Dynamic Business

Tax effective investments
“If you borrow funds for investment purposes you may be eligible for tax benefits, for instance if the investment produces an income, the costs of owning it are tax deductible, including the interest on the loan. If you borrow and the costs of the investment exceed the income, the deductions can reduce your other taxable income.

“Considering the tax advantages when purchasing an investment should not only be the primary reason for undertaking the investment, however the opportunity as an individual to take advantage of pre-payment of interest to bring forward tax benefits could also be considered,” said Derin.

Superannuation
“Superannuation can be a very tax effective strategy. If you make salary sacrificed contributions to your super in additional to the contributions made by your employer, you may be eligible for Government Co-contribution. If you are self-employed then your super contributions may be tax deductible. Those who contribute to a spouse’s superannuation may be eligible for a tax offset if they have a low income or earn nothing.

“Self managed superannuation funds can be complicated and have many tax implications. It is best to seek expert advice to ensure it is set up correctly and you are meeting your taxation obligations and are receiving the maximum tax benefits,” said Derin.

“To effectively manage tax planning for Azure Group’s clients, we have developed a three step process that encompasses the above areas and helps to streamline the process to ensure maximum efficiency. Anyone considering implementing an ongoing tax plan for their business should consult an accountant to help them make sure they capitalise on every tax-saving opportunity,” said Derin.

Azure Group was established in 2002 by Michael Derin and since its foundation the company has grown exponentially with annual turnover increases in excess of 40 per cent. In 2008, the company continued to grow by another 20 per cent and they also expanded by opening offices in the Gold Coast.

Derin started Azure Group with the idea of offering strategic level commercial advice to SME clients. The fundamental thing that he identified was that SMEs rarely get that level of assistance because they can’t afford or attract an experienced full-time Chief Financial Officer (CFO) normally only afforded by a large corporate and they can’t find it in the consulting world.

While tax planning can be a laborious task, if done correctly, it can save your business both time and money.

Derin is the managing director of Azure Group, a chartered accountancy firm specialising in providing strategic advice to SMEs. For more information about Azure Group services, please visit www.azuregroup.com.au

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