Tax planning talking points: Have you added these changes to your tax planning checklists yet?

As we approach the end of the financial year you might be feeling under the pump – lodgement deadlines are approaching, the budget is only weeks away, and you could be snowed under with last-minute compliance activities. Of course, we don’t need to tell you how important tax planning is, but with all of that still to get through, it’s easy to let proactive discussions fall to the wayside.

However, as busy as you are, there are a host of initiatives, changes, and new legislation that you should be considering, calculating, and touching base with your clients about before 30 June to ensure they (and you) are in the best position possible when it comes to annual processing.

Here are just 3 of the numerous new additions to our tax planning checklists that we’d recommend you spend time considering:

  1. Increase the small business entity turnover threshold

A new measure has provided an extension to certain small business concessions to those entities that have an aggregated turnover of less than $50 million per annum. In addition, from 1 July 2021 newly eligible businesses have access to another range of SBE concessions. Have you updated your tax planning checklists with the new levels and prompts for deductions newly eligible businesses may now be able to access?

  1. Tax rate changes for base rate entities

From 1 July 2020, the tax rates for Base Rate Entities (SBE entities with an aggregated turnover of less than $50 million) has changed. A tax rate of

  • 26% applies for the 2020 – 2021 income year; and
  • 25% applies for the 2021 – 2022 income.

Have you factored in what actions clients should make before 30 June or defer to the new financial year to maximise this change?

  1. Temporary full expensing of depreciating assets

Businesses with an aggregated turnover of up to $5 billion, may be eligible to immediately deduct 100 per cent of the cost of eligible depreciation assets from 7.30 pm AEDT on 6 October 2020 until 30 June 2022.

Have you updated your calculations to reflect the impact of such deductions and discussed the timing of key purchases with clients?

Of course, there are a number of other important individuals, business, and superannuation considerations clients should be considering ahead of 30 June. It’s a great time of year to send your client base a newsletter outlining the key changes and points to note, and follow up with a phone call to discuss their estimated tax position.

Our tax planning template pack includes all of the questionnaires, templates, and checklists you need to carry out tax planning activities efficiently, and have proactive client conversations effectively. The template packs even include a detailed newsletter template you can customise and send to your clients and a meeting agenda for those more detailed discussions. Buy the Template packs here

Ready to jump into tax planning? Our template pack includes everything you need:

  • Business Clients Checklist 2021
  • Client Meeting Agenda
  • Client Newsletter 2021
  • Income Tax Changes Reference 2020
  • Individual Clients Checklist 2021
  • Primary Production Questionnaire
  • Tax Planning Recommendation for Business Clients – Email Template

Plus many more! Buy the template pack here. 

If you’re yet to update your own work papers for these considerations and calculations, our Smart Workpapers are maintained and regularly updated by qualified CAs and CPAs. We’ve done the heavy lifting so you can quickly and easily undertake 2021 tax planning calcs and start talking to clients sooner. Want to know more about how Smart Workpapers can make light work of your tax planning time? Watch our tax planning webinar here or contact us to learn more.