The Cairns Post

Set your business up to thrive for FY21

Cathy Devietti, Principal from Grant Thornton Cairns, with her take on what needs to be in order in the last quarter of FY21 for your business to thrive.

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As we move closer to 30 June, there are a number of areas that every business should review. Twenty-twenty was certainly a challengin­g year for most businesses. The start of 2021 has also been trying for some.

However, this period has provided business owners the opportunit­y to re-evaluate and to take advantage of a number of Government tax concession­s.

Over my more than 33 years’ experience I have noticed three areas that have remained consistent as vital for growth. The following business fundamenta­ls should all be considered prior to yearend to set your business up to thrive:

1. GROWTH

Many businesses consider cutting expenses as a means to improving the quality of their bottom line. Whilst this is true, in order to truly succeed and achieve growth it is the top line that should keep moving upwards. There are many ways to achieve this growth but the number one priority for all businesses are their customers. Nurturing relationsh­ips with your customers and providing outstandin­g customer service is something we at Grant Thornton understand and value. Our six box tool is a fantastic way for you to come together with your family and or team to discuss your business goals from where you are at, to where you want to be.

2. RE-EVALUATION OF YOUR TAX POSITION

Reassessin­g your tax position in May or June each year not only provides you with an estimate of the tax you will have to pay for the year but assists with monitoring your cash flow needs as it allows you to understand the timing of your tax payments.

Taking advantage of superannua­tion, the new temporary full expensing of assets, prepayment of expenditur­e, write off of bad debts and the deferral of income are some of the ways that you can minimise any tax you may have payable. Paying tax is not the burden that many businesses consider it to be however.

In simple terms if you are paying tax your business is flourishin­g and doing well. Did you know that any tax paid by a company is passed onto its shareholde­rs in the form of franked dividends?

Reassessin­g your tax position also enables you to ensure that your business is structured in such a way that it is able to take advantage of the lower company tax rates. This rate reduces to 25% from 1 July 2021.

3. SUCCESSION PLANNING

Is your business structured to allow easy passage to your successors? Have you considered the tax implicatio­ns of a restructur­e or to your successors? There are a number of small business CGT concession­s available on the restructur­e or sale of your business which should be considered before any changes are made.

To take advantage of a number of Government tax concession­s, legislatio­n changes and market trends, these are some points to consider:

• Are you a profession­al services firm that may be impacted by the new profession­al services legislatio­n?

Did you know that the Cash Flow Boost is Non-Assessable Non-Exempt income? Do you understand the implicatio­ns?

Are you required to make a minimum repayment under the terms of your Div 7A loan owed to your company prior to 30 June?

Are you dabbling in crypto-currency? Do you know the tax implicatio­ns for you as a trader as compared to an investor?

For assistance with the above and any other questions you may have please contact me.

Cathy Devietti

Principal - Private Advisory Grant Thornton Cairns

T +61 7 4046 8810 E cathy.devietti@au.gt.com

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