42 Advisory accountants collaborating with Melbourne business clients on financial strategy and reporting

Strategic Tax Advice for Melbourne Businesses & Professionals

Tax Planning Services for Melbourne Businesses

Proactive, fixed-fee tax planning that reduces surprises, protects cash flow and keeps your structure aligned with where your business is heading — not just where it’s been.
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Our Tax Planning Approach

Proactive Tax Planning Built Around Your Goals

Tax planning isn’t just about reducing tax — it’s about making smarter decisions before the financial year ends. At 42 Advisory, we help Melbourne business owners, founders and professionals forecast their results, understand upcoming liabilities and take strategic action with confidence.

We analyse your year-to-date performance, map out expected profits and identify the most effective tax strategies for your structure — whether you operate as a sole trader, company, trust or partnership. You get clear explanations, practical recommendations and step-by-step guidance, without the jargon or guesswork.

Our goal is simple: make tax planning predictable, compliant and aligned with your bigger picture — so you can move forward without surprises or last-minute stress.

Key Areas We Cover

Tax Strategies & Advisory Services

Tax Projection for the Financial Year

We forecast your expected profit, tax position and cash requirements so you know exactly where you stand before 30 June — no surprises at lodgement time.

Strategy Review & Recommendations

We review your current tax position, structure and deductions, then outline tailored strategies to improve tax efficiency while staying fully ATO-compliant.

Business Structure Review & Selection

We assess whether your existing structure (company, trust, partnership, sole trader) is still the most appropriate and guide you through restructuring options when needed.

Dividend & Distribution Planning

Plan timing and amounts for company dividends or trust distributions to optimise tax outcomes and manage personal income levels.

Division 7A Planning

Assess exposure to Div 7A loan issues and Div 293 additional tax for high earners, ensuring compliance and avoiding unexpected assessments.

For Melbourne Small Businesses

Built for Simplicity. Backed by Strategy.

We help you stay compliant, save time, and get real financial clarity — with fixed fees, cloud tech, and expert support at every stage of your business.
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One Advisor, Full Visibility

Work directly with a senior advisor who understands your business, not a rotating team. Get consistent advice and full transparency into your financial position—anytime, anywhere

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Strategic, Not Just Compliant

We go beyond lodging BAS and tax returns. Our advisors support your business with financial modelling, growth planning, and investor-ready insights designed for long-term success.

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Tailored for Melbourne SMEs

We specialise in helping local businesses—from medical clinics and ecommerce brands to IT startups and cafes—navigate tax, cash flow, and growth with confidence.

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Why Choose 42 Advisory

Tax Advisors Who Do More Than Crunch the Numbers


Bar chart icon representing financial growth and cloud accounting systems like Xero and BI reportsPlan With Clear, Forward-Looking Tax Strategies
We map out your projected profit for the year, model different tax outcomes, and outline the strategies that will make the most significant impact — from timing decisions to deductions, contributions and structure optimisation.


Checklist icon symbolising comprehensive tax, BAS, payroll, and compliance services for small businessesSmarter Structures for Growing Businesses
Whether you’re operating as a sole trader, company or trust, we assess if your structure is still the right fit. If not, we recommend practical, compliant options that reduce risk, manage tax efficiently and support long-term growth.


Presentation board icon representing strategic business advisory and performance review meetingsProactive Advice Before It’s Too Late
Instead of waiting until tax time, we meet with you during the year to identify opportunities early — managing CGT events, PAYG variations, Division 293, Div 7A exposure and profit extraction strategies before the financial year ends.

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Designed For Growth

One Partner for Tax Planning, Advice & Smarter Business Decisions

Small business owners need more than end-of-year compliance — they need a partner who understands their direction and plans ahead with them. At 42 Advisory, we combine proactive tax planning with ongoing advisory so you always know what’s coming, what to prepare for and how to make confident, well-timed decisions.

From forecasting profits and minimising tax to optimising structures, dividends, contributions and cash flow, we help you stay one step ahead all year round. Whether you’re laying the foundations or scaling fast, our Melbourne team ensures your strategy is clear, compliant and built for long-term success — with the calm, predictable guidance you’d expect from a firm called 42.

 
Asset 39Fixed Monthly fees
 
Asset 36Fully digital, Streamlined Setup
 
Asset 20Personalised, Proactive Support
 

YOU MAY NEED TO KNOW

Frequently Asked Questions About Tax Planning in Melbourne

What is tax planning?

Tax planning is the proactive and strategic structuring of your financial affairs to legally minimise tax before 30 June.

Unlike tax compliance (which reports what has already happened), tax planning:

  • Forecasts your current-year tax position
  • Reviews your full business and personal structure
  • Identifies legally available strategies
  • Quantifies tax savings before implementation
  • Aligns strategies with your long-term goals

It is designed to reduce tax, improve cashflow and strengthen wealth outcomes — not simply lodge returns.

What is the difference between tax planning and tax compliance?

Tax compliance involves meeting legal reporting obligations — such as lodging tax returns or BAS.

Tax planning involves:

  • Reviewing over 200 potential strategies
  • Selecting the ones appropriate to your circumstances
  • Forecasting tax liabilities
  • Structuring entities for long-term efficiency
  • Identifying risks (Div 7A, CGT exposure, FBT issues)
  • Ensuring cashflow is available for future tax payments

Compliance reports the past.
Tax planning shapes the future.

When should tax planning be done?

Effective tax planning is conducted before 30 June.

However, sophisticated businesses review strategy throughout the year — especially before:

  • Business expansion
  • Asset purchases
  • Trust distributions
  • Superannuation contribution decisions
  • Property transactions
  • Business restructuring

Waiting until July removes most meaningful tax-saving opportunities.

Is tax planning legal?

Yes — when done properly.

Tax planning arranges your affairs within the letter and spirit of Australian tax law.

It is different from tax avoidance schemes, which attempt to exploit loopholes outside legislative intent.

A properly documented tax planning process:

  • Quantifies savings
  • Details implementation steps
  • Assesses compliance risk
  • Avoids general anti-avoidance provisions

42 Advisory operates strictly within Australian taxation law and ATO guidance.

How does the tax planning process work?

A structured tax planning engagement typically includes:

  1. Information gathering — understanding your financial position and goals
  2. Forecasting current-year income across all entities
  3. Reviewing structures (companies, trusts, SMSFs)
  4. Selecting appropriate strategies
  5. Quantifying projected tax savings
  6. Producing a written tax planning report
  7. Advisory meeting to review options
  8. Implementation support

This systematic approach ensures strategies are defensible and aligned with your objectives.

Who benefits most from tax planning?

Tax planning is particularly valuable for:

  • Business owners
  • Medical professionals
  • Property investors
  • High-income earners
  • Growing SMEs
  • Trust and company structures
  • SMSF holders

Business owners often have multiple income streams and structural options that significantly impact tax outcomes.

How much can tax planning save?

Savings depend on:

  • Income level
  • Business structure
  • Available strategies
  • Cashflow capacity
  • Timing of decisions

In professional practice, strategies must generate at least 3x the advisory fee in client benefit to proceed — ideally 5–10x.

This ensures tax planning is commercially worthwhile, not theoretical.

Is tax planning only about saving tax this year?

No.

Effective tax planning considers:

  • Future tax profile
  • Retirement planning
  • CGT on business sale
  • Superannuation strategy
  • Asset protection
  • Wealth transfer and estate considerations
  • Payroll tax, land tax and stamp duty exposure

It is both short-term and long-term strategic planning.

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