Key action points for Doctors in the yearly Tax Cycle
October 5th, 2012
As with most things in life, having a system or a process will usually lead to greater efficiency. The same is true when it comes to looking at the yearly cycle of tax and finance.
There are 2 keys tax cycles that doctors should be aware of – the financial year of 1 July to 30 June; and the fringe benefits year which runs 1 April to 31 March. So let’s run through some key dates where you should be reviewing, submitting or implementing changes.
- Implement New Year’s resolutions!
- Look at your salary packaging summary for the year and make sure you are on track to maximise your benefits before March 31. ($9,095 Fringe Benefit limits)
- New positions usually start and so you should be revisiting your budget and regular savings plans
- Review your income protection to ensure your new income level is covered
- Submit your BAS for ABN income in the December quarter
- Final month of the Fringe Benefits year, last chance to top up your salary packaging
- Set your salary packaging arrangements for the next year
- Submit your BAS for ABN income in the March quarter
- Year-end tax planning
- Review super contributions
- Look at prepaying expenses
- Look at delaying ABN income if possible to a receipt in July
- Check the Federal Budget to see if any taxation changes affect your overall situation and plan
- Pay your top up contributions to super before June 30
- Chase up group certificates and start getting ready for your tax return
- Contact MEDIQ and make a time to complete the return in Aug/Sept (if you are waiting on managed fund statements you may need to wait until October)
- Set your salary sacrifice arrangements for super to ensure your annual contributions achieve the desired outcomes by next June
- Submit your BAS for ABN income in the June quarter
- Lodge your tax return and wait for your refund
- With the receipt of your tax refund it is a good time to review your investment portfolio and consider any changes that may be required
- The conclusion of new financials for the previous year, your ability to borrow and leverage will also have improved, possibly an investment property as the market activity increases through spring
- Submit your BAS for ABN income in the September quarter
- Review your estate plan and nominated superannuation beneficiaries as you run into the Christmas period
- Have an enjoyable holiday season.
As you can see there is a financial activity that falls in every month, which means you spread out your financial decision making and break it down into bite sized pieces. This not only makes the process of good financial management less intimidating but also allows you to focus on the key issue for the month, in the right month!
A good accounting and financial planning relationship will address all of these issues and provide you the support to make the right decisions. Please contact MEDIQ if you need this support.