If you are a local farmer, chances are you’ve had a good year—cattle, sheep, and wool prices have been up. However, as the end of the financial year approaches, you might be also realising that this will mean a higher tax bill for you this year. The truth is, you can save yourself a lot of money if you take some action in advance, whether you’ve had a great year or a tough one. Below are some examples of things for you to consider before the end of the year to reduce your tax burden.
There are a number of other little things you can do before June 30th to reduce your tax burden, including prepaying bills, paying employee bonuses, purchasing stock and materials, and looking at your potential bad debts. For all of these items, make sure that you keep good records so that you can claim all legitimate tax deductions.
In general, it’s important to have your tax estimates and planning done with your accountant before the end of the financial year so that you can take advantage of these options if your tax bill is looking high. A bit of planning can go a long way to saving you money.
And remember: it’s not all about this year. You need to make sure that you are taking advantage of available tax minimisation options that won’t come back to haunt you in the future.