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. 

1. 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. 
2.  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. 
3. 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. 
4. 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. 
5. 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. 
6. 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. 
7. 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. 
8. 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. 
9. 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.