As the end of the financial year approaches, most business owners fall into one of two categories.
They either scramble in June trying to get everything sorted…
or they plan ahead and save thousands.
EOFY tax planning isn’t about doing something complicated. It’s about knowing what to do early enough so you can make smart decisions before 30 June.
If you run a small business in Penrith or Western Sydney, this guide will walk you through exactly what you should be doing right now to reduce your tax, stay compliant and avoid unnecessary stress.
Why EOFY Tax Planning Matters More Than Ever in 2026
The 2026 financial year is different.
You’re dealing with:
- the $20,000 instant asset write-off deadline
- changes to ATO interest deductibility
- upcoming Payday Super reforms
- increased ATO data matching and compliance activity
That means poor planning is more expensive than ever.
On the flip side, good planning can significantly reduce your tax bill.
The Biggest EOFY Mistake Business Owners Make
The biggest mistake is waiting until June.
By then:
- it’s too late to buy assets
- too late to restructure income
- too late to fix cash flow
- too late to adjust super contributions
Good tax planning happens in April and May — not the last week of June.
Step-by-Step EOFY 2026 Tax Checklist
Here’s what you should be doing right now.
1. Review Your Profit Position
Start with a simple question:
Are you going to make a profit this year?
If yes:
- plan to reduce taxable income
If no:
- plan to carry losses forward strategically
Your accountant should already be helping you forecast this.
2. Bring Forward Expenses Where It Makes Sense
If you’re going to have a strong profit year, consider bringing forward expenses into this financial year.
This could include:
- software subscriptions
- insurance renewals
- marketing spend
- equipment purchases
This reduces your taxable income immediately.
3. Use the $20,000 Instant Asset Write-Off
This is one of the biggest opportunities available right now.
If your business needs:
- tools
- equipment
- computers
- office upgrades
and each item costs under $20,000 — you can claim it immediately.
But remember:
The asset must be installed and ready to use before 30 June.
4. Check Your Superannuation Contributions
Super is only tax-deductible if it’s paid on time.
Make sure:
- employee super is up to date
- your own super contributions are planned
- payments are made before deadlines
This is especially important with Payday Super coming in 2026.
5. Write Off Bad Debts
If a customer isn’t going to pay you, don’t carry it into the next year.
Writing off bad debts before 30 June:
- reduces taxable income
- cleans up your books
- gives a more accurate financial position
6. Review Your Stock and Inventory
If you hold stock:
- write down obsolete or damaged stock
- adjust inventory values
This can reduce your taxable profit.
7. Prepay Expenses (Where Allowed)
Small businesses can prepay some expenses up to 12 months in advance.
Examples:
- rent
- insurance
- subscriptions
This can bring forward deductions.
8. Check Director Loans (Division 7A)
If you’ve taken money out of your company:
- make sure it’s structured correctly
- avoid unexpected tax penalties
This is one of the most commonly missed issues.
9. Review Your Business Structure
EOFY is a good time to ask:
- is your structure still right?
- are you paying too much tax?
- should income be split differently?
This is where good advice makes a big difference.
10. Get Professional Advice Before It’s Too Late
Most tax savings don’t come from forms — they come from decisions made before 30 June.
What Happens If You Don’t Plan?
If you ignore EOFY planning:
- you’ll likely pay more tax than necessary
- you may miss deductions
- you increase audit risk
- cash flow becomes unpredictable
How Carmody Accounting Helps You Get This Right
At Carmody Accounting, we focus on practical, simple tax strategies that actually make a difference.
We help businesses:
- forecast tax positions early
- identify deductions
- plan purchases
- manage super
- stay compliant with ATO rules
- reduce tax legally
Most importantly, we make the process simple and stress-free.
FAQ
When should I start EOFY tax planning?
Ideally in April or May. Waiting until June limits your options.
What is the instant asset write-off for 2026?
Businesses can claim assets under $20,000 if installed before 30 June 2026.
Can I reduce my tax legally before EOFY?
Yes. Through timing of expenses, super contributions and asset purchases.