1. Review your current profit position
Before making any tax decisions, it is important to understand where your business is sitting financially.
A mid-year or pre-30 June review should look at:
- – Current year profit performance
- – Cash reserves
- – Outstanding debtors
- – Expected expenses
- – Upcoming tax obligations
- – Payroll and superannuation commitments
This gives a clearer picture of what tax may be payable and where planning opportunities exist.
For many businesses, reviewing profit early can also highlight areas where margins or costs need attention before the year closes.
2. Consider eligible asset purchases
Depending on your circumstances and current tax legislation, bringing forward business asset purchases before 30 June may create valuable deductions.
This could include:
- – Plant and equipment
- – Vehicles used for business
- – Office technology
- – Computer hardware
- – Business tools or machinery
- – Farming assets, including those contributing to water facilities, fodder storage and fencing.
For WA businesses in sectors like construction, agriculture, trades and transport, timing major purchases correctly can improve both operations and tax outcomes.
The important part is making decisions based on genuine business needs and long-term planning, not simply purchasing for the sake of a deduction.
3. Check superannuation contributions
Super contributions are a common EOFY planning opportunity, but timing matters.
Business owners should review:
- – Employer super obligations
- – Director contributions
- – Salary sacrifice arrangements
- – Contribution caps
- – Payment processing deadlines
A common issue is assuming a payment made late in June will count for the financial year, when clearing dates may push it into July.
Reviewing this early can avoid missed deductions and compliance headaches.
4. Review trust distributions and business structure
If your business operates through a trust or more complex structure, EOFY is an important time to review how income will be distributed.
This may involve:
- – Family trust distributions
- – Reviewing beneficiaries
- – Profit allocation
- – Tax-effective income planning
- – Asset protection considerations
It is also worth checking whether your current business structure is still appropriate.
A structure that worked several years ago may no longer suit:
- – Revenue growth
- – Asset ownership
- – Business expansion
- – Succession planning
- – Tax planning objectives
A strategic review can often identify opportunities well beyond this financial year.
5. Write off bad debts and review receivables
Outstanding debtors can distort both your financial reporting and tax position.
Before 30 June it is worth reviewing:
- – Overdue accounts
- – Debts unlikely to be recovered
- – Aged receivables
- – Credit policies
- – Cash flow impact
Where appropriate, writing off bad debts before year-end may create deductions while also improving reporting accuracy.
For businesses managing seasonal demand or long payment cycles, this can have a meaningful impact.
6. Review prepaid expenses
Some businesses may benefit from bringing forward eligible operating expenses.
Depending on the circumstances, this could include:
- – Insurance premiums
- – Rent
- – Software subscriptions
- – Professional memberships
- – Business services
Timing these correctly may improve tax outcomes while supporting cash flow planning for the new year.
The right approach depends on structure, turnover and broader business strategy.
7. Check payroll, BAS and compliance obligations
EOFY tax planning should also include a compliance review.
This often includes:
- – BAS reconciliations
- – Payroll reporting
- – Single Touch Payroll
- – PAYG withholding
- – GST coding
- – Contractor payments
Errors in these areas can create unnecessary risk and often become more expensive to resolve later.
A proactive review before 30 June reduces pressure and helps ensure reporting is accurate.
