Tax planning and strategy

Tax Planning Perth

Tax planning and tax strategy has transitioned from a once-a-year reactive event to an ongoing process that occurs in real-time. And the tax planning team at Westcourt is acutely aware of the need to do tax planning in advance to focus on eliminating tax risks, complying with the tax law, and understanding future opportunities in a business or transaction.

At Westcourt we are committed to protecting our clients from complex tax audits or doing reactive “catch-up work” that is fundamentally ineffective. Our tax planning team is committed to remaining at the leading edge of tax law – both administrative and technical – to ensure that our clients stay compliant and properly structured. And this applies to tax law for SMSF, corporate, trust, individual or partnership structures (and hybrid variations).

Taxation law is in a constant state of flux. The administrative position and view taken by the ATO is continuously changing. Politicians introduce rules on an ongoing basis to transform the economy, and the courts continue to hold decisions on contentious tax cases that impact the wider community. So, this constant change that will present ongoing tax planning risks and opportunities.

This is where Westcourt is different. Our commitment to tax leadership can be seen through the Tax Institute locally and GGI Globally, together with the support of CCH Gold and Business Fitness. And this commitment to technical excellence flows through to the entire team and onto our clients in the form tax planning and strategy advice that creates real-world value.

Some tax planning items, like discretionary trust distributions, are essential and can be incredibly routine for simple, stable businesses. So, the engagement of tax technology to automate tax planning – like using Now Infinity – significantly reduces the cost of tax planning to free up opportunities to focus on tax planning strategies that create opportunities for families in business and the family investment assets.

The tax planning opportunities for property development, retention, and succession are significant for property-focused families. From holding property in a unit trust, SMSF, company, hybrid faith, discretionary trust, or simply in a person’s name, the impact and integration of local, state and federal taxes are significant at an indirect and direct level. A simple example is how, in WA, shares transferred in companies and unit trusts that own real estate under $2m is not subject to stamp duty.

For global businesses seeking to enter Australia, or Australian businesses branching offshore, the power of the GGI global network allows us to consider and provide a single piece of tax planning advice that covers both networks. So, you can be assured that the tax planning strategy work you obtain is focused on the big picture and not just the Australian tax position.

Westcourt is a natural choice if tax matters to you. If you want to ensure you have a fully compliant documented tax planning and tax strategy piece you can be certain our practice will be providing that single source of advice. With a commitment to documenting our tax positions and tax advice, leading-edge tax knowledge, focus on what matters, tax technology solutions and deep global connections, we are a clear choice for people who want tax planning advice and tax strategy advice that makes a real-world permanent benefit – so why not call us today.

Frequently Asked Questions

What is a tax planning strategy?

An Australian tax planning strategy is a set of steps taken to minimize your tax liability and maximize your after-tax income. Tax planning strategies can involve a variety of strategies and techniques, including:

Deferring income: Deferring income to a later financial year when you expect to be in a lower tax bracket can reduce your tax liability.
Maximizing deductions: By claiming all of the deductions you’re entitled to, you can reduce your taxable income and lower your tax bill.
Salary sacrificing: Salary sacrificing into superannuation can be a tax-effective way to save for retirement, as contributions to superannuation are taxed at a lower rate than your taxable income.
Investment strategies: Investing in tax-advantaged investments, such as managed funds or exchange-traded funds (ETFs), can be a tax-effective way to grow your wealth.
Business structure: Choosing the right business structure, such as a sole trader, partnership, company, or trust, can have a significant impact on your tax liability.
Estate planning: Estate planning, including the use of trusts and other structures, can help you minimize the tax impact of transferring assets to your beneficiaries.
Planning for capital gains tax: Planning for capital gains tax when buying or selling assets, such as property or shares, can help you minimize the tax impact of these transactions.

Tax planning strategies can be complex and subject to change, and it’s important to understand the tax laws and regulations that apply to your situation. If you’re unsure about the best tax planning strategy for your circumstances, you may want to consider seeking the help of a tax professional like Westcourt.

What is the purpose of tax planning?

The purpose of tax planning is to minimize your tax liability and maximize your after-tax income. Tax planning involves considering various tax laws and regulations and taking steps to structure your financial affairs in a way that minimizes the amount of tax you pay.

Tax planning can help you:

Save money: By minimizing your tax liability, tax planning can help you keep more of your hard-earned money.
Increase your wealth: By maximizing your after-tax income, tax planning can help you grow your wealth more quickly.
Plan for the future: Tax planning can help you plan for the future by ensuring that you have enough money to meet your financial goals, such as saving for retirement or buying a home.
Comply with the law: Tax planning can help you comply with the law by ensuring that you meet your tax obligations and avoid costly penalties and fines.
Maximize tax benefits: Tax planning can help you maximize the tax benefits available to you, such as tax deductions and tax credits, which can reduce your tax bill.

Tax planning is an ongoing process, and it’s important to review your tax planning strategies regularly to ensure that they remain relevant and effective. If you’re unsure about the best tax planning strategies for your circumstances, you may want to consider seeking the help of a tax professional like Westcourt.

What is the difference between tax planning and tax avoidance?

Tax planning and tax avoidance are related, but they are not the same thing.
Tax planning is a legitimate and ethical process of organizing your financial affairs in a way that minimizes your tax liability and maximizes your after-tax income. Tax planning involves considering various tax laws and regulations and taking steps to structure your financial affairs in a way that minimizes your tax bill.
Tax avoidance, on the other hand, is the use of legal methods to reduce your tax liability in a way that is not in accordance with the intent of the tax laws. Tax avoidance often involves taking advantage of loopholes in the tax laws or using aggressive tax planning strategies that push the limits of what is considered acceptable under the law.
The difference between tax planning and tax avoidance is a matter of intent and degree. Tax planning is legal and ethical, while tax avoidance is not. Tax avoidance can result in fines, penalties, and even criminal charges, while tax planning is a legitimate and acceptable way to minimize your tax bill.
It’s important to understand the difference between tax planning and tax avoidance and to seek professional advice if you’re unsure about the best way to minimize your tax bill. A tax professional like Westcourt can help you understand your tax obligations and ensure that you comply with the relevant tax laws and regulations.