As we embark on the journey of 2024, it’s crucial to anticipate the evolving landscape of tax laws and business obligations.
The intricacies faced by business owners continue to grow, compounded by the ATO’s vigilant data matching of Government databases, indicating a probable uptick in tax audits in the coming years.
At KMT Partners, we’re proactively gearing up to provide comprehensive support to our valued clients. Our strategic planning focuses on addressing key advice areas. By staying ahead of the game, we aim to navigate the complexities of the ever-changing business and regulatory environment, ensuring that you are well-prepared and well-informed.
Here’s a summary of key considerations that you need to pay attention to in the upcoming months:
Professional Firm Profits Tax
Professionals: A recent ATO Tax Guidance requires professional to document annually how their profits will be allocated and taxed in their family group. If the average tax paid is outside the ATO’s guidance – you may end up in the “yellow zone” or the “red zone” and be the target for an immediate ATO tax audit.
Div7A Loan Elimination
Company owners: With the massive increase in the Div7A interest rate to 8.27% for 2024, taking action now to make minimum annual repayments or even larger repayments could save you thousands of dollars over the next few years.
FBT Return
Lodging a FBT Return – even with a NIL amount of FBT payable – restricts the ATO to a 3-year review period and protects you from the ATO going back unlimited years in an FBT audit.
Tax Planning
We’ll advise you on key actions you need to take before 30 June 2024 to minimise your tax, including consideration of the recent S100A ATO guidance on Family Trusts and splitting out income to family members in the correct way to avoid an ATO audit.
Trust Distribution Resolutions + Company Dividend Statements
These resolutions and dividends should be recorded in writing before 30 June 2023 to prevent the ATO from taxing the Trust at 47% and from saying the dividend wasn’t declared properly – possibly leading to very adverse tax consequences.
Contact KMT advisers for your tax assistance!
About our advisers:
Chrisanthe Lekatis is renowned for her expertise in management accounting, virtual CFO services, and top-tier business advice. She empowers management with tailored strategies for success, streamlining processes to achieve efficient and cost-effective outcomes. Her commitment to building trust and lasting relationships goes beyond professional excellence; it’s a personal ethos. By actively listening and understanding her clients’ businesses and goals, Chrisanthe thrives on collaborative efforts to navigate challenges and collectively achieve their aspirations. Please do not hesitate to reach out if you need assistance.
Michael Fox has been dedicated to the success of his clients, devising comprehensive wealth strategies for both personal and business growth for over 40 years. With extensive expertise in business governance and family business succession, Michael specialises in empowering emerging businesses and family enterprises by fostering renewal, enhancing value and smooth transitions to the next generation. Please do not hesitate to reach out if you need assistance with your business advice.
DISCLAIMER
The information in this paper is not advice. The information in this paper is intended to be educational only. No person should rely on the educational information in this paper in relation to their taxation or financial affairs. You should only undertake transactions following the provision of advice from a suitably qualified adviser who has considered the particular facts involved with your circumstances.
