Planning Ahead For Your Year-End Tax Obligations
As we approach the end of year, we want to remind you of the importance of planning ahead to meet your tax obligations. If you haven’t already done so, now is a good time to ensure you are setting aside adequate funds for liabilities such as:
- Business Activity Statement (BAS) obligations, including GST on sales and purchases.
- Pay As You Go (PAYG) Instalment and PAYG withholding for employees.
- Payroll Tax, where applicable
- Superannuation Guarantee Contributions for your employees.
Planning Ahead For Tax Obligations
Proper planning can help reduce stress during tax time and maintain healthy cash flow. Here are a few recommendations to consider:
- Reviewing Your Obligations: If you haven’t already done so, take a moment to review your upcoming tax liabilities, including net GST payable, PAYG Instalments, PAYG withholding for employees, payroll tax, and superannuation.
- Setting Aside Regular Amounts: A practical approach is to identify a typical BAS period, calculate your average liability and divide that amount by 13 to find the weekly sum to set aside. For superannuation, we recommend allocating the required mount at the completion of each pay cycle.
- Using a Separate Account: Consider opening a dedicated bank account to hold funds for your tax obligations. This can help you avoid accidentally using these funds for day-to-day operations.
- Keeping Up With Deadlines: Missing deadlines can result in penalties and interest charges. By planning ahead, you can avoid these unnecessary costs.
If you’d like assistance with estimating your liabilities, setting up a tax-saving plan, or any other support, please let your account manager know when preparing your next BAS.