Article:

The Start of a New Financial Year

31 August 2016

Sharon Houghton , Partner, Business Services, Healthcare |

Many of you have only just finished off the 2015 financial year, and hate the thought of tackling your 2016 tax, especially if there is only a tax liability to look forward to at the end of the task.  Can we encourage you to think about this just a little bit differently?

Some of the benefits of attending to your tax early include:

  • having a clear idea of your businesses performance for the year, allowing you to hone in on problem areas or opportunities in a timely manner, that will allow you to make better business decisions
  • allowing you to budget for your business and for your tax payments well in advance, and not being surprised by a balance of tax payable, in close succession to a larger quarterly tax instalment for June
  • having current figures available for your bankers, so future plans aren’t impeded unnecessarily
  • Giving your advisers some opportunity to work with you on strategy and planning, rather than only having time to deal with urgent last minute compliance.

We are happy to work on your 2016 tax now with a view to holding off actual lodgement until latest due dates where there is substantial tax to pay.

We welcome the opportunity to work with you on things that really matter to you.  That might include issues like:

  • improving your business performance
  • strategies for improving your tax position
  • utilising your self-managed superannuation funds better
  • working on your succession planning. 

To discuss any matters relating to your tax for 2016 please contact your BDO team member.

On a different but very practical note, can we encourage you all to remember to pay your company ASIC fees and your ATO assessments on time.  ASIC penalties for late payment are more expensive than the annual fee themselves, and the ATO has also taken to applying vicious penalties for late lodgements. These penalties are becoming very difficult to get reversed.