Tax planning plays a vital role in managing finances for businesses in the manufacturing sector. Dianne Pham, Senior Accountant at BlueRock, shares six tax planning strategies that can help manufacturers optimise tax efficiency, reduce tax liabilities, and improve cash flow.
Claim deductions for capital expenditures
Manufacturers often need to invest in equipment, machinery, and other assets, especially to increase efficiency and stay competitive in the climate of Industry 4.0. Depending on the applicable legislation, these expenditures can be instantly written off or claimed as deductions over several years, which can reduce the taxable income of businesses.
Businesses with a turnover under $5 billion can claim an immediate deduction on…
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