With the end of the financial year fast approaching, now is the time to explore how expert tax planning can help you reduce tax liabilities, strengthen your financial position, and make strategic financial decisions.
Many people view tax planning as just another compliance task. In reality, it’s a powerful strategy that can deliver meaningful benefits – including real cash savings and stronger long-term outcomes.
Tax planning strategies are most effective when tailored to an individual business’s circumstances. The following example is provided for illustrative purposes only to demonstrate the potential benefits of strategic planning. Actual outcomes will vary depending on a range of factors, so we strongly recommend seeking personalised advice from a qualified professional.
Disclaimer: This following scenario is a general example only, used to demonstrate possible outcomes. There are a number of contributing factors that will determine individual outcomes and as such you should seek expert tax planning advice that is tailored to your situation.
Let’s take a look at a practical example where expert tax planning advice not only reduced the company’s overall tax liability but also enabled the business to acquire a new asset and allowed the owner to significantly boost their superannuation savings. Not a bad outcome!
Case Study
In this case study, the business is a consulting firm that is operating via a company business structure.
The left column of figures is financial data for the 2025 financial year with no tax planning strategies in place.
In that scenario, with no tax planning advice, the company tax liability would be $101,973
The right-hand column illustrates the outcome after the client received expert tax planning advice and implemented a range of tailored strategies.
You’ll see two bolded expense figures that didn’t appear in the data on the left, $34,000 & $32,400.
Let’s explain those a little further.
Depreciation – utilising the small business instant asset write-off provision allows eligible businesses to claim an immediate deduction for an asset $20,000 and under, in the year it is first used or installed ready for use for a taxable purpose.
The consulting firm purchases a new photocopying machine and upgrades specialised equipment to the value of $34,000 and is able to claim it as an immediate deduction.
Additional Superannuation Contribution – the concessional superannuation cap is $30,000 for the 2025 financial year. Topping up each director’s concessional superannuation contribution to the full amount of the cap (compulsory contribution of $13,800 + top up of $16,200 = $30,000) significantly increases the owners superannuation balances and is a great long-term strategy for retirement.
Increased Expenses Reduce Profit – both of the above strategies are additional expenses to the business, which doesn’t sound like something that you would necessarily want to do, or strive for. But in fact, as you can see in this instance, additional expenses are not necessarily a bad thing.
These two expenses reduce the overall company profit by $66,400 ($34,000 (new and upgraded assets) + $32,400 (additional superannuation contributions)).
The reduced profit then results in a reduction of the business’ company tax liability from $101,973 to $85,373. That’s a difference of an extra $16,600 in the business’ bank account from reduced tax liability.
This example highlights how expert tax planning can not only reduce a business’s company tax liability, but also deliver broader benefits such as upgrading equipment and making additional superannuation contributions. For the business owner, these are strategic steps towards long-term financial stability.
At Quinn Group, the expert team of tax accountants and tax lawyers can help. We understand both the legal and financial aspects of dealing with the ATO when lodgment obligations are missed. If you have received a warning letter or default assessment, our team can help you resolve these issues and bring your tax affairs back into compliance.
Contact our team by calling 1300 QUINNS (1300 784 667), + 61 2 9223 9166 or use the “Book a Meeting” button below to submit an online enquiry and schedule an appointment.
