As we edge closer to the end of the financial year, there’s no better time than now to start thinking about your tax planning. Whether you’re a business owner, a sole trader, or just preparing your personal tax return, smart tax planning can help you save money, reduce stress, and stay on the right side of the ATO.
But where do you start? Don’t worry—we’ve got you covered. This blog post breaks down the key opportunities and potential risks you need to be aware of before 30 June. Let’s take a closer look at how you can prepare and make the most of your year-end tax strategy.
Why Year-End Tax Planning Matters
Think of year-end tax planning like a financial spring clean. You get a chance to:
- Maximise your deductions
- Reduce your overall tax bill
- Stay compliant with the Australian Taxation Office (ATO)
Proactive planning helps you avoid last-minute surprises. Plus, it can significantly improve your cash flow and help you make smarter financial decisions going forward.
Key Tax Planning Opportunities to Explore
There’s more than one way to maximise your tax position. Below are some of the strategies that are commonly used by smart business owners and individuals—just be sure to tailor them to your specific situation.
1. Accelerate Your Expenses
One simple yet effective tactic is to bring forward your business expenses before 30 June.
If you know you’re going to need to purchase office supplies, new equipment, or even pay future services, doing it now can let you claim the deduction this financial year instead of the next.
Some examples of expenses to consider:
- Annual subscription fees for software or tools
- Office equipment or technology upgrades
- Prepaying rent or insurance
Tip: This strategy works best if you’re using a cash accounting method.
2. Review Your Debtors and Write Off Bad Debts
Do you have unpaid invoices that are unlikely to be collected?
If so, now is the time to tidy them up. Writing off bad debts by 30 June allows you to claim a deduction and reflect a more accurate income figure.
To do this, make sure you’ve made every reasonable effort to recover the money and document your decision clearly in your records.
3. Boost Superannuation Contributions
Adding to your super not only helps secure your future—it can also lower your tax bill right now.
– There’s a concessional contributions cap of $30,000 for the 2025 and 2026 financial years.
– You may be able to carry forward unused cap amounts from the previous five years.
You’ll need to make personal contributions before 30 June and give your super fund a ‘notice of intent to claim’ if you plan to claim it as a tax deduction.
Important: Make sure the payment is received by your super fund in time. Even a one-day delay could push it into the next year.
4. Manage Your Capital Gains
If you’ve sold assets like shares or property during the year, you may have made a capital gain. To reduce the tax payable, you could:
- Offset gains with capital losses, if you’ve also sold assets at a loss
- Hold assets for more than 12 months to be eligible for the 50% CGT discount (for individuals and trusts)
Timing is everything with CGT, so speak with an accountant to help you plan strategically.
Be Aware of ATO Tax Traps
While it’s great to know how to save tax, you also need to be mindful of what might draw attention from the ATO. Some deductions and strategies that were fine in the past are now on their radar.
Watch Out for ATO Focus Areas
This year, the ATO will be focusing closely on the following:
- Incorrect work-from-home deductions – especially those using outdated shortcut methods
- Rental property claims – particularly repairs, interest deductions, and travel expenses
- Trust distributions – the ATO is looking closely at ‘non-commercial arrangements’
Are any of these relevant to you or your business? If so, it’s crucial to double-check that your records are clear, accurate, and up-to-date.
Tips for Small Business Owners
Running a business adds another layer to your year-end tax planning. But the good news is, there are also more opportunities to lower your tax if you plan ahead.
Consider Instant Asset Write-Off
Until 30 June 2026 (subject to updates), eligible businesses can deduct up to $20,000 of new and second-hand business assets.
This includes things like:
- Vehicles used predominantly for business
- Machinery or tools
- Computer equipment or furniture
This can significantly reduce your taxable income this year.
Check Your Business Structure
Is your current business structure still working in your favour? Many small businesses start as sole traders but later find a trust or company structure offers better asset protection and tax benefits.
An accountant can help you assess whether a restructure makes sense—just keep in mind that any changes should be supported by documentation and a legitimate business purpose to avoid ATO scrutiny.
Planning Ahead: Use Your Accountant as Your Guide
Tax planning doesn’t mean finding sneaky ways to dodge tax. It’s about using what’s legally available to your advantage—and doing it before it’s too late.
A qualified accountant can:
- Review your current income and expenses
- Identify opportunities for deductions or tax savings
- Ensure compliance with new ATO rules
- Help with super, trust distributions, or asset purchases
Think of your accountant as your tax-season GPS—helping you navigate twists, turns, and roadblocks along the way.
Want help getting your tax strategy sorted before 30 June? At Prudent Accountants & Co, we work closely with individuals and businesses to simplify the process, highlight savings, and stay fully compliant with tax rules. Let’s make tax time work in your favour.
Disclaimer: This article is intended to provide general information only. It does not constitute tax, financial, or legal advice. You should seek professional advice tailored to your specific circumstances before making any decisions.
