SMARTEN UP! The Tax and Business Podcast

Discover how your financial decisions today impact your tax savings tomorrow with our in-depth look at long-term tax planning.

In this episode, Sally Preston dives deep into the world of future tax planning, exploring the strategic decisions business owners need to make today to ensure maximum cash flow and minimal tax liabilities in the long run. 

From understanding the impact of borrowing against company profits to optimising business structures for favourable tax outcomes, Sally breaks down complex tax strategies into actionable insights. Discover how thoughtful planning can transform your financial future and safeguard your investments from unnecessary tax burdens.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• Sally introduces the value and relevance of this episode’s topic — future tax planning beyond the current financial year (00:00)
• How current tax-saving decisions impact long-term cash flow and tax liabilities (00:45)
• The importance of structuring business affairs in a tax-effective way from the outset (01:30)
• Comparing the tax implications of dividends paid to shareholders versus loans from the company (03:20)
• Benefits and flexibility of having a discretionary trust as a shareholder (06:10)
• The pros and cons of reinvesting profits within an investment company (09:00)
• How grouping companies for tax purposes can simplify transactions and reduce liabilities (11:15)
• Planning for business exit strategies to minimise tax on sale or inheritance (14:50)
• The dangers of operating a business in a discretionary trust and how to avoid common tax pitfalls (17:20)
• Why it’s crucial to consider long-term tax impacts when making business decisions today (20:10)
• Recap of key points and encouragement to seek professional advice for personalised tax planning (22:50)
  
  

This episode sheds light on the complex yet crucial aspects of long-term tax planning. Remember, the decisions you make today can significantly impact your financial future. Stay informed, ask the right questions, and always consult with your advisors to ensure you're on the best path forward.
CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

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LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Discover how your financial decisions today impact your tax savings tomorrow with our in-depth look at long-term tax planning.

Welcome to another insightful episode of Smarten Up! The Tax and Business Podcast. Today, we're diving into a critical yet often overlooked aspect of financial management — long-term tax planning. 

While end-of-year tax strategies are essential, it's equally crucial to consider the lasting impact of your financial decisions. This episode focuses on the intricacies of Division 7A loans and how borrowing from your private company can affect your overall tax bill over time. 

Whether you're a business owner or a wage earner, understanding these factors can significantly influence your cash flow and tax obligations.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• Why it's crucial to consider tax impacts beyond the current financial year for both business owners and wage earners (0:50)
• How different financial decisions impact long-term tax and cash flow (1:40)
• Introduction to Division 7A loans and their commonality among business owners (2:30)
• Details on borrowing money from a private company under Division 7A and the implications (4:20) 
• Requirements for repaying loans to avoid Division 7A tax implications, including compliant loan agreements (6:10)
• The benchmark interest rates for 2024 and how they affect the overall cost of loans from your company (8:05) 
• Real-world scenarios illustrating the implications of Division 7A loans and the strategic decisions involved (10:45) 
• Alternatives to Division 7A loans: Other strategies for accessing company funds and the potential benefits of borrowing from a bank instead (14:30) 
• The importance of modelling and planning for long-term tax impacts with your accountant (18:20) 
• A sneak peek into the next episode: Additional factors that can influence long-term tax liabilities (21:00) 
  
  

We hope this episode sheds light on the complex yet crucial aspects of long-term tax planning. Understanding the implications of Division 7A loans and making informed financial decisions can save you significant amounts in the long run. 

CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Grim but essential — don't let death and taxes blindside you or your loved ones. This episode covers key tax questions to ask when drafting a will, acting as executor, or receiving inheritance.

Death and taxes — two certainties in life that intersect when someone passes away. tax implications can significantly impact the assets and wealth you leave behind or inherit from a deceased estate. Today, we will tackle the subject matter head-on, exploring crucial tax considerations at every stage.

If drafting a will, understand how assets will be taxed when divided among beneficiaries, and the potential advantages of including the basics of a testamentary trust. As an executor, be prepared to file outstanding tax returns, apply for estate tax file numbers, and manage CGT events if assets are disposed of. And for beneficiaries, know the implications of inheriting different asset types — pre/post CGT, main residences, and business interests.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• Defining key death and tax terms — beneficiary, executor, legal personal representative (1:12) 
• Tax on assets when you die — the CGT rollover provisions (3:40) 
• What is a testamentary trust and why include one in a will? (6:57) 
• Tax obligations if you are the executor of an estate (12:07) 
• Tax implications for beneficiaries inheriting different asset types (16:12) 
• Preserving main residence exemption and small business CGT concessions (20:28) 
  
  

Don't be caught unaware when navigating the tricky crossroads of death and taxes. Seek professional advice early and be prepared — it could mean the difference between preserving or eroding your wealth.


CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

As the end of the financial year approaches, are you leaving money on the table by not taking advantage of tax planning strategies? 

In this episode, Sally walks you through a ton of useful tactics to slash your tax bill and keep that hard-earned cash money where it belongs - in your pocket, not the ATO's. She breaks it all down into simple, easy-to-follow advice whether you're a business owner or an individual taxpayer.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• Intro: Tax planning 101 — Why you should do it before the EOFY (0:01)
• Biz Strategy #1: Bad debt write-offs to reduce taxable income (1:22)
• Biz Strategy #2: Writing off obsolete or damaged stock (2:15)
• Biz Strategy #3: Paying employee bonuses for a juicy deduction (3:08)
• Biz Strategy #4: Instant asset write-off up to $20K (4:02)
• Biz Strategy #5: Prepaying employee super for a swift deduction (5:00)
• The power of forecasting profits and varying tax instalments (6:15)
• Dividend strategies and trust resolutions before EOFY (7:45)
• Personal tactics: Prepaying deductible expenses for a tax windfall (9:28)
• Supercharge your super with concessional contribution strategies (10:35)
• Div 293: The potential super tax sting for high-income earners (12:22)
• Wrapping up the tax-slashing extravaganza (13:35)
  
  

Whether you're a business owner or an individual taxpayer, this episode is your ultimate guide to legally minimising your tax obligations. From write-offs and deductions to superannuation strategies and dividend management, Sally leaves no stone unturned in her quest to help you keep more money in your pocket. 

CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Unleash the power of your superannuation savings and unlock a world of investment opportunities with self-managed super funds (SMSFs) and property.

Superannuation savings are often an untapped source of wealth, but with the right strategies, you can make your super work harder for you. In this episode, Sally Preston sits down with Tracey Norris, a director at Pitcher Partners, to explore the advantages of investing in property through your self-managed super fund (SMSF).

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• Separate your business premises from your operating business for enhanced asset protection (1:32)
• Unlock tax advantages by paying rent to your SMSF at a lower 15% tax rate (2:15)
• Leverage your SMSF to borrow money and invest in property (4:10)
• Accumulate wealth faster by retaining 85% of rental earnings in your SMSF (4:10)
• Navigate the rules and traps of acquiring business premises through your SMSF (6:53)
• Structure your SMSF borrowings to settle property purchases (9:40)
• Utilize the power of special purpose SMSFs for multiple members (13:33)
• Restructure your business and roll over capital gains tax-free into your SMSF (19:02)
• Boost your super balance with tax-deductible contributions and accelerate debt repayment (24:41)
• Explore related party lending strategies for SMSF borrowings (25:33)
• Understand the compliance requirements, including annual audits for SMSFs (28:36)
  
  

Don't let your superannuation savings sit idle. Discover how investing in property through your SMSF can be a game-changer for your wealth accumulation and retirement planning.

CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Selling your home? Don't make the costly mistake of assuming it's completely tax-free. Discover the truth about the main residence CGT exemption and how to maximize your savings.

The main residence capital gains tax exemption seems straightforward — sell your home and pay no tax, right? Wrong. There are numerous complex rules and requirements that could disqualify you from the full exemption or leave you with a hefty tax bill.

In this episode, Sally Preston dives deep into the main residence CGT exemption. Don't let the main residence exemption rules catch you off guard. 

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• What qualifies as a "main residence" and how to determine if yours meets the criteria (1:59)
• Limitations that could reduce or eliminate the exemption, including land size, multiple dwellings, business use, and periods of absence (6:20)
• Strategies for maximizing the exemption when moving between properties (16:05)
• Special circumstances like accidental destruction, death, and divorce (21:12)
  
  

Whether you're selling now or years down the road, understanding the main residence capital gains tax exemption is crucial for homeowners. Get prepared by listening to this insightful episode packed with real-world examples and expert guidance.


CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Capital gains tax can be a daunting and complex topic for many individuals and business owners. With its intricate rules, numerous exceptions, and potentially significant financial implications, navigating the world of CGT can feel like a minefield.

Sally takes you on a deep dive into the fundamentals of capital gains tax. She breaks down the key concepts, definitions, and calculations involved, ensuring that even those with limited tax knowledge can gain a solid understanding of this critical area.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• What constitutes a CGT asset (00:02)
• The assets that are exempt or subject to special rules: cars, collectibles, and more (2:26)
• The various events that can trigger a capital gain or loss (07:35)
• How to calculate your capital gain or loss, including the cost base and capital proceeds (10:40)
• Strategies to reduce your CGT liability, such as applying losses, the CGT discount, and small business concessions (17:50)
• Top three tricks and traps to be aware of when dealing with CGT (21:15 - 24:30)
  
  

Whether you're a seasoned investor, a small business owner, or simply looking to optimize your tax strategy, this episode is a must-listen. Sally's comprehensive approach and practical insights will empower you to confidently navigate the world of capital gains tax, unlocking opportunities for financial success.
CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Plagued by endless questions surrounding budgeting and forecasting? You’ve come to the right place! In this information-packed episode, Sally Preston and Ellie Murdoch delve into the importance of budgeting and forecasting for small businesses.  As April marks the time when you should start work on setting your budget for the 2025 financial year, they share invaluable tips and strategies to help you create an effective budget and forecast for your business.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• Why budgeting is crucial for setting goals, making informed decisions, and ensuring accountability (2:17)
• How to start budgeting: Understanding your business drivers, cash flow nature, and involving your team (8:55)
• Budgeting for profitability: Revenue projections, expense analysis, and managing recurring and variable costs (10:21)
• The importance of the balance sheet and assessing the true value of your assets and liabilities (16:10)
• Forecasting cash flow: Creating a three-way forecast (P&L, balance sheet, and cash flow) and scenario planning (21:48)
  
  

Remember, budgets provide a roadmap for measuring success, enabling better decision-making, and promoting accountability. Make it a point to involve your team in the budgeting process to gain valuable insights and foster a sense of ownership. 

Overall, Sally and Ellie offer practical advice and real-world examples to help you master budgeting and forecasting, essential pillars for achieving long-term business success.
CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Confused about FBT? Or maybe you would just prefer to bury your head in the sand and hope you aren’t providing your employees fringe benefits. Unfortunately, if you are providing benefits, there is an increasing chance the ATO will pick up on it. So, in this episode, Sally Preston and Ellie Murdoch dive into the topic of Fringe Benefits Tax (FBT) to demystify some of the most common benefits you may be providing. Ellie answers five essential questions to help employers navigate FBT compliance.

In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• What is Fringe Benefits Tax and common fringe benefits (1:52)
• Compliance obligations for employers providing fringe benefits (3:34)
• Implications for employees receiving fringe benefits (23:08)
• Common mistakes businesses make when preparing FBT returns (26:06)
• Due dates for lodging FBT returns (27:24)
  
  

If you’re an employer or business owner, this episode will help you gain invaluable insights and guidance for staying compliant and avoiding costly mistakes during the FBT season.
CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/ 

Are you a business owner facing financial challenges? Don't know where to turn or what your options are? In this episode, Sally Preston talks again to Mitchell Herrett, a partner at RSM in the restructuring and recovery division. Mitch provides an in-depth look at the various options available for individuals and businesses facing financial challenges and insolvency. 
In this episode of the Smarten Up! The Tax and Business Podcast, you'll learn:

• The role of a restructuring and recovery professional (3:44)
• Options for businesses facing financial distress (4:01)
• The priority order for creditor payments in a liquidation or deed of company arrangement (7:36)
• The risks and responsibilities of trading a company while in voluntary administration (14:34)
• The process and implications of liquidation for a company (16:54)
• Understanding voidable transactions and their consequences (22:45)
• The Small Business Restructuring process and its eligibility criteria (19:41)
• Bankruptcy for individuals, including potential asset recovery by trustees (27:56)

Whether you're a small business owner, a director of a medium-sized enterprise, or simply someone interested in understanding the ins and outs of corporate financial challenges, this episode is a must-listen as Mitch provides a comprehensive overview of the various insolvency processes, creditor priorities, and the potential consequences for directors and individuals. 

CONNECT WITH SALLY PRESTON

Website: http://www.smartsolutionstax.com.au/

Facebook: https://www.facebook.com/SmartSolutionsTax

Instagram: https://www.instagram.com/smartsolutionsau/

Smarten Up - The Tax and Business Podcast Facebook: https://www.facebook.com/profile.php?id=61555018481517

Smarten Up - The Tax and Business Podcast Instagram: https://www.instagram.com/smarten_up_podcast/

LinkedIn: https://www.linkedin.com/company/smart-solutions-tax-and-business-advisory/