News Articles
How important is tax planning for Agribusinesses?
In most industries, the importance of tax planning is to ensure businesses minimise tax and maximise wealth.
In the agribusiness industry, it is incredibly important as these businesses, and the individuals within them, have access to tax-saving opportunities not available to everyone.
These include:
- Farm Management Deposits (FMD)
- Primary Production Averaging
- Concession Depreciation rates of certain assets
- Prepayment of consumables
- Stock on hand
There are other tools which are available to all other industries also, implementing these tools requires careful consideration. The entity/individual must be aware of the consequences of using these tools.
These tools be one or all of the following:
- Bring forward deductions
- Immediate write off fixed assets
- Prepayment of interest
- Superannuation
Consequently, planning is imperative as strategies need to be in place before the end of the financial year, to ensure your agribusiness benefits.
As part of our process, we perform the following tasks:
- Review expected annual results,
- Look at the strategic options available to you,
- Ensure you can maximise the opportunities available to you,
- Make sure the business and family group entity structure are still appropriate, and
- Meet with your accountant at least two months before the end of the financial year discuss all of the above.
How vital are entity structures to your agribusiness?
Structures allow you to distribute income to the most tax beneficial entity/individual within the group, while also avoiding other issues which can come about when actioning this, i.e. unpaid present entitlements and Division 7a loans.
If your entity structure is not ideal, several restructure concessions are available to groups to assist with making changes. What's more, without the burdensome costs imposed in doing so. Your group is then set up to minimise the tax you are paying, and mitigate risk legitimately.
Discuss Further?
If you would like to discuss, please get in touch.
Disclaimer
The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
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"We feel confident in our financial decisions and can focus on growing our business with peace of mind."
John & Barbara Kalleske
Kalleske Vineyards Pty Ltd
Industry Focus
"Helping you achieve your dreams, is our passion, and our strength is in our dedicated professional team."
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HINDMARSH SA 5007
PO Box 338
Welland SA 5007
