The 30 June Countdown Is On – Have You Reviewed Your Tax Position Yet?
As 30 June rapidly approaches, many small business owners are focused on finishing jobs, chasing invoices, and managing day-to-day operations. But overlooking end-of-financial-year (EOFY) tax planning could mean paying more tax than necessary.
The weeks leading up to 30 June are one of the few opportunities you have to legally reduce your tax bill before the financial year closes. Once the clock strikes midnight on 30 June, many tax-saving opportunities disappear until next year.
The good news? There are still several practical strategies that may help reduce your taxable income and improve your cash flow position.
Why EOFY Planning Matters
EOFY tax planning isn’t about finding loopholes or taking risks. It’s about reviewing your business finances before year-end and making informed decisions that take advantage of tax deductions and concessions available under Australian tax law.
A little planning before 30 June can potentially:
- Reduce your tax bill
- Improve cash flow
- Maximise deductions
- Avoid last-minute surprises
- Put your business in a stronger position for the new financial year
Here are some strategies worth discussing with your accountant before 30 June.
1. Make Additional Super Contributions
Superannuation remains one of the most tax-effective ways to build wealth while potentially reducing tax.
How it works
For 2025–26, the concessional (tax-deductible) contribution cap is $30,000 per person. This includes:
- Employer Superannuation Guarantee (SG) contributions
- Salary sacrifice contributions
- Personal deductible contributions
Depending on your circumstances, you may also have access to unused concessional contribution caps from previous years.
Why it saves tax
Concessional contributions are generally taxed at 15% within the super fund rather than at your personal marginal tax rate, which could be significantly higher.
Important EOFY rule
To claim a deduction this financial year, the contribution must be received by the super fund before 30 June.
Simply making a payment on 30 June is not enough if the fund doesn’t receive it until July.
Quick action step
Review your current super contributions now and consider making additional deductible contributions before mid-June to allow processing time.
Bonus tip for employers
Consider paying your June quarter super contributions before 30 June.
Normally, June quarter super isn’t due until 28 July. However, if paid and received by the fund before 30 June, the business may be able to claim the deduction this financial year instead of next year.
2. Prepay Business Expenses
Many small businesses can claim deductions upfront for certain expenses paid in advance.
Examples include:
- Rent
- Business insurance
- Professional subscriptions
- Software subscriptions
- Membership fees
- Interest on eligible business loans
Why it saves tax
By paying an expense before 30 June, you may be able to bring forward the tax deduction into the current year.
Quick action step
Review upcoming expenses due in the next 12 months and determine whether prepaying them before 30 June could be beneficial.
3. Bring Forward Business Purchases
If your business needs equipment or assets, EOFY can be an ideal time to act.
Examples include:
- Computers and laptops
- Tools and equipment
- Office furniture
- Machinery
- Work vehicles
Why it saves tax
Depending on the asset and current tax rules, you may be able to claim an immediate deduction or depreciation deduction.
The availability of the Instant Asset Write-Off changes regularly and eligibility depends on your business circumstances, so it’s important to obtain advice before making large purchases.
Quick action step
Review planned equipment purchases for the next six months and consider whether purchasing before 30 June makes sense.
Remember: don’t buy something solely for a tax deduction. It should still be a genuine business need.
4. Write Off Bad Debts
If customers owe you money and the debt is unlikely to be collected, it may be time to review your debtor list.
How it works
To claim a tax deduction, genuinely unrecoverable debts generally need to be written off in your accounts before 30 June.
Why it saves tax
Writing off bad debts reduces taxable income and ensures you’re not paying tax on income you’re unlikely to receive.
Quick action step
Review outstanding invoices and identify any debts that are unlikely to be collected. Ensure appropriate accounting entries are processed before year-end.
5. Review and Write Off Obsolete Stock
Many businesses carry inventory that is damaged, outdated, unsaleable or obsolete.
Examples include:
- Old product lines
- Damaged stock
- Expired items
- Slow-moving inventory
Why it saves tax
Writing down or writing off obsolete stock can reduce taxable profits and provide a more accurate picture of your business performance.
Quick action step
Conduct a stocktake before 30 June and identify items that may require a write-down or write-off.
6. Consider Deferring Income
Where commercially appropriate, some businesses may be able to defer income until after 30 June.
Examples include:
- Delaying invoicing for work completed near year-end
- Deferring discretionary income where appropriate
- Timing asset sales carefully
Why it saves tax
Deferring income can push taxable income into the following financial year, potentially reducing the current year’s tax liability.
Important note
Any strategy must reflect genuine commercial arrangements and comply with tax law requirements.
Quick action step
Review upcoming invoices and transactions with your accountant to determine whether timing opportunities exist.
7. Review Trust Distributions Before Year-End
If your business operates through a family trust, EOFY planning is particularly important.
Why it matters
Trust income generally needs to be distributed before year-end according to the trust deed and trustee resolutions.
The way trust income is distributed can significantly affect the overall tax outcome for a family group.
Why it saves tax
Strategic distribution planning may help direct income to beneficiaries on lower tax rates and improve overall tax efficiency.
Quick action step
Speak with your accountant well before 30 June to ensure trust resolutions are prepared correctly and on time.
Don’t Leave EOFY Planning Until the Last Minute
The most effective tax planning happens before 30 June—not when your tax return is being prepared months later.
Every business is different. The right strategy depends on factors such as:
- Business structure
- Profit levels
- Cash flow
- Existing deductions
- Superannuation position
- Future business plans
The earlier you review your position, the more options you generally have available.
Need EOFY Tax Planning Assistance?
If you’re unsure which strategies are appropriate for your business, now is the time to speak with your accountant.
A quick EOFY review before 30 June could potentially save thousands in tax and help set your business up for a stronger start to the new financial year.
Book your EOFY tax planning review before 30 June and make sure you’re not leaving valuable tax-saving opportunities on the table.
