A routine consultation turned into a financial breakthrough
When Daniel, the son-in-law of a long-standing client, approached us for advice, he was looking for guidance on transitioning a long-term employee into a partnership in his business. What started as a straightforward consultation quickly became a transformative moment for Daniel’s financial future.
The initial review
Our process began with a comprehensive financial intake, including:
✔ Business financials
✔ Personal income tax returns
✔ A full review of Daniel’s family’s net financial position, debts, and interest rates
We quickly identified a critical issue: Daniel’s most recent two years of financial statements and tax returns had been prepared but not lodged.
While this may have seemed like a minor oversight, it turned out to be a fortunate delay—one that saved him a significant sum.
Identifying the problem: An $80,000 tax mistake
A deeper analysis revealed a critical issue: Daniel’s accountant had completed his compliance documents without proper tax optimisation. If filed as prepared, these returns would have resulted in:
🚨 Over $80,000 in unnecessary tax payments due to non-optimal income structuring and shareholder distributions
Delivering the solution
Using our in-depth knowledge of taxation and corporate structuring, we:
✅ Restructured Daniel’s tax returns, ensuring compliance while optimising his financial position
✅ Achieved over $80,000 in tax savings
✅ Secured thousands of dollars in additional family tax benefits
✅ Reduced Division 293 tax liabilities, significantly lowering his additional tax obligations
As a result, Daniel and his family were thrilled with the outcome. The $100,000 + savings we secured effectively covered our fees for the next decade—a true win-win.
Uncovering Additional Issues
Our review didn’t stop there. While analysing Daniel’s books, we uncovered another costly error—his independent bookkeeper and accountant had incorrectly categorised his business income as subject to GST.
The Impact:
🚨 Daniel had been overpaying 10% of his income to the Australian Tax Office (ATO).
We immediately began rectifying this issue and are now working with the ATO to recover as many years of overpayments as possible
