Tax Planning and Administration

Tax is inevitable for profitable investing. Managing the administration of it and the associated paperwork is critical. Cashel House can assist.

Running into the end of financial year you should review you tax affairs. As a family office client we would recommend meeting with yourself and your tax adviser to discuss the following (but not limited to):

  • Estimate your tax liabilities for the current financial year
  • Review your concessional and non-concessional superannuation contributions
  • Review any tax offsets and tax rebates that you may have accumulated through the year
  • Consider forward paying deductible interest or insurance expenses for the coming financial year (in this current financial year)
  • Review your investment and superannuation portfolio, in particular any investment positions that are in a loss (and are unlikely to recover) and those that have reached the highest they are likely to reach
  • Consider the effect of any self employed payments or sale of active and passive investment assets.

While all may be small items, they all add up and can make a material difference to your after tax wealth in retirement.

As a family office client you need to be acutely aware of the responsibilities to the Australian Tax Office and other legal requirements. To this end we are here to assist and to ensure that all your administrative affairs are in order so you can start the next financial year without any clouds. Following from any end of year tax planning some of the items that Cashel House will undertake with you include the following:

  • Maintaining your current group entity structure
  • Ensuring your corporate register is up to date for all of your legal entities
  • Review your trust deeds
  • Review your super deeds
  • Ensure you’ve completed your dividend resolutions
  • Ensure your book keeping is up to date for completion of post year financial statement preparation
  • Ensure that your ATO elections for the financial year ending are completed
  • Ensure that trust distributions resolutions are current and in place for the financial year
  • Ensure business sale and purchase agreements are on file
  • Ensure all finance agreements are on file
  • Ensure that property purchase and sale agreements are on file
  • Confirm your tax residency
  • Draft your personal balance sheet
  • Update asset valuations for the end of year
  • Check that super contributions have been made
  • Check that super member balances are correct
  • Check that your current Estate Plan including Wills, Power of Attorney, Death Benefits, Insurances, Testamentary Trusts are all on file
  • Where needed arrange for your family advisory board to meet
  • Review your banking structures

While this can be daunting, as a family office client we will work through this in the background with your tax and legal adviser to ensure this is all up to date.

There is a range of tax planning strategies that both your Tax Adviser and ourselves can assist you with. Some common strategies include:

  • Capital Gains Tax Management
  • Family Trust Income Distributions
  • Superannuation Contributions
  • Salary Packaging
  • Small Business CGT Exemptions

Salary packaging is an important element in each individuals annual tax planning. Your can salary package any expense with the consent of your employer, however many things attract a fringe benefits tax which may make it unattractive.

A few items are except from this and enable you to make payments prior to your personal income tax being applied. These include:

  • Salary Sacrificing up to $25,000 per year into your superannuation on a pre-tax basis, and
  • Payment of work related items such as the purchase of safety equipment and briefcases.