As we move further into the financial year, one of the most common questions we hear is:
“What can I still claim before 30 June?”
The answer is rarely simple. Effective tax planning is not about rushing into purchases in June. It is about reviewing your position early and making informed decisions.
For many local businesses, February is the ideal time to step back, assess performance, and plan ahead. As experienced Penrith Accountants, we work with clients well before the end of financial year to ensure there are no surprises and no missed opportunities.
Below is a practical checklist to help guide that discussion.
1. Equipment and Asset Purchases
If your business requires tools, machinery, vehicles or technology upgrades, timing matters.
Under current tax rules, eligible businesses may be able to immediately deduct certain asset purchases rather than depreciating them over multiple years. However, purchasing equipment solely for a deduction rarely makes commercial sense.
Before committing to any purchase, consider:
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Is the asset genuinely required for business operations?
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Will it improve productivity or revenue?
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Can cash flow comfortably support the purchase?
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Are you eligible for the relevant deduction thresholds?
An experienced Accountant Penrith businesses trust will assess both the tax benefit and the commercial reality before advising.
2. Prepaying Expenses
Some expenses can be prepaid before 30 June and claimed in the current financial year, depending on your business structure and turnover.
Common examples include:
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Rent
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Insurance
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Subscriptions
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Professional services
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Loan interest
Prepaying can reduce taxable income for the current year while locking in known expenses. However, it must be managed carefully to avoid cash flow strain.
3. Superannuation Contributions
Superannuation is often overlooked until the last minute.
For business owners and directors, additional super contributions may be deductible, subject to contribution caps.
Important considerations include:
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Contribution caps
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Timing of payment (it must be received by the fund before 30 June)
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Impact on personal tax position
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Interaction with Division 293 tax (for higher income earners)
Super planning is most effective when reviewed well before June. Waiting until the final week of the financial year introduces unnecessary risk.
4. Reviewing Debtors and Bad Debts
Outstanding invoices should be reviewed before year-end.
If a debt is genuinely unrecoverable and written off before 30 June, it may be deductible. However, the write-off must be properly documented.
This is also an opportunity to assess:
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Debtor management processes
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Cash flow exposure
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Credit policies
Proactive Penrith Accountants will often identify areas where stronger debtor management can improve overall business performance.
5. Stock Write-Downs
If your business holds trading stock, its value at 30 June directly affects taxable income.
Obsolete, damaged or unsaleable stock may be eligible for a write-down. However, valuation must reflect reasonable market value and be appropriately recorded.
A year-end stock review can reduce taxable income where justified, while also improving inventory management practices.
6. Trust Distributions and Structure Planning
For businesses operating through trusts or companies, February is the right time to review:
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Expected profit levels
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Beneficiary income positions
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Tax bracket considerations
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Distribution strategy
Waiting until June to make distribution decisions often limits flexibility.
Proper structure planning can significantly influence overall tax outcomes, particularly where family groups are involved.
7. Reviewing PAYG Instalments
If your business income has changed during the year, PAYG instalments may no longer reflect your expected tax position.
Overpaying affects cash flow. Underpaying can lead to unexpected liabilities and interest charges.
Reviewing instalments now allows adjustments before the final quarter.
8. Business Structure Check
As businesses grow, their structure may no longer be suitable.
Common triggers for review include:
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Increased revenue
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Taking on staff
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Asset purchases
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Expansion into new markets
An experienced Accountant Penrith business owners rely on will assess whether your structure continues to support both asset protection and tax efficiency.
9. Record Keeping and Compliance
Strong deductions rely on strong documentation.
Before 30 June, it is worth reviewing:
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Expense categorisation
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Receipt retention
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Payroll compliance
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Superannuation obligations
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GST reporting accuracy
Clean records reduce risk and improve audit readiness.
Why February Is the Smart Time to Plan
The worst approach to tax planning is reacting in late June.
By February:
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There is enough data to forecast year-end profit
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There is still time to implement strategy
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Cash flow can be planned
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Decisions can be made calmly
This is why proactive Penrith Accountants encourage early planning conversations.
What You Should Be Asking Right Now
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What will my estimated taxable income be this year?
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Am I carrying unnecessary tax risk?
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Are there legitimate deductions I haven’t considered?
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Is my structure still appropriate?
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Should I be adjusting super or instalments?
If these questions remain unanswered, now is the time to act.
Final Thoughts
Tax planning is not about finding loopholes. It is about understanding your position and making commercially sound decisions.
For local businesses, working with a proactive Accountant Penrith firms trust ensures:
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No rushed decisions in June
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No unexpected tax bills
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No missed opportunities
The most successful businesses treat tax planning as part of overall financial management, not a once-a-year exercise.