Tax Planning

The accidental tax (over)payer. Are you really going to tip the ATO?

The accidental tax (over)payer. Are you really going to tip the ATO?

Just like any good business or even a studious school kid, our government works to a budget.  They look at the income and outgoings of our great land and even come up with a magic number of sorts to plan and allocate spend on roads, schools, health… helicopter rides (maybe).  The fact is that they know, more or less, what they should be collecting from you but if you pay extra tax, at best it’s looked at as a short term loan but usually it’s a hefty tip.  Thanks!

Tipping in restaurants, cafes and diners is not the institution in Australia it is in say, the United States of America.  But even so, a tip may be given as a thanks or gratuity for exceptional service – going above and beyond.  Again, here in Australia it’s not compulsory, not even close.

 

So why are you leaving such a generous tip for the government?

We know, for a FACT, that some of our clients have, in the past, paid 20, 30K, $40K more tax than they needed to which seems… excessive.  Did they mean to do it?  Does anybody.  Here at Inspire we’re here to ensure you pay the correct amount of tax and eradicate “accidental” tipping.  

If you have a burning desire to contribute more tax than you need to, go ahead, but do it on purpose.  Otherwise, you’re just taking food off the family table, in both a figurative and literal sense.

Let’s look at some of the ways business owners like you inadvertently pay more tax than you need to and yes, it’s very easy to do.  Especially, if your area of expertise lies outside accounting.

  1. Paying tax on a promise – you haven’t received payment yet but you know the cheque’s in the mail so you go ahead and pay the tax…  We covered this in a facebook live session today. Catch up here.
  2. Focusing on the specials and forgetting about when the best time would be to make a purchase according to the calendar.  Next Wednesday people, see you on facebook
  3. Operating under the wrong business structure for you.  This… can… cost… you… thousands.  See you in a fortnight on facebook.

As you know, our goal is to save our clients a cumulative $1m in tips tax.  Why don’t you head over to our facebook page and see how we’re going, how we’re doing it and most importantly, how we can get it done for you!