Act Fast to Reduce Your Tax Bill!
Time is running out.
If you’re expecting a high income this financial year, there are several legitimate ways to reduce your tax bill — but most of them require action before 30 June. That means now is the time to start tax planning.
By putting the right strategies in place, you could save thousands of dollars — money that’s better in your bank account than with the ATO. Whether you want to reinvest in your business, boost your retirement savings, or enjoy a well-earned lifestyle upgrade, acting now gives you more options.
Nine key strategies worth considering.
- Write off bad debts
You’re taxed on income you’ve invoiced — even if it hasn’t been paid. Review your debtors list and write off any bad debts now to avoid paying tax on money you’ll never receive. - Reduce your stock value
The higher your closing stock, the higher your taxable profit. If you’re holding obsolete or slow-moving stock, now is the time to scrap or revalue it down. - Review business assets
Obsolete or unused assets can be written off to reduce your taxable income. There may also be accelerated depreciation options available. Let’s review which approach suits your business best. - Defer income
If your cash flow allows, deferring invoicing until July can push income into the next financial year — and defer the tax liability. However, we recommend discussing this with us to manage any impacts on your budget. - Review advance invoices
If you’ve issued invoices for services that won’t be delivered until the next financial year, you may not need to declare that income yet. Let’s check the details and apply the correct treatment. - Pay June quarter super early
Super is deductible when paid — not when it’s due. By bringing forward the June quarter super payment and making it in June, you can claim the deduction this year rather than next. - Maximise your super contributions
If growing your super is part of your plan, use your annual contribution cap before 30 June. We can help calculate how much you can still contribute. - Finalise staff bonuses
Employee bonuses are tax-deductible when committed to in writing, not just when paid. Finalise and document bonuses now to claim the deduction this year. - Plan for Capital Gains Tax (CGT)
CGT is all about timing. Have you held the asset for more than 12 months? Do you have losses you can realise to offset a gain? Are you eligible for any concessions? We’ll walk you through the options to minimise CGT where possible.
Let’s talk before 30 June.
Yes, that’s really soon!
Don’t leave it too late — small actions now can lead to significant savings later. If any of these apply to you, we need to sit down soon to tailor a strategy for your specific situation. Reach out to our team today.
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A new way to claim work-related expenses is coming for the 2027 tax return — but there is an important catch. From 1 July 2026, eligible taxpayers can claim a standard deduction of up to $1,000 for certain work-related expenses, without having to substantiate each expense individually. Sounds simple enough. But before you assume you can claim $1,000 on top of everything else, there are a few things you need to know. The $1,000 Is the Maximum The new standard deduction is capped at $1,000. It is designed to cover certain common work-related expenses, such as work-related phone and internet, home office expenses, stationery and some travel expenses. You can't claim the $1,000 and then claim those same expenses again separately. If you have actual work-related expenses of more than $1,000, you can continue to claim your actual expenses under the existing rules, provided you meet the requirements and have the records to support them. Do I Still Need to Keep My Receipts? Yes: and this is where it is worth being organised. If you use the standard deduction, you don't need to substantiate the individual expenses covered by it. But if you think your actual work-related expenses could be more than $1,000, keeping your receipts and records throughout the year will allow you to claim your actual expenses instead. There are also some deductions that aren't covered by the standard deduction and can still be claimed separately if you are eligible. It's for Your 2027 Tax Return The new deduction applies from the 2026–27 financial year, so you won't use it for the tax return you are preparing now. It will first apply to your 2027 tax return, lodged from July 2027. Is the $1,000 a $1,000 Tax Refund? No. The $1,000 is a deduction from your taxable income. It doesn't mean you'll receive an extra $1,000 back from the ATO. The value of the deduction will depend on your individual tax circumstances. What Should You Do Now? The best thing you can do is keep track of your work-related expenses throughout the 2026–27 financial year. When it comes time to prepare your 2027 tax return, we can look at your circumstances and determine whether the standard deduction or claiming your actual expenses is likely to give you the better outcome. At Ascent Accountants, we can help you make sense of the new rules and make sure you're claiming the deductions you're entitled to: without claiming the same expense twice!
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