims
Start Planning Smarter With KPG Taxation
Ready to improve your tax planning with support from the best tax accountant in Melbourne? At KPG Taxation, we provide customised advice, quick turnaround, and a maximum refund guarantee.
Whether you’re a business or an individual, our trusted tax agents in Melbourne are here to guide you every step of the way. Book a consultation today and see how our strategies can help you keep more of what you earn.
