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Tax time can be stressful for business owners, and even a small mistake can lead to unnecessary expenses, penalties, or missed opportunities. Many business owners unknowingly make costly tax errors that impact their bottom line. The good news? With the right strategies, and a little help from the Attune team, these mistakes are entirely avoidable.
Below, we’ll break down the five mistakes worth avoiding to keep your business tax-efficient and compliant.
Accurate record-keeping is essential for maximising deductions and ensuring compliance. Yet, many business owners fail to track expenses properly, leading to lost deductions or even audits.
Avoid this mistake by:
• Using cloud-based accounting software like Xero or QuickBooks to track transactions.
• Keeping digital copies of receipts and invoices.
• Regularly reconciling bank statements and business expenses.
Choosing the wrong business structure—whether sole trader, partnership, company, or trust—can lead to excessive tax liabilities and legal complications.
Avoid this mistake by:
• Consulting the Attune team to ensure you’re set up with the right structure based on your revenue, risk level, and goals.
• Reviewing your business structure periodically as your company grows alongside your accountant.
• Understanding the tax implications of each entity type.
Many business owners leave money on the table by not claiming all the deductions they’re entitled to. Commonly missed deductions include home office expenses, depreciation, and work-related travel.
Avoid this mistake by:
• Keeping a detailed log of business expenses.
• Understanding industry-specific tax deductions.
• Consulting the Attune team regularly to ensure you claim everything you’re entitled to.
Unexpected tax bills can put a strain on cash flow, especially if you haven’t set aside enough funds throughout the year.
Avoid this mistake by:
• Setting up a separate tax savings account.
• Using a tax forecast to estimate quarterly obligations.
• Staying on top of BAS (Business Activity Statement) and PAYG instalments.
With the Attune team on your side, we can help guide you with forecasting and strategies that work for you and your business, so don’t hesitate to reach out to discuss putting the right plan in place for your tax-planning.
Failing to pay superannuation or payroll taxes correctly can lead to severe penalties from the ATO or worse. Late or incorrect super contributions also mean missed benefits for employees.
Avoid this mistake by:
• Ensuring super contributions are paid on time and in full.
• Using payroll software that automatically calculates tax and super obligations.
• Keeping up to date with legislative changes.
• Consider looking at a payroll audit to ensure you are setup correctly for compliance
With the recent addition of the Voluntary Small Business Wage Compliance Code, payroll should become an error-free zone for your business. To make sure you’re doing all the right things at all the right times, contact the Attune team on 1300 866 113 and let’s ensure you’re compliant across the board.
Tax mistakes can be costly, but with the right knowledge and systems in place, you can avoid unnecessary expenses and compliance risks. If you’re unsure whether your business is making these common errors, Attune Advisory is here to help.
Get in touch with Attune today on 1300 866 113 or send us an email to start the conversation – you’ll be glad you did.
Investing in property is a proven way to build wealth, but the structure in which you purchase can have significant tax implications. Many savvy investors use trusts as a strategy to optimise tax benefits and protect their assets. But how does this structure work, and is it the right choice for you?
Below, we’ll break down the key advantages of buying property through a trust and what you need to consider before making the move.
A trust is a legal entity that holds assets on behalf of beneficiaries. It is managed by a trustee, who is responsible for making decisions in the best interest of those beneficiaries. Trusts are commonly used for estate planning, asset protection, and tax planning—making them an appealing option for property investors.
There are several types of trusts, but the most commonly used for property investment in Australia are:
• Discretionary (Family) Trusts – Popular among families for tax flexibility.
• Unit Trusts – Ideal when multiple investors are involved.
• Hybrid Trusts – A combination of discretionary and unit trusts, offering more control over income distribution.
1: Income Distribution Flexibility
One of the biggest tax advantages of a trust is the ability to distribute rental income and capital gains to beneficiaries in a way that minimises overall tax liability. If a trust has multiple beneficiaries, income can be allocated to those in lower tax brackets, reducing the total tax paid.
For example, if a property generates $50,000 in rental income, the trust can distribute it among family members who may be taxed at a lower rate than a single investor would be.
2: Capital Gains Tax (CGT) Concessions
When a trust holds property for over 12 months, it can benefit from a 50% CGT discount upon sale, similar to individual investors. This means that if the property increases in value and is sold for a profit, only half of the capital gain is taxable, significantly reducing the overall tax burden.
3: Asset Protection
Trusts offer an added layer of legal protection by keeping the property separate from personal assets. This can be crucial if the investor faces legal action or financial difficulties, as assets held in a trust are generally shielded from creditors.
4: Land Tax Benefits
Depending on the state, trusts can sometimes help reduce land tax liabilities. Certain types of trusts (such as fixed trusts) may qualify for tax thresholds that individual investors would not. However, it’s essential to check state-specific regulations, as some states impose higher land tax rates on trusts.
5: Estate Planning and Wealth Transfer
A trust allows for seamless succession planning, ensuring that property assets are transferred to the next generation without triggering costly stamp duty or capital gains tax events. This makes it an effective tool for long-term wealth building.
While the tax benefits are attractive, buying property through a trust isn’t suitable for everyone. Consider the following:
• Setup and Compliance Costs – Trusts require legal setup, ongoing administration, and tax compliance, which can be costly.
• Loss of Negative Gearing – Unlike individual investors, trusts generally cannot pass property losses onto beneficiaries’ personal tax returns.
• State-Specific Regulations – Land tax rules and trust structures vary across Australian states, requiring careful planning.
Consulting with the Attune team first is crucial before deciding if a trust is the best structure for your property investment strategy. We can help you build the right strategy and put the structure in place that works best for your goals and circumstances.
However you choose to proceed, it’s important to weigh the pros and cons based on your personal circumstances – which is what we’re here to help with. So, if you’re looking to optimise your property investment strategy, book a consultation with the Attune Advisory team today here or give us a call on 1300 866 113 and let’s explore the best structure for your investments.
Running a small business comes with a unique set of financial challenges. Without a well-planned budget, business owners risk overspending, cash flow shortages, and financial instability. Effective budgeting is not just about cutting costs—it’s about making strategic decisions that support growth and long-term success.
With that in mind, we thought we’d share five smart budgeting hacks to help small business owners stay on track financially.
One of the biggest mistakes small business owners make is mixing personal and business finances. This creates confusion, makes tax time a nightmare, and prevents a clear understanding of business profitability.
To stay organised, open a dedicated business bank account and use a separate credit card for business expenses. Accounting software like Xero, QuickBooks, or MYOB can help track expenses automatically, ensuring you always have a clear picture of where your money is going. Keeping personal and business finances separate simplifies bookkeeping and helps maintain financial clarity.
A well-structured budget should align with your business goals. Without clear objectives, spending can become reactive rather than strategic. Establish short-term and long-term financial goals to guide your budgeting decisions.
• Short-term goals might include reducing operating expenses or increasing monthly revenue.
• Long-term goals could focus on business expansion, hiring staff, or investing in new equipment.
By aligning your budget with growth strategies, you can allocate resources more effectively and ensure financial stability. Regularly review your financial goals to adjust for changes in the market or business conditions.
Regularly reviewing your expenses helps uncover unnecessary costs that could be eating into your profits. Many small businesses waste money on subscriptions, excessive marketing expenses, or inefficient processes without realising it.
• Conduct a monthly expense audit to identify areas where you can cut back.
• Renegotiate contracts with suppliers to secure better deals.
• Eliminate or downgrade unused software subscriptions.
• Consider outsourcing non-core activities instead of hiring full-time employees.
Trimming unnecessary expenses doesn’t mean sacrificing quality—it’s about spending smarter. Every dollar saved can be reinvested into growing your business.
A simple yet effective way to structure your business budget is using the 50/30/20 rule. This method helps ensure that funds are distributed efficiently to maintain financial health.
• 50% for essential expenses – Rent, salaries, utilities, and necessary supplies.
• 30% for growth investments – Marketing, training, and business expansion.
• 20% for savings and emergencies – A financial safety net for unexpected costs.
Following this framework prevents overspending in any one area and ensures your business remains financially balanced. If your current budget doesn’t align with this ratio, consider making adjustments to better distribute your funds.
Manually tracking expenses can be time-consuming and prone to errors. The right technology can streamline the budgeting process and provide real-time insights into your financial position.
Consider using:
• Budgeting and forecasting software like Futrli or Float to predict cash flow trends.
• Cloud-based accounting platforms like Xero or QuickBooks for automated financial tracking.
• Expense management apps like Expensify to track receipts and manage spending on the go.
Leveraging technology ensures accuracy, saves time, and allows for better financial decision-making based on real-time data.
Budgeting is not just about cutting costs—it’s about strategic financial planning. By separating business and personal finances, setting clear goals, eliminating unnecessary expenses, adopting the 50/30/20 rule, and using technology, small business owners can take control of their finances and pave the way for long-term success.
If you need expert guidance to streamline your budgeting process and improve financial efficiency, Attune Advisory is here to help. Book a consultation with the Attune Advisory team today here or give us a call on 1300 866 113 for tailored financial strategies that support your business growth.
Financial reporting is the backbone of informed business decision-making. Yet, many small business owners find financial reports overwhelming or don’t utilise them effectively.
Understanding key financial statements can provide valuable insights, helping businesses track performance, manage cash flow, and plan for the future.
With that in mind we thought we’d break down essential financial reports and explains their significance in driving business success.
The Profit and Loss Statement, or income statement, summarises a business’s revenue, costs, and expenses over a specific period. It provides a snapshot of profitability, helping business owners determine whether they are making or losing money.
Why It Matters:
How to Use It:
Regularly reviewing your P&L allows you to spot patterns in sales and expenses. For example, if revenue is rising but profits are stagnant, it may indicate rising costs that need attention.
The Balance Sheet provides a snapshot of a company’s financial position at a given moment. It outlines assets (what the business owns), liabilities (what the business owes), and equity (the owner's investment).
Why It Matters:
How to Use It:
By analysing your balance sheet, you can assess liquidity (ability to cover short-term obligations) and solvency (long-term financial stability). If liabilities outweigh assets, it may indicate financial risk that needs addressing.
A Cash Flow Statement details the movement of cash in and out of the business through operating, investing, and financing activities.
Why It Matters:
How to Use It:
A positive cash flow indicates that a business is generating more money than it’s spending, while a negative cash flow might signal trouble. Identifying cash flow trends allows businesses to adjust spending and improve cash management strategies.
The Budget vs. Actual Report compares projected financial goals with actual performance. It helps businesses stay on track and adjust their strategies when needed.
Why It Matters:
How to Use It:
If actual expenses exceed budgeted amounts, business owners can investigate the cause and implement cost-saving measures. If revenue is below expectations, it may be time to revise marketing strategies.
Beyond standard reports, businesses can benefit from industry-specific financial reporting.
Examples:
Tailoring reports to your industry ensures you track the most relevant metrics and make well-informed decisions.
To summarise, regularly reviewing key reports—P&L, Balance Sheet, Cash Flow Statement, Budget vs. Actual, and industry-specific reports—helps in identifying opportunities, mitigating risks, and planning effectively.
If you’re not sure where to start or perhaps are keen to refine your reporting to suit your business model more appropriately, we’re here to help. Book a consultation with the Attune Advisory team today here or give us a call on 1300 866 113 and let us simplify and customise your financial reporting process to fit your business, so you can focus on growing it with confidence.
