As the end of the financial year approaches, it’s a great time to review your financial position. Below are some key tax planning strategies and considerations to help you and your business make the most of available opportunities before 30 June.
$20,000 Instant Asset Write-Off
Small businesses with an annual turnover of less than $10 million can continue to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 (GST exclusive). To qualify:
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The asset must be first used or installed and ready for use by 30 June 2026.
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Both new and second-hand assets are eligible (e.g., tools, machinery, office equipment, vehicles).
Paying your Employee’s Superannuation before 30 June
Pay your employees’ June quarter super by 30 June to ensure you can claim the tax deduction in this financial year.
Write Off Bad Debts
Review your outstanding debtors and write off any amounts you believe are uncollectable before 30 June. This ensures you don’t pay tax on income you won’t receive.
Defer Invoicing
If your cash flow allows, consider deferring some invoicing until July to reduce income in the current year.
Making Extra Contributions to Super
Contributing to your super before year-end can reduce your tax and grow your retirement savings. Consider the following types of contributions:
Concessional Contributions (Pre-Tax)
The concessional cap for 2025–26 is $30,000. Contributions made towards this cap include:
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Employer Super Guarantee (SG) contributions
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Salary sacrifice contributions
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Personal contributions claimed as a tax deduction
If you have any unused cap, you can make a personal contribution and claim a deduction in your tax return.
Carry-Forward Concessional Contributions
If your total super balance was under $500,000 on 30 June 2025, you may be eligible to use unused concessional caps from the past five years. This is especially helpful if:
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Your income is higher this year
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You sold an asset and want to offset capital gains
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You’re self-employed or had irregular income in recent years
Non-Concessional Contributions (After-Tax)
The cap is $120,000 per year. If under age 75 and with a total super balance below $2 million, you may bring forward up to three years’ worth — contributing up to $360,000 at once.
Government Co-Contribution
If you earn under $62,488 and make a non-concessional contribution of up to $1,000, the government may contribute up to $500 to your super.
Spouse Contributions
You may receive a tax offset of up to $540 if you contribute to your spouse’s super and they earn less than $40,000.
Downsizer Contributions
If aged 55 or over, you may be able to contribute up to $300,000 (per person) from the proceeds of selling your home. This does not count towards your other contribution caps.
IMPORTANT: Ensure contributions are received by your super fund before 30 June. Delays (from you or your fund) can cause missed deductions
Pay Your Creditors
If your business reports on a cash basis, consider paying as many creditors as financially possible before 30 June. This ensures you can claim the deduction in the 2026 financial year.
Minimum Pension Drawdowns for SMSFs
If you’re a member of a self-managed super fund (SMSF) receiving an account-based pension that started on or after 20 September 2007, a minimum annual payment must be made by 30 June.
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The amount is based on your 1 July 2025 pension balance and age-based percentage.
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If the pension commenced during 2025–26, the minimum is calculated on a pro-rata basis.
Failure to make the minimum payment may result in adverse tax consequences for the member.
Payday Super Starts 1 July
A reminder that Payday Super commences from 1 July 2026. Employers will be required to pay employees’ superannuation the same day that their salary and wages are being paid, If you haven’t already, please ensure your software and internal procedures are ready for the change. Reach out to us and our bookkeeping team can assist.
Federal Budget 2026-2027
The recent Federal Budget has proposed a number of changes that may impact individuals, investors and businesses, including tax cuts, small business incentives and significant reforms to investment and trust taxation. As these measures are not yet law and must pass through Parliament, we will work closely with you once finalised to assess the impact and implement appropriate strategies.
Contact Us
yIf ou have any questions about these strategies please do not hesitate to reach out to us on enquiries@chcpas.com.au or (03) 9431 1420. We appreciate your trust in our services and look forward to continuing to support you.
