Tax Strategy

Small to Medium Enterprises (SMEs) with an annual turnover of under $10 million (and particularly those between $2 million and $10 million) benefit most from specialized tax strategy help, as they are large enough to generate significant taxable income but small enough to access, and often overlook, specific tax concessions. While businesses up to $50 million in turnover can access lower corporate tax rates, the highest ROI on tax advisory services often comes from entities restructuring, planning for growth, or managing asset purchases.

Key SME Segments Benefiting Most from Tax Strategy

Turnover < $2 million: Benefit from simplified depreciation, cash accounting for GST, and CGT concessions.
Turnover $2 million – $10 million: Often, these businesses are growing rapidly and are in the prime spot to benefit from restructuring, succession planning, and advanced tax planning (e.g., trust distributions, bucket companies) to manage higher profits.
Turnover < $50 million: Qualify for the 25% lower corporate tax rate, making them highly receptive to strategies aimed at maximizing retained earnings for reinvestment.

Why These Sizes Benefit Most:

Missing Out on Opportunities: Three in four Australian SMEs may be missing out on key benefits like the $20,000 instant asset write-off (available for those under $10 million turnover).
Structure Reviews: As businesses grow, a structure that worked initially (e.g., sole trader) may become inefficient, and shifting to a company structure can result in significant tax savings.
Active Asset Reductions: Businesses with less than $2 million turnover or a net asset value under $6 million can utilize specialized Capital Gains Tax (CGT) concessions.

In summary, tax strategy help provides the greatest benefit to SMEs just below the $10M-$50M mark that are actively looking to optimize cash flow, reinvest in equipment, or restructure to protect assets and reduce their tax liability.

Get the most favourable tax result

Don’t wait until the financial year closes, when it’s often too late to make meaningful changes, to start thinking about taxes. A forward-looking tax approach, rather than last-minute reactive filing, is essential to legitimately reduce your tax bill and boost your after-tax income. It’s about taking charge of your finances and positioning yourself strategically to secure the best tax outcome.

Arrange a tax strategy consultation with our specialist accounting team at ROCG to make certain you’re pursuing every available measure to reach the optimum tax result for your business and family. Ideally, schedule an appointment early in the financial year, or even before it begins, so transactions and strategies can be timed to capture the maximum tax benefits. This proactive planning allows us to identify opportunities, explore various tax-minimisation tactics, and put plans in place that may not be achievable if we wait until year-end and miss key options.

During your tax strategy consultation, the ROCG team will work closely with you to understand your specific circumstances, business operations, financial goals, and family situation. We’ll conduct a thorough review of your accounts, assess your current tax position, and consider every feasible strategy to deliver the best possible tax result for you and your business. We’ll collaborate to create a customised tax strategy that aligns with your specific needs and objectives, ensuring you make full use of available tax benefits while minimising your tax burden.

Have you developed your tax strategy yet?

Here are several strategies we’ll review and provide guidance on to see if they align with your business needs:

Additional Aspects of a Tax Strategy: In addition to specific strategies, we will look into a variety of tax minimization techniques, such as income splitting, maximizing business expense deductions, leveraging tax-efficient investment options, and enhancing your business structure for tax advantages.
Contributing to Deductible Superannuation: Superannuation contributions serve as a vital resource for retirement planning and reducing tax. We’ll evaluate your capacity for contributions, considering caps and regulations, to recommend the best approach for maximizing deductible superannuation contributions that lower your taxable income while enhancing your retirement savings.
Assessment and Write-Off of Bad Debts: Unrecoverable debts can harm both your financial standing and tax responsibilities. We will thoroughly examine your accounts receivable and advise on writing off debts that meet the Australian Taxation Office (ATO) guidelines, thus decreasing your taxable income and enhancing the accuracy of your financial statements.
Evaluating Invoice Timing: The timing of your issued and received invoices significantly affects your taxable income and cash flow. We will review your invoicing practices and provide strategies to optimize invoice timing, helping you manage cash flow effectively and reduce your tax burden.
Inventory Management Review: Efficient inventory management is crucial not only for business operations but also for tax considerations. We’ll assess your inventory practices and offer recommendations to minimize your tax liability related to inventory valuation, stock obsolescence, and cost of goods sold.
Small Business Tax Concessions: Small businesses often qualify for various tax benefits and concessions. We’ll make sure you are informed about and fully leveraging applicable small business concessions, including capital gains tax discounts, simplified depreciation, instant asset write-off provisions, and other relevant tax reliefs designed to assist small enterprises. We’ll keep you updated on any changes to these benefits to ensure you make the most of them.

Register your interest for a free consultation

If you have any questions, please do not hesitate to send us a message. We aim to reply within 24 hours.