As we approach the end of the 2025–2026 financial year, it’s the perfect time to take a closer look at your tax position. Whether you’re an employee, a “mum and dad” investor, or a small business owner, effective tax planning can help you legally minimise the amount of tax you pay – and put you in a stronger financial position heading into the new financial year.

In this article, we’ll walk through what tax planning is, why timing matters, and some practical strategies you can consider before 30 June 2026.

What Is Tax & Cash Flow Planning?

Tax planning is simply the process of reviewing your financial situation before the end of the financial year and taking steps to lawfully reduce your tax liability and preserve your cash flow for what is important.

Why Timing Matters

One of the biggest factors in tax planning is timing – specifically, when income is received and when expenses are incurred.

In Australia, tax is generally assessed based on what happens within the financial year (01 July to 30 June). This means that small timing differences can have a real impact.

Bringing Expenses Forward

If you’re expecting a higher income this year, it may make sense to bring forward deductible expenses into the current financial year to reduce taxable income. For example: 

• prepaying certain expenses (such as insurance or subscriptions).
• purchasing work-related items before 30 June.
• making repairs or maintenance on investment properties. 

Deferring Income (where appropriate)

In some cases, it may be possible to legitimately defer income until after 30 June, particularly for business owners or individuals with control over when income is invoiced or received. For example:

• delaying issuing invoices until July (if commercially appropriate).
• timing asset sales to manage capital gains.

It’s important to note that the Australian Tax Office (ATO) expects transactions to reflect genuine commercial activity, so any decisions should make sense from a business or financial perspective – not just for tax.

Common Tax Planning Strategies

Below are some practical strategies that individuals and small business owners often consider. Not all will apply to everyone, but they provide a useful starting point. 

For Small to Medium Business Owners

01. Instant Asset Write-Off and Depreciation

Depending on current rules and thresholds, you may be able to: 

• immediately deduct the full cost of eligible business assets, or
• accelerate depreciation deductions. 

This can be particularly useful if you’ve been planning to invest in equipment or vehicles.

02. Review Debtors and Bad Debts

Before 30 June: 

• review your accounts receivable.
• write off any genuinely unrecoverable debts. 

This allows you to claim a deduction. 

03. Pay Employee Super on Time

To claim a deduction for super contributions for employees, they must be paid to super funds before 30 June (not just accrued).

This is especially relevant this year, as Payday Super takes effect from 01 July.

04. Stock Valuation

Businesses holding inventory can review stock and:

• write off obsolete or damaged stock.
• choose an appropriate valuation method (cost, market selling value, or replacement cost). 

This can impact your taxable income. 

05. Trust Distribution Planning

If you operate through a trust structure, planning distributions before year-end is critical: 

• ensure resolutions are prepared correctly.
• consider the tax position of beneficiaries.

For Individuals and Investors

01. Maximise Super Contributions and even utilise unused balances

Contributing to superannuation can be one of the most tax-effective strategies available. 

• Concessional contributions (such as salary sacrifice or personal deductible contributions) are generally taxed at 15% within the fund, which is often lower than your marginal tax rate.
• Make sure you stay within your contribution caps to avoid additional tax. 

02. Claim All Eligible Deductions

Make sure you’re capturing all legitimate deductions, such as: 

• work-related expenses (uniforms, home office, tools).
• self-education expenses.
• tax agent fees.
• donations to registered charities. 

Even small deductions can add up over time.

NB : The proposed $1,000 receipt-free deduction on work-related expenses doesn’t start until the 2026-2027 FY. 

03. Review Investment Income and Capital Gains, especially given the 2026 Budget announcements

If you’ve bought or sold investments during the year: 

• Consider Capital Gains Tax (CGT) implications.
• Check whether you’re eligible for the 50% CGT discount (for assets held longer than 12 months).
• Offset capital gains with any capital losses. 

Timing the sale of assets can significantly affect your tax outcome.

04. Prepay Interest on Investment Loans

Investors may be able to prepay interest on an investment loan and claim the deduction in the current year (depending on circumstances).

Don’t Overlook Record-Keeping

Good tax planning relies on good records. Make sure you: 

• keep receipts and documentation.
• track work-related and business expenses clearly.
• separate personal and business finances where possible.

Digital tools and accounting software can make this much easier and reduce stress at tax time.

The Importance of Professional Advice

While there are many strategies available, tax planning is not one-size-fits-all.

What works for one person or business may not work – or may even create problems – for another. Our qualified accountants and financial advisers can: 

• assess your specific situation.
• ensure you’re complying with ATO requirements.
• help you avoid unintended consequences.
• identify opportunities you may not be aware of. 

Importantly, they can also help you plan ahead, not just react when it’s too late.

Final Thoughts

EOFY tax and cash flow planning isn’t just about ticking boxes – it’s about making smart, informed financial decisions before 30 June.

By understanding how the system works, paying attention to timing, and seeking the right advice, you can:

• reduce your 2025–2026 tax liability now.
• improve your cash flow.
• set yourself up for a stronger financial year ahead.

If you haven’t reviewed your position yet, now is the time to act. Even a few simple steps can make a meaningful difference.

If you'd like to discuss tax planning strategies for this financial year, you can contact us here or head to our Year End Planning page to book a time. And we're always just a phone call away too.