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SOURCE: Dolman Bateman & Co Pty Ltd
Dolman Bateman & Co, a specialist Chartered Accounting firm says"the reductions in the tax rates announced in the 2012 Australian Government Budget were aimed at low income earners but also present significant opportunities for tax savings for small business owners."
Sydney, Australia (PRWEB) May 18, 2012
The Australian government announced major changes in the 2012 Budget to the individual tax rates for the 2013 financial year with the increase in the tax free threshold from $6,000 to $18,200.
The tax changes were intended to provide tax relief for low and middle income earners but it also relieves low income earners earning below $18,200 per year from lodging income tax returns.
Arnold Shields, Forensic Accountant from Dolman Bateman & Co says “The lower tax rates also presents opportunities for small business owners for more efficient tax strategies especially through the use of trusts and distributing income to family members.”
Small business owners should be reviewing their corporate structure and income distribution strategies in light of these changes. Business owners with adult children at university or earning less than $18,200 should be considering distributing income to their adult children to take advantage of these lower tax rates.
Shields adds “As an accountant, I recommend that all business owners should have a regularly updated tax strategy which will produce greater tax savings than just looking for tax deductions alone”
Dolman Bateman provides a simple and easy to use Tax Calculator that enables individuals to quickly determine the tax that they would save as a result of the Federal Government changes. The tax calculator has been updated to take account of the new tax rates and also provides tax rates all they way back to 2002.
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