Tax planning is not something you do in June. By the time 30 June arrives, most of your decisions for the year are already made. The businesses that consistently pay the right amount of tax not a dollar more than required are the ones who think about tax strategy throughout the year, with a tax consultant they trust as part of the conversation. Here is how to approach it.
Why Year-Round Tax Planning Outperforms June Scrambling
The June scramble is familiar to most business owners: you meet with your accountant in the last week of the financial year, make a few rushed decisions maybe prepay an expense, maybe not and lodge your return a few months later without ever feeling in control of the outcome.
Year-round tax planning works differently. It means your accountant understands your projected revenue and expenses by March, so that by May, you are implementing strategies not just observing them. The difference in outcomes, for even a moderately complex business, can be measured in thousands of dollars.
The quarterly planning rhythm that works
- July–September: Review the prior year return. Set up systems for the new year. Confirm quarterly super obligations.
- October–December: BAS lodgement. Review year-to-date profit and tax position. Assess payroll for STP compliance.
- January–March: Mid-year check-in. Project full-year income. Identify deduction opportunities while there is still time to act.
- April–June: Pre-30 June planning session. Implement agreed strategies. Confirm asset purchases, prepayments, and super contributions.
The Pre-30 June Tax Planning Checklist for Melbourne Small Businesses
1. Maximise superannuation contributions
Employer super contributions are deductible when paid not when accrued. Ensure June quarter contributions are paid before 30 June to claim the deduction in the current year. For business owners who are also employees of their own company, consider additional concessional contributions up to the annual cap.
2. Review and time capital asset purchases
If your business needs equipment, vehicles, or technology, the timing of that purchase before or after 30 June affects which year the deduction falls in. Your tax consultant can model both scenarios.
3. Prepay eligible expenses
Small business entities can prepay expenses covering a period up to 12 months in advance and claim the full deduction in the current year. This includes insurance premiums, professional subscriptions, rent, and service agreements. Timing this correctly requires knowing your projected income for both years.
4. Write off bad debts
If you have debts you know are irrecoverable, write them off before 30 June. A debt must be genuinely written off in your accounts before the end of the financial year for the deduction to apply in that year. The paper work matters the decision to write it off must be documented.
5. Review your trust distribution resolution
For businesses operating through a discretionary trust, the trustee must make a valid distribution resolution before 30 June for the year’s income to be distributed tax-effectively. Missing this deadline means the ATO may tax the trust income at the highest marginal rate. This is one of the most time-sensitive compliance items for trust-based businesses.
Common Tax Planning Mistakes Melbourne Small Businesses Make
Treating tax planning as a once-a-year event
Decisions made in September (when to buy equipment, whether to employ or subcontract, how to invoice a large client) have direct tax consequences. Waiting until June to consider them leaves you reacting to decisions already made rather than optimising them as they happen.
Underestimating the role of business structure
Your business structure sole trader, partnership, company, or trust determines your tax rates, your access to concessions, your liability exposure, and your flexibility to manage income between entities. Many Melbourne businesses outgrow their original structure and are paying unnecessary tax as a result. A tax consultant near you can model the impact of restructuring and identify the right timing.
Missing small business CGT concessions
Qualification depends on your structure, asset use, and aggregated turnover. Planning this years ahead of an exit produces far better outcomes than discovering the concessions exist after the sale.
What to Look for in a Tax Consultant for Small Business
Finding a tax consultant near you who actively plans not just lodges requires asking the right questions:
- Do you meet with me outside of tax season to review my position?
- How do you stay current with changes to small business tax concessions?
- Can you describe a tax planning strategy you have implemented for a comparable business?
- What does proactive contact from your firm look like throughout the year?
A tax professional who can answer these confidently and specifically not generically is likely delivering year-round value, not just annual compliance.
Frequently Asked Questions
When should I start tax planning for my small business?
Now regardless of what month it is. Year-round planning means establishing the right systems, reviewing your position quarterly, and arriving at 30 June having already made the decisions that matter. If you have not had a tax planning conversation with your accountant in the last six months, that is the first thing to fix.
What tax concessions are available to small businesses in Australia?
Eligibility conditions apply to each. Your tax accountant should confirm which concessions you qualify for at the start of each year.
How do I reduce my small business tax bill legally?
Legal tax minimisation works through timing (bringing deductions forward, deferring income), structure (distributing income to lower-tax beneficiaries through appropriate structures), and concession access (applying all eligible offsets and write-offs). None of this requires anything aggressive it requires good planning and an accountant who does the work year-round, not just in tax season.
Is tax planning only for large businesses?
The opposite is often true. Large businesses have dedicated internal finance teams managing their tax position continuously. Small businesses which typically lack that internal resource stand to benefit most from a proactive external tax consultant who fills that gap. The return on investment for tax planning advice is often higher for smaller businesses than larger ones.
RPS Accountants provides year-round tax planning and consulting services to small businesses across Epping and Melbourne’s northern suburbs. If your current accountant only appears at lodgement time, there is a better way. Talk to us at rpsaccountants.com.au or call 1300 110 120 to discuss what proactive tax planning looks like for your business.
