It’s planning time! Article by Tina Zawila

Well Easter has been and gone and the year is moving at a rate of knots!  It’s now time to take control and seek out a visit with your business and/or investment adviser for tax planning. We are getting in early this year and encouraging people to plan ahead, to ensure they are in the best tax position possible before the End of the Financial Year (EOFY). Planning ahead also allows more time to manage your cashflows and the impact of any tax payable.

This time of year we see people in cashflow distress due to poorly managed tax liabilities.  We see taxpayers holding off on the lodgement of their 2013 Tax Return until the latest time possible (around May 2014), because they have a significant tax liability.  After they recover from 2013 tax liability they are struck in July with a huge April – June 2014 PAYG Income Tax Instalment, as the ATO issues the instalment based on the recently lodged 2013 tax return with a higher level of income. As business and investment advisers, we understand the immediate stress this causes people. Planning is the answer.

Recently we assisted a couple who were having financial difficulties with their rental properties due to the downturn in the property market in Gladstone and reorganised their tax position to obtain the current years refunds quicker and appease their bank at the same time. They looked ahead, saw a potential financial roadblock and faced up to it early.

It is important to plan your cashflow early to have adequate provision for any tax required to be set aside and expenses you wish to bring forward.  You should incorporate this in your overall tax plan for the EOFY.  There is nothing worse than seeing people undertake major expenditure or make a lump sum payment in superannuation before the end of year so that they can save tax, however, leave themselves short of cashflow to meet their existing taxation or bank liabilities.

At Sothertons we are introducing savvy investors and business owners to strategies that assist in cashflow planning, tax minimisation and cashflow control. Call Steve and Tina today on

07 4972 1300.