Most businesses wait until May or June to think seriously about tax.
By then, options are limited. Decisions are rushed. Cash flow feels tighter than expected.
February, however, is different.
By this point in the financial year:
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Trading patterns are clearer
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Christmas fluctuations have settled
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January performance is visible
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There is still time to act
As experienced Penrith Accountants, we consistently see better outcomes when tax strategy is reviewed in February rather than reacted to in June.
Tax Planning Is Not a June Activity
The biggest misconception in small business is that tax planning happens at the end of the financial year.
In reality, effective tax planning happens months earlier.
By February, businesses should already be asking:
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What is our projected taxable income?
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Are current PAYG instalments accurate?
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Are there upcoming capital purchases?
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Is our structure still appropriate?
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Are super contributions aligned with strategy?
The earlier these questions are addressed, the more control you retain.
Visibility Creates Options
Tax strategy is only effective when visibility exists.
By February you can reasonably forecast:
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Year-end profit
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Cash flow trends
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Major expenses
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Staffing costs
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Asset investment plans
This allows for measured, commercially sensible decisions.
An experienced Accountant Penrith businesses rely on will review forward projections, not just past results.
February vs June: The Difference
When planning happens in February:
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Asset purchases can be staged
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Super contributions can be structured
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Cash reserves can be adjusted
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Instalments can be recalibrated
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Dividends or distributions can be planned
When planning happens in June:
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Decisions are compressed
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Cash flow feels tighter
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Options may no longer be available
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Risk increases
Time is the key variable.
Structure and Growth Review
Growth often creates tax exposure that business owners do not immediately see.
If revenue has increased this year, it may be time to assess:
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Sole trader vs company suitability
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Trust distribution flexibility
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Asset protection considerations
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Director risk exposure
Structure decisions are rarely urgent — but delaying them removes flexibility.
Proactive Penrith Accountants review these matters well before year-end.
Managing PAYG and Instalments
One of the most common February review items is PAYG instalments.
If profits are trending higher:
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Instalments may need adjusting upward
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Funds should be reserved progressively
If profits are lower:
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Instalments may be able to be reduced
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Cash flow pressure can be eased
Waiting until the final quarter often results in either overpayment or unexpected shortfalls.
Superannuation and Owner Strategy
Business owners frequently overlook personal tax planning until late in the year.
February is the ideal time to review:
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Concessional contribution caps
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Carry-forward contribution opportunities
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Director salary vs dividend planning
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Personal marginal tax rates
Strategic super contributions can reduce tax while strengthening long-term wealth.
This requires planning, not reaction.
Asset Purchases and Timing
The Instant Asset Write-Off remains one of the most discussed topics.
But asset timing decisions should consider:
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Cash position
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Financing structure
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Business need
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Long-term return
Tax deductions should support business strategy — not override it.
An experienced Accountant Penrith clients trust will evaluate both the tax impact and the commercial logic.
Risk Reduction Through Early Review
Beyond tax minimisation, early strategy reduces:
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ATO compliance risk
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Audit exposure
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Cash flow shocks
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Stress in the final quarter
Calm planning is almost always cheaper than reactive correction.
Why Local Advice Matters
Tax law is national. Business conditions are local.
Working with Penrith Accountants who understand the local business landscape means advice is grounded in real operating conditions, not generic templates.
Local advisory relationships allow:
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Ongoing conversation
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Strategic forecasting
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Commercial context
This leads to better long-term outcomes.
The February Question
As we move deeper into 2026, business owners should ask:
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Am I confident in my projected tax position?
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Have I reviewed my structure recently?
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Do I understand my cash reserves?
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Am I planning ahead — or waiting?
If the answer is uncertain, February is the time to review.
Final Thoughts
Tax strategy should support growth, stability and confidence.
The most successful businesses treat tax planning as an ongoing conversation, not a once-a-year obligation.
As trusted Penrith Accountants, we work with businesses who prefer clarity over urgency and strategy over reaction.
February offers something June does not — time.
And time creates options.