Smart End-of-Year Tax Moves for Your Business

As the end of the financial year approaches, the familiar scramble to get receipts in order begins. But wrapping up the tax year shouldn’t just be about looking backward, it’s the perfect time to look forward and take simple, proactive steps to keep more cash in your business.

Whether you’re running things as a sole trader or operating through a company, the goal is often the same: legally reducing your taxable income so you aren’t paying more than your fair share.

Here is a straightforward guide to the most effective cash-flow and tax-saving moves you can make right now.

Tax is a game of timing. If you can legally shift the financial year in which an item falls, you can change how much tax you owe right now.

Bring Forward Your Expenses:

If you know you need to buy office supplies, pay for trade subscriptions, or handle building maintenance in July or August, consider paying for them before 30 June. By pre-paying these everyday expenses (for services lasting 12 months or less), you pull the tax deduction into the current financial year.

Pause Your Invoicing:

If you have client work coming up near the end of June, consider holding off on sending the invoice until 01 July. As long as the work hasn't actually been completed yet, delaying the invoice delays the income. This pushes the profit, and the tax on it, into the next financial year, giving your business cash flow a breather today.

If your business has a turnover of less than $10 million, you can take advantage of one of the best small business concessions available.

You can immediately deduct the full cost of eligible business assets that cost less than $20,000 each. Instead of tracking the item’s depreciation over several years, you get the entire tax write-off upfront.

The Golden Rule:

Simply buying the asset before 30 June isn't enough. To get the deduction this year, the item must be delivered, unpacked, and first used or installed ready for use in your business by 30 June. If you order a $15,000 piece of equipment on 28 June but it arrives in July, the deduction slips into next year.

Superannuation is one of the most powerful tools for building wealth, but it can also be a clever tax strategy.

Personal Super Contributions:

Putting extra cash into your super can reduce your personal taxable income. While this technically builds your retirement nest egg rather than directly cutting business tax, the personal tax deduction is a massive win for your overall financial position.

The Spouse Contribution Offset:

If your spouse earns a lower income, you might be able to claim a tax offset of up to $540 by making a contribution directly into their super fund. It’s a great way to look after your household’s future while trimming your current tax bill.

Watch the Clock:

For any super contribution to count for this financial year, the money must actually be received by the super fund before 30 June. Don't leave the bank transfer until 29 June, as processing delays could cost you the deduction.

If you live in a regional or remote part of the country, make sure your tax agent is 100% aware of your living situation.

You may be eligible for a specialised Zone Offset. This is a tax concession designed to ease the financial burden of living in isolated areas. It is an easy one to overlook if you don't mention your exact location to your accountant, so speak up and ensure you aren't leaving money on the table.

If your business sells physical products, don't wait until July to do your stocktake.

Take a look at your inventory before 30 June and identify anything that is damaged, obsolete, or unsellable. By officially writing down the value of this stock before the end of the financial year, you can claim a deduction for the loss. It’s a great excuse to clear out the shelves and lower your taxable income at the same time.

If you use accrual accounting (meaning you report income when you invoice, not when the cash hits your bank), you might be sitting on bad debts.

If there is a client who owes you money from months ago and you’ve realistically given up hope of ever getting paid, don't pay tax on that ghost money. Officially write it off as a bad debt in your system before 30 June. This ensures that uncollectible invoice doesn't count toward your taxable profit this year.

The best tax strategy is simply one that looks at your whole picture.

Before making any massive end-of-year purchases solely for the tax write-off, just make sure the expense actually makes sense for your business cash flow, spending a dollar to save 30 cents only works if you actually needed the what your buying.

Gather your records early, take a breath, and use these final weeks of June to set your business up for a smooth, profitable run into the new financial year.