June (No. 497)
June is the time to get 'micro' with tax
Stephen Heath , Thomson Playford
Tax is on the mind of many wineries and grapegrowers in June and this is the perfect time to ensure your tax “house” is in order before the end of the financial year.
From a taxation viewpoint, timing can mean everything, especially when it comes to disposal of assets and Capital Gains Tax (CGT) considerations.
Well timed and carefully calculated transactions should result in a smooth – and tax-effective – transition into the next financial year.
On the other hand, mistiming and failure to address certain tax issues before June 30 could result in unsuspected tax liabilities which can amount to hundreds of thousands of dollars.
May and June are ideal months for ‘micro-planning’, while July and August offer a prime opportunity for ‘macro-planning’.
In other words, much of the period leading up to June 30 should be dedicated to number-crunching and fine-tuning; a detailed analysis of your financial position and ensuring you are well positioned for the end of the tax year.
The months following June 30 then can be spent reassessing your overall position.
Longer-term plans can be made, strategic alliances can be considered and, in the case of smaller family-run businesses, time can be devoted to other important issues such as succession planning.
NOTE: The complete article can be found in the June issue of The Australian & New Zealand Grapegrower & Winemaker.