12+ Year End Tax Planning Tips – 30 June 2026
It is hard to believe that the end of the financial year is within sight. Below are some important tax planning opportunities to consider in the lead-up to 30 June 2026. Taking action before year end can help reduce your tax liability, improve cash flow and ensure compliance with ATO requirements.
Federal Budget changes May 2026
Refer to out Budget release here for current year end and future tax planning
$20K instant asset write-off for small businesses.
$20K instant asset write-off concession has been permanently extended. This allows small businesses (turnover < $10 million) to immediately deduct the full cost of eligible depreciating assets (new and 2nd hand) costing less than $20,000 that are first used or installed ready for use for a taxable purpose .
Superannuation contributions*
- Employers wishing to get the full tax deduction in FY26 for Superannuation Guarantee contributions, should ensure those contributions are received by the employees funds by 20 June 2026.
- Individuals wishing to make contributions up to the concessional cap ($30,000) and/or non-concessional cap ($120,000, or up to $360,000 “brought forward”) should do so by 20 June 2026.
- Consider Carried forward unused concessional caps – With a superannuation balance of less than $500,000 on 30 June of the previous financial year, you may contribute more than the $30,000 concessional contribution limit for any unused amount from the year ended 30 June 2021. Unused amounts are available for a maximum of 5 years.
- Spouse Contributions: If your spouse earns less than $37,000, contributing up to $3,000 into their super could entitle you to a tax offset of up to $540.
* Note this is general tax advice only and you should seek professional financial advice specific to your circumstances regarding superannuation contributions
Trust Distribution planning and Minutes
Trust distribution minutes should be prepared and signed before 30 June. Distribution planning may be required if you are planning on distributing capital gains and/or franked dividends to different beneficiaries. Planning also needs to be made in the context of the recent ATO guidance on Trust distributions.
Prepare for Payday Super Changes
From 1 July 2026, employers will be required to pay superannuation at the same time as wages (rather than quarterly).
Now is the time to;
- Review payroll systems
- Assess cash flow impacts
- Ensure compliance processes are in place
See here for more detail.
Personal Services Income
In the past, allocating some business income to a spouse or retaining profits in your company generally hasn’t attracted ATO attention where the Personal Services Income rules were met. However, under ATO Practical Compliance Guideline PCG 2025/5, these arrangements now need to reflect what would be considered commercially reasonable based on the work actually performed. More here
ATO General Interest Charges not deductible
ATO General Interest Charges (GIC) are no longer tax deductible on or after 1 July 2025, so you may consider external third party finance (which is deductible if you are a business) to pay off ATO debts.
Division 7A loan agreements and minimum repayments
Where individuals and/or trusts have borrowed money from a private company in the year ended 30 June 2024, the loans must be fully repaid or be documented in a Division 7A-complying loan agreement before the due date of the company’s 2024 income tax return.
Sale of capital assets
Consider postponing the sale of assets with unrealised gains and bring-forward asset sales with unrealised losses.
QBCC Financial Requirements
Ensure your entity’s QBCC minimum financial requirements of Net Tangible Assets and Current Ratio are met by 30 June 2026.
Consider your business structure
As the Company tax rate is now 25%, many businesses are considering the move to a Company from their current structure. With current tax and duty rollover exemptions, you may consider this an opportunity to change or update to your business entity structure for FY27.
Planning for Upcoming Tax Changes
From 1 July 2026:
- The marginal tax rate reduces from 16% to 15% for lower income brackets
- $32,500 for concessional super contributions and $130,000 non concessional super contribution limits;
- PCG 2025/5 Personal services businesses and Part IVA -the ATO will focus on 30 June 2027 giving clients time to comply; More here ATO here
- New Guidance for rental property owners – focus on Holiday Houses –ATO here
Other key tax planning considerations;
- Bad debts must be written off in your accounts before 30 June
- Defer invoicing and the receipt of income
- Prepay expenses for up to 12 months –rent, insurance, interest, subscriptions. Small businesses (turnover less than $10m) can claim expenses prepaid up to 12 months in advance.
- Wages paid to family members must be reasonable for the work performed.
- Loans, payments and debts from Private Companies to their shareholders and associates will require minimum loan repayments to minimise deemed dividend income. Shareholders and entities should consider repaying loans and/or making minimum loan repayments on loans by 30 June 2026.
- Self-Managed Superannuation Funds in pension mode should ensure the minimum pension amounts have been paid to members in the year ended 30 June 2026.
- If your business is trading through a Discretionary Trust and 2026 has been a large income year, consider the use of a “Bucket Company” to establish if needed by 30 June 2026.
- Realise capital losses by 30 June to offset FY26 capital gains.
- Review your asset register to write off any obsolete or destroyed items.
- Staff Bonuses. For accrued staff bonuses to be deductible in the 2026 tax year the decision to pay the bonus and the determination of the bonus must be made and documented prior to 30 June 2026.
- Write Down Obsolete Stock: Conduct a stocktake and write down obsolete, damaged, or slow-moving stock to its net realisable value to reduce taxable income.
- Maintain Vehicle Logbooks: For work-related or business vehicle claims, ensure you have a valid 12-week logbook and record odometer readings at year-end.
- Property Depreciation Reports: If you own investment property, obtain a depreciation report to maximise deductions for depreciation and capital works.