February. Summer’s winding down. And if you’re like most business owners, you’re thinking about the months ahead, not tax planning.
But June 30 doesn’t pause because you’re tired. The ATO doesn’t care that your margins are tight. And the operators who get ahead make smart moves now, while there’s still time.
So let’s talk about something uncomfortable. If you’re getting last-minute tax bills and scrambling for cash every year, you need to ask yourself: Is it your accountant, or is it you?
The Accountant Problem
Twenty years ago, Collins SBA looked very different. Like most accounting firms, we took 13 months to get through our tax return stream. We were doing returns in July for work that was effectively two years old. Our clients got bills with no warning and no time to prepare.When they implemented a 10-day turnaround system, everything changed. They ran out of tax work by February and started doing something radical: tax planning. Helping clients understand what was coming 10 months before the bill arrived.
Andrew fixed his system 20 years ago. But many accountants still operate like that. If your accountant is still catching up on last year’s returns in February, they don’t have capacity to plan ahead for June 30.
The signs are clear: you get your tax return late, there’s no conversation about strategy, and every year the bill comes as a surprise. That’s the accountant problem.
The Client Problem
Look, we get it. You’re running a business. Between cash flow pressures, staff management, and just keeping operations running, tax planning falls to the bottom of the list. You’re not avoiding it, you’re just busy.
But it costs you. When you finally sit down in May or June, most of the opportunities are gone. The best tax planning happens now, not when the deadline is breathing down your neck.
The right accountant doesn’t wait for you to remember tax planning. They reach out, keep you on track, and make sure opportunities don’t slip past. But when they call, you still have to pick up.
The Tax Planning Test
Has your accountant already asked you about tax planning this year? If they have, you’re in good hands. If they haven’t, send them an email this week asking about it. If they respond and make time to talk strategy, they’re at least responsive. If not, you’ve got your answer.
What You Should Be Focusing On Before June 30
Whether you’re working with another accountant or us, here’s what business owners need to be thinking about right now:
1. Review Your Depreciation Schedule
Depreciation is powerful for managing taxes, but you need to keep your schedules up to date. This includes all your business assets – equipment, vehicles, computers, furniture, machinery – anything that should last more than a year.
Have you reviewed your depreciation schedule recently? If you have obsolete or underperforming assets, consider writing them off completely. That old machinery you replaced? The computers sitting in storage? Writing them off can offer immediate tax benefits.
It’s not just about the deduction. It’s about having accurate records that reflect what you actually own and use.
2. Write Down Obsolete Inventory or Assets
As you move through the financial year, you’ve probably accumulated inventory or assets that are damaged, obsolete, or otherwise worthless. For hospitality businesses, this might be expired stock or broken equipment. For retailers, it’s damaged goods. For manufacturers, it’s obsolete materials.
When valuing your inventory, remember it should be valued at the lower of cost or market value. If the current market value is less than what you paid, or if it’s worthless, write it down. This adjustment reduces your taxable income and better reflects the true value of your business.
Keep records – photos and disposal notes are helpful if the ATO ever asks.
3. Take Advantage of the $20,000 Instant Asset Write-Off
The government extended the $20,000 instant asset write-off until June 30, 2025. For businesses with turnover under $10 million, any individual asset under $20,000 can be written off immediately – if it’s installed and ready to use by June 30.
New equipment? Vehicles? Technology upgrades? If you need the asset anyway, buying it now brings the tax benefit forward.
But here’s the important part: don’t buy something just because you’ll get a tax deduction. If you spend $20,000 on equipment, you might save $6,000 in tax – but you’re still $14,000 out of pocket. Only make the purchase if you actually need the asset. The tax benefit is a bonus, not the reason.
4. Contribute to Your Super
From a tax perspective, topping up your voluntary super contributions can be a smart move. From July 1, 2024, you can contribute up to $30,000 in deductible super contributions each year. These contributions reduce your taxable income, which lowers your overall tax bill.
Contributing to super not only benefits your tax position today but also gets funds into a good tax environment for the future. It’s a win-win. Just make sure you talk with your financial adviser to ensure it’s right for your situation.
A reminder on super: the current SG rate is 12%. More importantly, payday super starts July 1, 2026 – just four months away. If your business has been treating quarterly super as a cash flow buffer, that’s about to change.
5. Review Your Business Structure
This is the big one most people ignore. Many businesses are still operating as sole traders or in structures that made sense five years ago but no longer do.
Consider whether your current structure – sole trader, partnership, trust, or company – is still the best fit for you and your family. The wrong structure can lead to higher tax liabilities and missed opportunities for tax planning. The right structure can offer tax benefits and protect your personal assets.
We see this all the time. A business that started as a sole trader five years ago is now turning over $500,000. The owner is paying top marginal tax rates when a different structure could legally reduce their liability by thousands.
If you have a family trust, your distribution minutes need to be executed before June 30, not backdated later when you’re doing your tax return. This is a common oversight that can cost you flexibility in how you distribute income.
6. Prepay Strategic Expenses
If your business turns over under $50 million, you can prepay up to 12 months of certain expenses and claim the deduction now. This could include rent, business insurance, software subscriptions, or service contracts.
This is especially valuable if your 2024-25 income has been strong and you want to bring your taxable income down. You’re spending the money anyway – this is about timing it smartly.
7. Understand Your Numbers
This sounds basic, but most business owners don’t know what tax they’ll owe until it’s too late.
Your accountant should be able to forecast your tax position now. Not in June. Not when they’re doing your return. Now.
If you don’t know roughly what tax you’ll owe for this financial year, that’s a problem. It means you can’t plan cash flow properly, and you can’t make strategic decisions about the moves above.
The Reality Check
The businesses that thrive aren’t necessarily the ones with the highest revenue. They’re the ones who understand their numbers, plan ahead, and face problems early.
You’ve got four months until June 30. That’s enough time to make smart moves. Enough time to understand what’s coming. Enough time to set yourself up properly instead of scrambling at the last minute.
But only if you start now.
What Happens If You Wait
If you wait until May or June, here’s what you lose:
- The ability to make strategic asset purchases
- Time to execute trust distributions properly
- Opportunities to prepay expenses
- The chance to adjust your super contributions
- Any hope of reviewing and changing your structure
You also end up in the same position you were in last year. Rushed. Stressed. Getting a bill you weren’t expecting with no cash set aside to pay it.
Your Move
Contact Bruno at bpalermo@collinssba.com.au or call 1300 264 722. We’ll look at where you stand, identify what you can still do before June 30, and help you figure out if your current tax planning is working – or if something needs to change.
The ATO is knocking. Winter is coming. But you’re not powerless.
For confidence’s sake.
