As the end of financial year approaches, tax planning should be a priority for business owners, investors and private groups. Effective tax planning is not about pursuing aggressive strategies or making decisions purely to reduce tax—it is about proactively understanding your likely tax position, managing cash flow, and ensuring the right actions are taken before 30 June to achieve the best commercial and tax outcome.
A well-executed tax planning process can help identify opportunities, mitigate risks and avoid year-end surprises. With increased ATO scrutiny across several compliance areas, early planning is more important than ever.
Why tax planning is important
Improves cash flow management
Understanding your expected tax liabilities before year end allows you to better manage working capital and avoid unexpected obligations.
Identifies legitimate tax saving opportunities
Reviewing your financial position before 30 June can highlight deductions, concessions and structuring opportunities that may otherwise be missed.
Supports better business decisions
Tax planning should complement commercial decision-making, helping business owners assess the after-tax impact of key decisions.
Reduces compliance risk
A proactive review can identify issues before year end and ensure documentation and compliance requirements are met.
Key tax planning considerations for 2026
1. Review business profit and forecast tax liabilities
Understanding year-to-date performance and forecasting full-year profit provides the foundation for effective tax planning. This allows businesses and individuals to estimate tax payable and consider planning opportunities before 30 June.
2. Bring forward deductible expenses where appropriate
Consider whether legitimate business expenses can be incurred before year end, such as:
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Professional subscriptions
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Insurance premiums
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Repairs and maintenance
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Training and development cost
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Certain prepaid expenses
3. Review asset purchases and capital expenditure
Businesses planning to acquire equipment, technology or vehicles should consider whether purchases can be brought forward to maximise available depreciation deductions or other concessions.
Eligible small businesses using simplified depreciation can generally claim an immediate deduction for assets costing less than $20,000 if first used or installed ready for use by 30 June 2026.
4. Write off bad debts and obsolete stock
To claim deductions this financial year:
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Bad debts must generally be formally written off before 30 June
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Obsolete or damaged stock should be reviewed and adjusted where appropriate
5. Consider superannuation contributions
Superannuation remains a tax-effective planning tool for many individuals and business owners. Important considerations include:
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Contribution caps and carry-forward concessional contributions
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Timing of employer contributions (must be received by the fund before 30 June to be deductible this year)
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Personal deductible contribution opportunities
6. Review trust distributions and resolutions
Trustees should ensure trust distribution strategies are reviewed well before year end and that distribution resolutions are properly prepared and executed in accordance with trust deed requirements.
7. Manage Division 7A and related party loans
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Private companies and shareholder groups should review:
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Shareholder loan balances
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Minimum yearly repayments
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Compliance with Division 7A loan agreements
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Unpaid present entitlements and related party arrangements
8. Review capital gains and losses
For investors and private groups:
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Consider timing of asset disposals
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Review unrealised gains and losses
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Assess availability of carried forward capital losses
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Consider CGT discount eligibility
9. Get ready for Payday Super
From 1 July 2026, super guarantee will generally be due on payday, Businesses should ensure their payroll systems, cashflow and clearing house processes are ready.
Areas receiving increased ATO attention
Businesses and individuals should take particular care in areas currently subject to increased ATO scrutiny, including:
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Trust distributions and section 100A arrangements
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Division 7A compliance
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Business versus private expense claims
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Motor vehicle and travel deductions
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Record keeping and substantiation
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GST and payroll tax treatment of contractors
Start early
The most effective tax planning occurs before the final weeks of June. Early planning provides time to:
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Model different scenarios
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Implement strategies correctly
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Obtain required documentation
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Make informed commercial decisions rather than rushed tax-driven choices
How we can help
Our Business Advisory team works closely with clients to deliver tailored tax planning advice aligned with their commercial objectives. We help businesses and individuals understand their position, identify opportunities, and implement practical strategies before year end.
If you would like assistance with your 2026 tax planning, contact our team to arrange a planning review before 30 June.
