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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Buying and selling property rarely lines up perfectly. The logistics of it all can be incredibly stressful. If you’ve found the perfect next home but haven’t sold your current one yet, a bridging loan can make your move easier, without having to wait on your current property sale. What is a bridging loan? A bridging loan is a short-term loan that gives you the funds to buy a new property before your current property has sold. It’s designed to bridge the gap between buying and selling. These loans are generally interest-only and are typically offered for up to 12 months, giving you time to sell and settle on your current home while already owning the next one. When would I need a bridging loan? You might consider bridging finance if: You’ve found your next home but haven’t yet sold your current one. You want to avoid renting or moving twice between sales. You want more time to prepare your home for market to get the best sale price. You're building a new home while still living in your existing one. How does it work? Peak Debt: The lender combines your current mortgage, the cost of the new property (including stamp duty and legal fees), and any interest (if it’s being capitalised). This total is known as your Peak Debt. Interest Only: During the bridging period, you’ll typically pay interest only — or the interest may be capitalised (meaning it’s added to your loan rather than paid upfront). Sell Your Property: Once you sell your existing home, the sale proceeds are used to reduce your Peak Debt. End Debt: The remaining balance becomes your End Debt, which then continues as a standard mortgage. An example of a bridging loan. Your current home loan = $200,000 New home = $800,000 Total bridging loan (Peak Debt) = $1,000,000 After selling your home for $600,000, that amount is used to pay down your loan Remaining loan (End Debt) = $400,000 Things to consider. Like any major financial decision, it’s important to understand all the moving parts before you commit. Time pressure: You typically have 6–12 months to sell. If you don’t sell in time, the lender may step in to sell the property and/or charge default interest. This is an extra interest rate that a lender charges when you fail to meet your loan obligations — in this case, not selling your property within the agreed timeframe. Interest costs: If interest is capitalised, it means you're not making repayments during the loan period, so the interest gets added to the loan balance instead of being paid separately. This means your loan grows each month. Making even small repayments can help keep this under control. Equity & serviceability: Lenders will assess how much equity you have and whether you can manage the loan during the bridging period. Loan-to-value ratio: If your End Debt ends up being more than 80% of the new property’s value, you may have to pay Lenders Mortgage Insurance (LMI). Existing loan setup: If your current lender doesn’t offer bridging loans, refinancing may be required — sometimes triggering break fees if your existing loan is fixed. This means you may have to pay a penalty if you end a fixed-rate home loan early (before the agreed term is up). Is a bridging loan right for you? That’s the big question. Bridging finance can offer flexibility and peace of mind, helping you move forward with confidence rather than being held back by uncertain sale timing. But it’s not without risk or cost — so it’s vital to understand the structure, timeframe, and repayment expectations. If you’re considering your next property move and want tailored advice on whether bridging finance suits your situation, talk to the team at Ascent Property Co. or Ascent Accountants. We can also put you in touch with finance brokers to discuss what is best for you.
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