For any earning individual in Australia, it is important to pay taxes at a certain point in the financial year. Though it is mandatory, almost everyone wants to know how they can save some money on their taxes. If you are one of them, this post is for you. You may hire a professional tax planning consultant from any top-rated accounting firm to help you make effective tax planning to reduce a significant portion of your taxes.

Check this post to learn how they can help you in this regard.

What Are the Services Usually a Tax Consultant Offers?

A professional tax consultant has in-depth knowledge and years of experience in taxation laws related to companies and individuals. So, they are the perfect people to help you with filing tax returns according to the appropriate taxation laws.

Some of the services they offer are as follows.

• Preparing and lodging tax returns to the ATO
• Assessing your financial and legal circumstances to reduce your tax liability
• Helping you with various tax-related issues
• Representing you in the process of tax paying

6 Ways a Tax Accountant Can Help You Minimise Your Taxes in Australia

Here we discuss the six possible ways a professional tax accountant can assist you in minimising the taxes in Australia.

A Tax Agent Has Knowledge about all the Legal Obligations

It is important to prepare and lodge your tax return correctly and stay compliant during the tax season. If you have not reported or filed anything properly, it can result in unnecessary delays and fines imposed by the Australian Taxation Office.

Tax professionals know all the legal requirements associated with tax management and can help you receive the highest return while lawfully reducing costs.

Tax Accountants Know What You Can Claim as Deductions

When you need to lodge your return, you must be aware of everything you can claim as tax deductions. This part proves tricky for many Australians. So, you must be careful in this case.

As per laws, you can claim only those deductions that have been incurred for running the business.
Your tax agent will gather all the deductions for you and make sure that you get the most benefits. Accountants know how to make the most out of these deductions and can identify some unique money-saving options that you might not be aware of.

You Can Claim a Tax Deduction on Your Accountant’s Fees

When you hire a professional tax accountant to help you with your taxes, you must pay them a fee. The best thing about it is that you can claim a deduction and receive a much higher return.

It is an excellent incentive for a business that has just started operating.

Accounting Professionals Can Provide You Valuable Finance Management Advice

While there is a range of ways you can use to improve your business’s financial condition, an accounting professional can provide valuable advice on what you should do to increase your return and improve your savings.

• They can assess your financial resources and offer recommendations accordingly to help you make the tax season more profitable.
• Because they have access to crucial financial information about your business, they can advise you on saving, spending, and investing money in a meaningful way. It will help you achieve a better outcome in the following financial year.

Your Tax Agent Can Suggest to Transfer Your Assets into a Discretionary Trust

One of the common pieces of advice most tax planning consultant in Australia offer is that you should transfer all the assets into a discretionary family trust. The reason is that it lowers the overall tax.

In this type of trust, the trustee has complete rights to make their decisions. In other words, they can decide on the amount and the beneficiaries when it comes to distributing capital and income.

For example, if the trustee thinks they can distribute the money to beneficiaries who are included in the lower tax brackets. Also, when the trust makes any capital gains, the trustee can choose to distribute the amount to the beneficiaries who have faced capital losses and those who fall into the 50% capital gains tax exemption. The tax gets reduced in each case.

An Accountant Can Save You Time

When a professional looks after all your tax liabilities, they ensure accuracy and efficiency. It will make the whole process easy and quick and save you ample time. Thus, you can focus on the other business aspects to increase your revenue.

The lodgement deadline will also get extended.

Things to Keep in Mind while Hiring a Tax Planning Consultant

Appointing a tax agent has a range of benefits already discussed. In addition to helping you lodge your tax return timely and accurately, a tax professional can offer valuable advice on the tax consequences related to your future business activities. With their help, you can also develop efficient record-keeping practices to improve your deduction claims.

So, to make sure you hire the best individual for your business, keep the following factors in mind.

• Service charges for most tax agents are not very high in Australia.
• Check whether your accountant is registered with the TPB (Tax Practitioners Board). Not only that, but they must also be a registered member of CPA Australia or any other professional accounting body. This information will ensure that they know all the ethical and professional standards.
• You must keep a trusted and ongoing relationship with your tax accountant as a business owner. It will make them understand your business and finances better, which will, in turn, result in more efficient tax management.
• Make sure your tax agent is updated with the latest industry developments and tax law changes.
• Tax management consultants need to satisfy regulatory requirements to provide you with a high-quality legal service. They have to check your taxation history, ask you questions regarding your expenses, income, and assets, and review your documents like receipts.
• Tax advice is essential for individuals and businesses alike, providing crucial insights into navigating the complexities of tax regulations and maximizing financial efficiency. Professional tax advice encompasses a range of services, including tax planning, compliance, and resolution of tax-related issues. By seeking expert guidance, taxpayers can optimize their tax positions, minimize liabilities, and ensure compliance with ever-evolving tax laws. Effective tax advice involves thorough analysis of individual or business circumstances, identifying opportunities for tax deductions, credits, and exemptions while mitigating risks of audits or penalties. Furthermore, tailored tax advice considers long-term financial goals, helping clients strategize for future growth and stability. In essence, tax advice serves as a cornerstone for informed decision-making, empowering individuals and businesses to navigate the intricate landscape of taxation with confidence and foresight.

Final Thoughts

As per the ATO information, about 74% of taxpayers choose to hire tax accountants to lodge their returns. Considering these professionals’ services, it makes sense to appoint a top agent for your business. Contact any reputed accounting firms Perth for help.