Here are the steps business owners need to take as the end of the financial year nears:
- Superannuation maximisation: the 2025-26 concessional contribution cap is $30,000. Review your position to use carry-forward provisions if eligible.
- Prepay expenses: individuals and small businesses can prepay up to 12 months of expenses (for example, investment loan interest or subscriptions) before June 30.
- Small business asset write-off: utilise immediate deductions for assets under $20,000, ensuring they are purchased and in use by June 30.
- Income/expense timing: consider deferring income to the next financial year and bringing forward deductible expenses to manage your 2026 tax liability.
- Logbook maintenance: ensure your vehicle logbook is updated (valid for five years) to claim business-related travel or use the ATO’s 88 cents per kilometre rate for up to 5000km.
- Bad debts: review debtors and formally write off bad debts before June 30.
- Tax structure review: revisit business structures to optimise tax distribution before June 30.
- Private health insurance: high earners should review private hospital cover to avoid the Medicare Levy Surcharge.
- HELP/HECS debt: consider voluntary payments before June 1 to reduce the impact of indexation.
Katrina Brennan, Principal, SRJ Walker Wayland Business Growth Advisors, Accountants and Auditors, Level 2/2 Innovation Parkway, Birtinya, 5301 9957, srjww.com.au.
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