5 Ultimate 2026 EOFY Tax Strategies for Small Business Owners
Last Updated: April 2026
The Australian financial year ends on June 30. For small to medium enterprise (SME) owners, if your Pty Ltd has had a booming year and is sitting on substantial net profits, you must act before the end of June. Otherwise, your company will face a hefty 25% Company Tax bill.
Here are the 5 ultimate "profit-reducing, cash-saving" strategies that business owners must execute before June 30:
1. Max Out Director & Employee Superannuation
The Deadly Super Clearing Deadline
This is the fastest way to slash company profits! As a director, you can pay additional concessional super contributions for yourself. However, this money MUST be cleared into the super fund's bank account by June 30 for the company to claim the deduction this year. Because most Clearing Houses take 3 to 5 business days to process payments, we strongly advise making these payments before June 20!
2. Utilize the Instant Asset Write-Off (IAWO)
The government has extended the $20,000 Instant Asset Write-Off for small businesses. If you need new business equipment (e.g., computers, office furniture, commercial machinery), as long as the cost of the individual asset is below $20,000, you can claim a full, immediate deduction in this year's tax return, rather than depreciating it slowly.
Note: To qualify, the asset must be purchased, installed, and ready for use by June 30. Merely placing an order does not qualify.
3. Pre-pay Next Year's Business Expenses
If you are an eligible small business (turnover under $50 million), one of the most direct ways to save tax is by pre-paying expenses. If you pay for the next financial year's business expenses before June 30 (for a period of no more than 12 months), you can claim the full tax deduction this year. Common pre-paid expenses include:
- Next year's Business Insurance or Public Liability premiums.
- Office or warehouse rent.
- Annual software subscriptions (e.g., Xero, MYOB, Microsoft 365).
4. Write Off Bad Debts & Obsolete Stock
If you have outstanding invoices that customers will likely never pay, do not leave them in your accounts receivable. You must officially "write off" these invoices in your accounting system before June 30. This not only lowers your taxable profit but can also help you recover the GST you previously paid to the ATO.
Similarly, do a stocktake. Identify any expired or damaged inventory and write it off before the end of June to reduce your closing stock value.
5. Deferring Income (Invoicing Later)
If your business accounts on an "Accruals Basis" and you have a transaction or service nearing completion in late June, consider negotiating with the client to finalize delivery and issue the invoice after July 1. This pushes the income into the next financial year, deferring the tax payable on that revenue by a full 12 months.
Company Profit Tax Reducer Estimator
Assuming your company has healthy profits. See how making compliant strategic moves before June (e.g., pre-paying rent, paying extra super) can legally reduce your 25% company tax bill.
Original Company Tax (25%)
New Tax After Deductions
Company Cash Tax Saved: $5,000
Important Note: Tax planning must have a genuine commercial purpose. If you also use a Family Trust, you must sign a formal "Trust Distribution Resolution" before June 30 to comply with strict ATO Section 100A reviews. Before making any large pre-payments, contact Loyal Bright Accountants before mid-June to ensure your cash flow remains healthy and compliant!
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