Not all tax planning is created equal. The General Anti-Avoidance Rules (GAAR) in Part IVA of the Income Tax Assessment Act 1936 give the ATO sweeping powers to unwind transactions it sees as tax avoidance – and impose penalties of up to 50% of the tax payable. Key questions Part IVA asks: Was there a scheme? Was a tax benefit obtained (e.g.,…
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As accountants, we’re trusted to help clients reduce tax legally. But there’s a fine line – and some go way over it. The ATO estimates 1.6 million businesses are part of Australia’s illegal cash economy. And that’s just the beginning. Here are just a few of the 15 most common illegal tax strategies: Paying or receiving undeclared cash wages Not…
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Implementing industry: Building & construction Original service level: Annual compliance – $3,000/year Background Two years ago, a mid-sized accounting firm was providing basic compliance work for a building industry client. The business was turning over $12 million a year, but despite the size, profitability was low. Two working directors were taking home only $300,000 combined in…
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In Australia, we’re privileged to live in a safe, prosperous society — one supported by a tax system that works because most individuals and businesses pay their fair share, voluntarily and lawfully. At TaxFitness, we believe that minimising tax within the boundaries of the law is not only legal — it’s encouraged. Complying with the law to reduce…
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Are you helping your clients use them wisely? According to the Commonwealth Treasury’s Tax Expenditures Statement (2016), these are Australia’s most costly but legal tax breaks: Main residence CGT exemption: $61.5B Concessional tax on super earnings: $16.9B Concessional tax on super contributions: $16.9B CGT discount for individuals/trusts: $9.6B GST exemption – fresh food: $6.9B GST exemption…
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You can have the best tax planning report in the world, but if nothing is implemented, your client saves $0. Implementation is where tax planning becomes real It’s the final and most critical step in the process. Here’s why implementation matters: Turn strategy into action — move from theory to results Maximise tax savings —…
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Tax planning isn’t just about running numbers or generating reports. The true value lies in the advisory meeting — the conversation that transforms strategy into action. This is where accountants elevate their role from compliance processors to trusted strategic advisors. Here’s how high-performing firms deliver maximum impact in client meetings: Present the tax planning report with clarity and purpose Walk…
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Tax planning isn’t just about strategy — it’s about how clearly and professionally you present the advice. Here are 10 essential elements every TaxFitness report includes to deliver clarity, confidence, and action: Personalised Advice – Tailored to the client’s unique situation. No cookie-cutter templates. Quantify Tax Savings – Show estimated $ savings for each strategy and the total benefit.…
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“Data is not information, information is not knowledge, knowledge is not understanding, understanding is not wisdom.” – Clifford Stoll Too many accountants are doing tax planning without providing a formal, client-ready report. If that’s you, here’s the problem: You’re giving away valuable advice without packaging it in a way that demonstrates your expertise, builds trust, and justifies…
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Still relying on memory and manual research to select tax strategies for clients? Here’s how TaxFitness AI transforms the process, used by 500+ accountants nationwide: Manual (traditional) TaxFitness AI (smart Selection) ❌ Slow & time-consuming ✅ Instant recommendations from full database ❌ Missed strategies likely ✅ Comprehensive, nothing overlooked ❌ Inconsistent advice ✅ Consistent, top-tier strategy every time ❌ Requires deep manual knowledge…
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2