In the past couple of weeks most of the tax discussion has been dominated by the raft of stimulus measures that are being released, seemingly daily, by the Federal and State Governments.
Staying on top of the various stimulus measures and maximising the available benefits for your business and your employees is critical. The immediate challenges of the COVID-19 business crisis has meant a somewhat reactionary approach is necessary (practically nobody saw this coming) and the stimulus measures have been carefully targeted by the Government to help business:
But… you should start “planning ahead” now
Looking beyond the here and now, you need to be planning for a return to normal business, although “normal” may be different for some time or indeed forever. It is important to reimagine what the next normal will look like:
The key to any planning is tax forecasting
Business forecasting is critical when confronting uncertainty, as it gives you a clear base line to assess alternative outcomes. Most businesses should be currently reviewing financial assumptions and producing new forecasts. It is necessarily an ongoing process and your tax forecasts should work in parallel.
A good tax forecast model is more than multiplying accounting profit by 30% and assuming four equal tax instalments. Perhaps this is a reasonable approximate, but it does not tell you the story that is important to your business.
A good tax forecast model forecasts the key risks and tax attributes of a business. It should forecast and assess the following:
Appropriate forecasting of key tax attributes and risks enables you to understand what drives the numbers and identify what the trigger points are for key decision making.
Such a strategic approach not only manages tax risk, it ensures that when the right opportunities present themselves it is more likely that you are able to capitalise on them to drive business value through tax outcomes, and be ready for a post COVID-19 world
Some actions shots from our recent client session where we updated on our new strategy, new name, vision and mission and the general expansion of our business over the last year. We also had some really insightful and fun tax update trivia and as always some great conversations over pizza and a drink. Thanks all to those in attendance and our dedicated team at Nuwaru who presented and worked to bring the session to life.
A snapshot of our monthly training at Nuwaru and a very big thank you to Shane Peters for presenting on some of the recent developments in the payroll tax space, including the recent Optical Superstores case.
If you are interested in joining the team at Nuwaru or would like to talk with one of our specialist tax or accounting partners please reach out to Mark Oh or myself.