As the end of the financial year approaches, many business owners find themselves juggling competing priorities and feeling unsure about where to focus.
With recent Federal Budget proposals adding further complexity, now is the time to stay informed, get organised, and take proactive steps to position your business for success.
Whether you’re looking to maximise deductions or reviewing your business structure, EOFY is the perfect time to take stock. To support you, we’ve compiled a practical business tax planning checklist highlighting key opportunities and important changes taking effect from 1 July 2026.
Whether you’re a sole trader, company, or trust, these tax planning strategies may help optimise your end-of-financial-year outcome. While this guide provides a strong starting point, working closely with your accountant is essential to ensure your EOFY strategy is tailored to your specific circumstances.
1. Take advantage of the instant asset write-off
If you’re classified as a small business with an aggregated turnover of less than $10 million, you may be eligible to claim an immediate tax deduction for assets costing less than $20,000.
A key condition is that the asset must be first used or installed ready for use by 30 June.
While this measure was originally due to be phased out by 30 June 2026, the Government has proposed extending the $20,000 threshold indefinitely from 1 July 2026. Although this has not yet been legislated, it may provide ongoing access to this concession, easing concerns for businesses that were planning around its removal.
Before making any purchasing decisions, consider your cash flow position and whether it is more beneficial to bring forward the deduction or defer it.
2. Consider deferring income and prepaying expenses
By deferring income to the next financial year or bringing forward expenses, businesses may be able to reduce their taxable income.
However, it’s important to carefully consider whether this strategy is appropriate for your business, taking into account cash flow, projected profits for the following year, and ongoing compliance obligations.
Strategies to consider include:
- Delaying the issue of invoices until July, if cash flow permits.
- Prepaying up to 12 months of eligible expenses, such as rent or subscriptions, where the rules allow.
- Reviewing whether profits are expected to be lower next year than they are this year.
3. Review your business structure
EOFY is a good time to consider whether your current business structure is still right for your business.
Businesses evolve, and the structure you started with may no longer suit your goals or be the most tax-effective option available. Speaking with your accountant about your current structure may help identify opportunities to improve efficiency and support future growth.
4. Reduce tax by writing off bad debts
No one likes a bad debt, but they are a reality for most businesses.
If you have aged receivables that are unlikely to be recovered, they may be eligible to be written off, which could improve your tax outcome for the end of financial year. However, debts can only be written off where reasonable steps have been taken to recover them and appropriate documentation is retained to support those efforts.
5. Review your asset register
EOFY is a good time to remove obsolete, damaged, or unused plant and equipment from your fixed asset register.
This helps ensure your depreciation claims remain accurate and reflects the current state of your assets. Reviewing your register may also identify opportunities to improve your tax position before 30 June.
6. Pay superannuation before 30 June
Superannuation is generally only deductible when it is paid.
To claim a deduction this financial year:
- Superannuation payments, including June quarter obligations, must be received by the super fund before 30 June.
- Personal concessional contributions must be received before EOFY and remain within the applicable contribution caps.
For business owners making additional contributions, it is important to speak with both your super fund accountant and wealth advisor to ensure the strategy supports your broader financial and business goals.
Businesses should also be aware that Payday Super is scheduled to commence from 1 July 2026. This may make superannuation obligations easier to manage by spreading payments throughout the year rather than concentrating them into quarterly deadlines.
Please refer to our article for more detail on the changes and what businesses need to do to comply.
