1 May 2022

Client Executive Summary

1. Rate increases

We are talking about the following options and strategies including:

  • Consider reverting to interest only loans to maximise cash flow on “good debt” like property, shares and businesses
  • Increasing principal repayments on “bad debt” for example non-deductibles like home loans
  • Reviewing budgets particularly for recurring expenses that are direct debited
  • Business owners who are looking to renew property leases are expecting increasing rents as commercial lease contracts are generally linked to CPI
  • Chat to us about the 3 way forecast for business cashflow modelling

2. Tax position planning for 2022

How well do you know your tax position and is this important to you? 

For our clients who are small to medium business owners maximising deductibles to minimise tax is only one (1) strategy. Let us know if you want to chat more about:-

  • Knowing your tax liabilities so you can reinvest funds back into your business
  • Utilising tax planning strategies and insights to review the structure of your business, untapped profit areas and investment options
  • Assess how any federal budget changes or ATO changes, for example the Trust reimbursement agreements and unpaid entitlements will impact you

3. Discretionary / Family Trust Distribution deadlines

Meeting deadlines.  

As a trustee of a family or discretionary trust, each year you are required to make or resolve a distribution of income to your beneficiaries. The distribution or resolution must occur prior to 30 June 2022. Failure to do so will result in paying tax on all trust income at 47%.

Your trust distribution needs to comply with the requirements of your trust deed. Most trust deeds state that the trustee must make a distribution in order to make beneficiaries presently entitled to income.

This is general advice only and does not take into account your financial circumstances, needs and objectives. Before making any decision based on this information, you should assess your own circumstances or seek advice from your financial adviser, tax advice from your accountants or strategy session with your business coach.