Tax Planning

Tremendous deductions because the main tax planning technique: ChangeGPS

Last week, ChangeGPS published its first tax advisory trend report of its kind, examining data from around 13,191 tax plans.

David Boyar, CEO of ChangeGPS, said tax-deductible retirement plans were recommended 65 percent of the time last year and 71 percent of the time this year to date.

“Last year we looked at recommended super deductions worth $ 73 million and accountants do so with one arm behind their back because they do not have access to accountant tax exemptions,” Boyar said.

“Auditors are allowed to advise on the tax implications of a super-deposit, but should seek independent financial advice to assess suitability for their personal position.”

The report found that so far this year, retirement savings recommendations have been recommended 3,895 times, with an average saving of $ 5,427 for taxpayers.

Tax agents have also frequently peddled instant asset depreciation, which so far accounted for 23 percent of tax agent withdrawal strategies in 2021. The average Recommended Immediate Depreciation Amount on assets increased 26 percent from $ 5,042 in 2020 to $ 64,387 in 2021.

For Mr Boyar, the report symbolizes the value that Australian accountants have brought to their profession and how instrumental they have been in securing the country’s economic recovery.

“It will be really interesting to see the final loss carry-back numbers,” said Boyar. “And it will be really interesting to see how it is used next year when companies actually have the profit to actually maximize it.

“I know of a few accounts that use things like instant asset write-off and temporary deductibility to purposely create a large tax loss in order to take advantage of them, and nothing wrong with that.

“It’s just very creative. For me, this report proves its worth [that] Australians should speak to their accountants. “

Other popular strategies the report highlights include early retirement pension payments to employees, which accounted for 21 percent of referrals for 2021, up from 19 percent last year, and saved taxpayers an average of $ 2,758.

Temporary full offsetting of depreciable assets was also high on the list, accounting for 12 percent of referrals in 2021 and grossing customers an average of $ 24,920. The average recommendation was $ 96,511.

Boyar said the increasing popularity of full-time temporary accounting has become particularly interesting as accountants try to strike a balance rather than just reaching the maximum available deduction.

“What can happen is that a customer, especially with temporary full offsetting, may purchase a large machine, and just writing off that machine in full for even one or two of them eliminates the tax gain,” Boyar said.

“You then don’t have the option of claiming things like a super deduction or something better for the whole group because you’ve eaten up all of your tax profits through temporary full offsetting.

“So accountants had to be very careful about what they recommend and not just aim for the maximum deduction, but find a balance.”

Super deductions as the leading tax planning strategy: ChangeGPS

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Last updated: July 01, 2021 Published: July 01, 2021

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John Buckley

John Buckley

John Buckley is a journalist for Accountants Daily.

Before joining the team in 2021, John worked at The Sydney Morning Herald. His coverage has been published in a variety of media including The Washington Post, The Age, and The Saturday Paper.

Email John at This email address is being protected from spam bots! You need JavaScript enabled to view it.

John Buckley is a journalist for Accountants Daily.

Before joining the team in 2021, John worked at The Sydney Morning Herald. His coverage has been published in a variety of media including The Washington Post, The Age, and The Saturday Paper.

Email John at This email address is being protected from spam bots! You need JavaScript enabled to view it.

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