Small Business Tax Planning: Top 10 Strategies for June 2026

Effective tax planning is about more than just filing on time; it’s about making strategic moves before the end of the financial year to optimise your position and improve cash flow.

Here are ten essential tax planning tips for small business owners:

If your business needs new equipment, technology, or vehicles, purchasing and installing them before 30 June may allow you to claim an immediate deduction. Ensure the asset is "ready for use" by the deadline to qualify for the current financial year.

Review your accounts receivable for any invoices that are unlikely to be paid. By formally writing off these bad debts in your bookkeeping system before year-end, you can claim a deduction for the lost income and potentially recoup the GST previously paid on those invoices.

Small businesses can often claim a deduction for expenses paid in advance. Consider prepaying up to 12 months of costs such as insurance premiums, professional subscriptions, rent, or business memberships to reduce your taxable income for the current year.

Employee superannuation is only deductible in the year it is actually received by the super fund. To ensure a deduction for this financial year, clear your June quarter contributions well before the 30 June deadline to account for bank and clearinghouse processing times.

For the 2025–26 financial year, the concessional contributions cap has increased to $30,000. If you have a high-profit year, contributing more to your super not only builds your future but reduces your personal taxable income today. Remember, the fund must receive the payment by June 30.

Also, if your total super balance is under $500,000, you may be able to access unused concessional cap amounts from the previous five years. This is a powerful catch-up strategy for business owners who may have put their super on the back-burner during leaner start-up years.

Obsolete or damaged stock is a drain on your bottom line.

This means that if you keep inventory, performing a physical stocktake at year-end is vital. Identifying obsolete, slow-moving, or damaged stock allows you to write down its value, which reduces your closing stock figure and, consequently, your taxable profit

As your business grows, the structure you started with (e.g., Sole Trader) may no longer be the most tax-efficient. Consult with a professional to see if moving to a Company or Trust structure could provide better asset protection and tax planning opportunities.

If you operate your business from home, ensure you are capturing all eligible costs. You may be able to claim a portion of running expenses, such as electricity, gas, internet, and phone usage, using either the fixed-rate method or the actual cost method.

If all that bookkeeping sounds hard there is the fixed-rate method for working. This is where you can claim 70 cents for every hour you work from home instead. To keep things smooth with the tax office, just ensure you have a simple record, like a calendar or timesheet, showing your actual hours worked.

If you use a vehicle for business purposes, and rack up a lot of costs like fuel and repairs, a valid logbook kept for a continuous 12-week period is essential to justify your business-use percentage. Without it, your claims may be limited, potentially resulting in a higher tax bill.

The ATO requires you to keep records for five years. Utilising cloud accounting software to digitise receipts not only ensures you meet compliance standards but also prevents lost deductions that occur when paper receipts fade or go missing.

As of 1 July 1 2026, the ATO is moving to Payday Super, meaning you’ll have to pay employee superannuation at the same time you pay their wages. The old quarterly buffer is disappearing.

Start transitioning your cash flow modeling now. If you’re used to holding onto that 12% super for three months, start looking at paying these amounts every payday and how it will affect your cashflow. This will help you avoid a shock when the laws come into effect.