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MJE Business Services

Tax Planning Before 30 June: Legitimate Ways to Reduce Your Bill

Last reviewed: 2026-06-15Tax Planning

Tax Planning Before 30 June: Legitimate Ways to Reduce Your Bill

Short answer: the most reliable legitimate ways to lower your tax before 30 June are making extra concessional super contributions (within the $30,000 cap for 2025-26), prepaying deductible expenses, using the $20,000 instant asset write-off, writing off genuine bad debts, and sensibly timing income and expenses. All of these work because they are real - the moment a "strategy" becomes artificial, the ATO can unwind it.

The weeks before 30 June are the last chance to shape your tax position for the year. Done properly, a bit of planning can genuinely lower your bill - legally and sensibly. The key word is legitimate. There is a clear line between tax planning (arranging your affairs within the rules) and tax avoidance (artificial schemes the ATO will unwind). Everything below sits firmly on the right side of that line, and it is the work we do each autumn for business owners and investors around Mortdale and the St George area - but check it against your own situation before you act.

1. Make extra super contributions

Putting money into super before 30 June can be one of the most effective moves, because concessional (before-tax) contributions are generally taxed at 15% in the fund rather than at your marginal rate.

For the 2025-26 income year, the concessional contributions cap is $30,000. This cap includes the super your employer pays, any salary-sacrificed amounts, and personal contributions you claim as a deduction - so do not just look at what you have added yourself. If you have unused cap from earlier years and your total super balance is under $500,000, you may be able to carry forward and contribute more, but the rules are specific.

Two things to get right: the contribution must be received by your fund before 30 June (not just sent on the last day), and if you are claiming a personal contribution as a deduction you must lodge a valid notice of intent with your fund and get its acknowledgement. Payments routed through a clearing house can take several business days to land, so the last week of June is cutting it fine - aim to pay well ahead of the deadline.

2. Prepay deductible expenses

If you have business or investment expenses coming up - rent, insurance, subscriptions, professional memberships or interest - bringing some forward can pull the deduction into this year.

For small businesses and individuals, you can generally prepay expenses covering a period of up to 12 months and claim them this year. The rules differ for larger businesses, so check what applies. Only spend money you were going to spend anyway - a deduction is a percentage of the cost, never the whole cost, so spending purely to "save tax" leaves you worse off.

3. The instant asset write-off

If you have been thinking about buying equipment, the instant asset write-off lets eligible small businesses immediately deduct the business portion of an asset rather than depreciating it over years.

For the 2025-26 income year, small businesses with aggregated turnover under $10 million can immediately deduct eligible assets costing less than $20,000, where the asset is first used or installed ready for use between 1 July 2025 and 30 June 2026. The $20,000 limit applies per asset, so you can write off several. This 12-month extension is now law - it was enacted by the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025.

A note of caution: these thresholds and dates are set year by year and have changed often. The $20,000 limit currently runs only to 30 June 2026, and any extension beyond that is a separate decision, so confirm the current rules before relying on them. As with prepaying, only buy what the business genuinely needs, and make sure the asset is installed ready for use by 30 June, not merely ordered or paid for.

4. Write off genuine bad debts

If a customer owes you money you have given up on recovering, you may be able to claim a bad debt deduction - but only if the amount was previously included in your assessable income, the debt is genuinely bad (not just slow), and you formally write it off in your accounts before 30 June. A documented decision is what makes this stand up, so do not leave it as a vague intention.

5. Time your income and expenses

A little timing can help, within reason:

  • Defer income where it is legitimate - issuing an invoice in early July rather than late June can push that income into next year (this suits cash-basis taxpayers in particular).
  • Bring forward deductible expenses into June where it makes commercial sense.
  • Review your investments - if you are considering selling an asset, the timing of any capital gain or loss can matter, and capital gains tax has its own rules.
  • Accrue genuine staff or director bonuses you are committed to paying - if the business is definitely committed and it is properly documented before 30 June, the expense can fall in this year even if paid shortly after. The commitment must be real and recorded, not a paper entry.
  • Review your stock on hand - if trading stock cannot realistically be sold for what it cost, you may be able to value it lower at year end, which reduces profit. The write-down must reflect genuine value, not wishful thinking.

Timing only works if it suits your real cash flow. Distorting your accounts purely to shift tax can backfire.

Planning, not avoidance

Everything here works because it is genuine - real contributions, real purchases, real commercial decisions, timed sensibly. What does not work is artificial arrangements with no real purpose other than a tax benefit; the ATO has strong anti-avoidance rules and will unwind those. If a "strategy" sounds too clever, it usually is.

The other golden rule: never let the tax tail wag the dog. A deduction returns only a fraction of what you spend. Spending or contributing money you do not have, just to save tax, leaves you worse off overall.

If you run a small business, work through our EOFY checklist for small business alongside this. And if you operate through a discretionary trust, the trust distribution resolution is another job that must be done by 30 June.

FAQ

When do super contributions need to be made to count this year? The contribution must be received by your super fund before 30 June - not merely paid on 30 June. Allow several business days for processing, especially through clearing houses, so aim well before the deadline.

Is buying equipment before 30 June always worth it for the write-off? Only if you genuinely need the asset. The write-off gives you a deduction (a percentage of the cost back), not a refund of the full price. Buying something you do not need to "save tax" costs you more than it saves.

How early should I start planning? Earlier is better - ideally April or May. Some strategies (super notices, prepayments, asset purchases) need time to set up properly before 30 June, and a rushed last-week decision is where mistakes happen.

Let's plan before the deadline

The best tax planning is done with time to spare and with your real numbers in front of us. If you would like to review your position before 30 June - wherever you are around Mortdale or the St George area - our tax planning service is built for exactly that. Get in touch or call us on (02) 9580 1167 and we will map out the legitimate options that fit your situation.

Written by the team at MJE Business Services, a registered tax agent (No. 26313222) serving the St George area since 2000.

This is general information, not personal advice. Tax rules and dates change - please check your situation with us or at ato.gov.au.

Sources (ATO)

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