As 30 June approaches, it is important for small business owners to review their financial position and consider strategies to legitimately minimise tax. For Small Business Entities (SBEs)—businesses with aggregated turnover under $10 million—there are a number of valuable concessions available that can help optimise your tax outcome.

Effective year-end tax planning for SBEs typically focuses on accelerating deductions, prepaying eligible expenses, and ensuring all available concessions are fully utilised.

Key Tax Strategies for SBEs

Prepaying Expenses

SBEs can generally claim an immediate deduction for prepaid expenses where:

• The payment is made before 1 July 2026, and
• The service period is 12 months or less and ends before 1 July 2027

Common expenses that may be prepaid include:

• Rent for business premises or equipment
• Lease payments (e.g. vehicles or office equipment)
• Interest on business loans (subject to lender approval)
• Business travel and training courses
• Subscriptions and memberships

Bringing Forward Business Expenses

Consider purchasing consumables, completing repairs and maintenance, or incurring other deductible business costs before 30 June to increase deductions in the current year.

Superannuation Contributions

Employer super contributions are only deductible when received by the fund. To claim a deduction in the 2025–26 year, contributions must be paid and received by 30 June 2026. Make  sure you are prepared for the closure of the ATO Small Business Clearing House at 11:59 pm AEST on 30 June and the introduction of PayDay Super from 1 July 2026.

Fringe Benefits

Costs associated with providing fringe benefits to employees may be deductible if incurred before year-end.

Instant Asset Write-Off

SBEs using simplified depreciation rules can take advantage of the $20,000 instant asset write-off for the 2025–26 financial year:

• Eligible assets costing less than $20,000 can be immediately deducted
• Assets must be installed or ready for use by 30 June 2026
• The threshold applies on a per-asset basis, allowing multiple asset write-offs

In addition, if the balance of the small business depreciation pool is below the threshold, it can be fully written off.

Accrued Expenses

You may also be able to claim deductions for expenses incurred but not yet paid at 30 June 2026, including:

• Wages, bonuses, or commissions owed
• Interest on business loans
• Directors’ fees where there is a clear obligation to pay

Information Required for Your Tax Return

To help prepare your business tax return, you should have the following information ready:

• Stocktake details as at 30 June 2026
• Debtors listing, including bad debts written off before year-end
• Creditors listing as at 30 June 2026
• Asset register and details of assets acquired or disposed of
• Details of hire purchase or finance agreements
• Records of loans to and from related or third parties
• Income records, including amounts where tax was withheld (e.g. no ABN quoted)
• Management accounts, bank statements, and financial reports

Taking action before 30 June can make a meaningful difference to your tax position. By leveraging available SBE concessions and ensuring your records are complete, you can maximise deductions while staying compliant with ATO requirements.

Need Help with your Business, Bookkeeping, Tax or SMSF requirements?

If you would like a little help, please get in touch with us for assistance. We can help with your business, bookkeeping, tax and SMSF requirements. To book an appointment, use our online booking system, give us a call on 07 3289 1700, or email us at reception@rgaaccounting.com.au.We look forward to assisting you this tax season!

Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation.