I don’t want to pay so much tax, can you help me?
This has to be the most common question I get asked.
First, remember Death & Taxes! They are unavoidable.
However, we hear of large companies the likes of Google and Apple who seemingly either avoid paying tax or pay an incredible minimum amount. And we hear of wealthy individuals who do the same.
So how do they do it?
I’m not going to even begin to explain how Google or Apple can minimise their tax bill – believe me, they have many accountants on their team whose job is to solely do this!
However, as a small-medium business or an ‘average’ individual – you can employ some simple tactics to at least minimise the amount of tax.
Let me first state that taxes are not necessarily a bad thing and before you stop reading – let me explain.
So, what happens when the government collects tax – where does this money go?
Here are some areas governments spend your tax dollars on:
Social security, welfare and pensions – helping the aged, unemployed and people with disabilities
Health – Medicare
Transport and Communications
Housing & Community amenities
Public order and Safety – essential services (police, ambulance, fire fighters, SES)
And while these services may not be perfect, in Australia we do have one of the better tax supported services in the world.
Let’s now get back to the original question
This is really a question about tax minimisation.
However, tax minimisation is not an end in itself – rather, it’s a strategy (an investment strategy), that should be part of your overall, bigger picture.
And that bigger picture is all about wealth creation.
And when it comes to the question of ‘how can I pay less tax’, often we may need to say to some of our clients – you can’t.
Rather than looking at how can I save on paying tax, you need to be looking at how can I grow my wealth for a better, more financially secure future.
As accountants, our job is to work with you to help identify your needs when it comes to your financial future.
Then we can guide you to the right experts who can help shape your financial future.
So, rather than just focusing on one need such as how can I pay less tax, it’s more beneficial to look at the bigger financial picture and that starts by understanding what are your financial objectives.
Today, accountants are well equipped to at least provide you with the level of advice that can get you started on your financial journey.
And while we may not have all the answers or solutions, we are however well connected and know subject matter experts who can provide you with the specific advice and solutions for your financial needs.
Finally, accountants also need to go beyond compliance and start to educate their clients – the more knowledgeable you are, the more interest you’ll have in your financial matters and that’s the key to success.
At Aperture Accounting, this is what we do – we work with our clients to understand their financial needs and we work to figure how best to meet these needs and in the process, we help our clients to better understand their financial world.
At Aperture Accounting, we feel our job is to help shape and design a better financial future for our clients.
To find out more, call 1300 APERTURE or 1300 273 788.