Tax Planning for Small Business Owners in Australia: What to Do Before 30 June

For many business owners, tax only becomes urgent in the final weeks of the financial year.

That is when the questions start.
What will the tax bill be?
Is there anything we should do before 30 June?
Are the numbers even accurate?

This is exactly why tax planning for small business owners matters.

Tax planning is about reviewing your financial position before the end of the financial year so you can understand your likely tax outcome and make informed decisions before 30 June. Instead of reacting at the last minute, you have time to look at your numbers properly and plan ahead.

For Australian business owners, proactive tax planning can improve cashflow, reduce stress at year end, and help ensure you stay aligned with Australian Taxation Office (ATO) requirements.

What is tax planning?

Tax planning is a proactive review of your business finances before the end of the financial year.

The goal is to understand where your business stands now, estimate your potential tax position, and identify actions that may be worth considering before 30 June.

For small business owners, a tax planning review often includes looking at:

year-to-date profit and expenses
super contributions and payroll obligations
asset purchases and depreciation
business cashflow
outstanding ATO liabilities
timing of income or expenses
business structure considerations

According to the Australian Taxation Office (ATO), businesses must keep accurate records and correctly report income and deductions to support their tax obligations. Good record keeping is essential to ensure tax returns and BAS are prepared accurately. The ATO generally requires businesses to keep records for at least five years.

Tax planning helps make sure these areas are reviewed before the financial year closes.

Why tax planning matters for business owners

Many people think tax planning is simply about reducing tax. In reality, it is more about clarity and preparation.

When you understand your likely tax position early, you can make better business decisions.

Better cashflow planning

Unexpected tax bills are one of the biggest financial stresses for business owners.

When tax planning is done early, you can estimate upcoming tax liabilities and prepare for them. This allows you to manage cashflow rather than scrambling to find funds after the year ends.

Avoiding last-minute decisions

Many financial decisions need to happen before 30 June to affect the current financial year.

Leaving everything until the final weeks often limits your options. Planning earlier allows decisions to be made thoughtfully rather than under pressure.

Staying aligned with ATO requirements

The ATO emphasises that businesses must:

report all income
only claim deductions they are entitled to
maintain proper records
meet employer obligations such as super and payroll reporting

A tax planning review can help identify issues early so they can be addressed before tax returns are prepared.

Understanding business performance

Tax planning often reveals more than just tax.

It can highlight whether the business is actually profitable, whether expenses are under control, and whether cashflow is supporting the owner’s goals.

What business owners should review before 30 June

Every business is different, but there are several common areas that should be reviewed during tax planning.

1. Your year-to-date financial results

Tax planning starts with reliable numbers.

If bookkeeping is behind, decisions are often made using incomplete information. Your accounts should reflect what is actually happening in the business before any planning takes place.

This usually involves reviewing:

total income for the year so far
cost of sales and gross profit
operating expenses
payroll and super
owner drawings or distributions
GST and BAS position
outstanding invoices and bills

Without up-to-date numbers, tax planning becomes guesswork.

2. Record keeping and substantiation

The ATO requires businesses to keep records that explain all transactions and support what is reported in tax returns and BAS.

Examples of records include:

invoices and receipts
bank statements
payroll reports
asset purchase documents
contracts and agreements

These records are important because they support deductions claimed in the business. If expenses include both business and private use, the ATO requires the business portion to be calculated appropriately.

Strong record keeping reduces risk and makes tax planning significantly easier.

3. Business income

All business income must be correctly captured and reported.

This includes income received through:

bank deposits
cash sales
online platforms
merchant facilities
payment apps or digital wallets

During tax planning, it is important to check that income recorded in the accounting system matches the activity across all payment platforms and bank accounts.

4. Deductions and business expenses

Business expenses are another important area of review.

While deductions can reduce taxable profit, they must be genuine business expenses and properly documented.

Common areas reviewed during tax planning include:

equipment or asset purchases
repairs and maintenance
prepayments
trading stock adjustments
bad debts written off
staff bonuses or wages
super contributions

The timing of these items can sometimes affect which financial year they fall into, which is why reviewing them before 30 June can be important.

5. Employer obligations and super

If your business employs staff, payroll compliance should also be reviewed before year end.

Employers must ensure they:

calculate and pay the correct super guarantee
meet super payment due dates
finalise payroll reporting through Single Touch Payroll (STP)

The super guarantee rate for employees is 12% for salary and wages paid from 1 July 2025 to 30 June 2026.

Failing to pay super on time can trigger the Super Guarantee Charge, which is generally more costly than paying super by the due date.

6. ATO debts and tax liabilities

If your business currently has an ATO debt, this should also be reviewed as part of tax planning.

From 1 July 2025, interest charged by the ATO on tax debts is no longer tax deductible. This means carrying ATO debt may become more expensive for businesses.

Planning ahead allows business owners to:

understand upcoming tax liabilities
review payment arrangements
plan for BAS and income tax obligations
avoid tax debt growing unexpectedly

7. Business structure considerations

Tax planning can sometimes highlight larger questions about how the business is structured.

For example:

Is the current structure still appropriate for the size of the business?
Are profits being distributed in a way that aligns with the owners’ goals?
Has the risk profile of the business changed?

These questions require personalised professional advice and should be reviewed carefully before any decisions are made.

When should tax planning happen?

Ideally, tax planning should happen before the final weeks of June.

The earlier the review happens, the more time there is to assess the numbers and consider appropriate actions before the financial year closes.

Waiting until the last minute often limits options and increases pressure.

For many businesses, the most useful time for tax planning is once year-to-date financial reports are reasonably accurate and up to date.

Common tax planning questions from business owners

When should tax planning be done?

Most tax planning happens between April and June, once there is enough financial data to estimate the year-end position but still enough time to take action if needed.

Is tax planning only for large businesses?

No. Many small and medium businesses benefit from tax planning because it provides clarity around their tax position and helps avoid surprises.

Does tax planning guarantee a lower tax bill?

Not necessarily. The purpose of tax planning is to understand your position and make informed decisions. Any outcomes depend on your specific business circumstances.

How Amarose Accounting helps with tax planning

Our Tax Planning service is designed to give business owners clarity before the end of the financial year.

During a tax planning review we typically:

review your year-to-date financial results
estimate your potential tax position
identify areas that may require attention before 30 June
review payroll, super, and compliance obligations
discuss upcoming business decisions that may affect tax and cashflow

This process helps business owners understand where they stand and what they should be preparing for before the financial year ends.

Because every business is different, tax planning needs to be based on your actual numbers and circumstances. Any decisions or strategies should always be discussed with a qualified professional.

Final thoughts

Tax planning is not just about tax.

It is about understanding your business numbers, planning for cashflow, and making better decisions before the financial year closes.

For many business owners, a proactive tax planning review can mean the difference between a stressful tax season and one that feels organised and predictable.

If you would like clarity around your tax position before 30 June, now is the right time to review your numbers and plan ahead.

Thinking about tax planning this year?

If you would like to understand your likely tax position before the financial year ends, our team can help review your numbers and talk through what to prepare for.

Get in touch with Amarose Accounting to book your Tax Planning review before 30 June. Email admin@amarose.com.au or Book in a Free Discdovery Call