As 30 June 2026 draws near, it’s the perfect time to get your year-end tax planning in order. Taking proactive steps now can help you maximise deductions, meet compliance obligations and reduce your tax bill. This year, EOFY planning is not just about deductions, it is also about preparing for some important changes from 1 July 2026, particularly for employers.
Following the recent 2026–27 Federal Budget announcement, we recognise that there may be a number of proposed changes and areas of uncertainty affecting small businesses. Tax rules and incentives can change quickly, so it is important to consider how these developments may influence your planning both now and into the new financial year. Although some of the details have not yet been released, our team is available to help you navigate these changes and discuss how they may impact your circumstances.
Below are some practical EOFY 2026 tax tips for businesses to consider before 30 June.
Instant Asset Write-Off
For the 2026 income year, small businesses (aggregated turnover less than $10 million) are able to write off assets if their cost is less than $20,000 (“instant asset write-off”). It is important to note that only small businesses that opt-in to apply the simplified depreciation rules that will have access to the instant asset write-off rules. This threshold will also apply to determine whether the full pool balance can be written off.
Larger businesses can only write off assets with a cost less than $100 including GST. All other assets will generally need to be depreciated over their effective lives, set by the Commissioner.
Please note that car depreciation limit is $69,674 for 2026.
Check super payments and allow time for processing
Businesses must pay superannuation guarantee for employees so that their superfund receives the contribution by the 28th day after the end of each quarter. Superannuation for the June 2026 quarter must be received by the employee’s superannuation fund by 28 July 2026 to meet June quarter obligations. Note, contributions are only deductible in the 2026 financial year if received by the fund by 30 June 2026.
If you are making super contributions via a clearing house, allow at least 10 days for the payments to reach the super fund by 30 June 2026 or 28 July 2026, depending on which period you wish to claim a deduction. This will require the payment to be made by 20 June 2026 or 20 July 2026 respectively. If not using a clearing house, you should make the payment no later than close of business Thursday 25 June 2026.
The current superannuation guarantee rate for 2026 is 12% which started from 1 July 2025.
Get ready for Payday Super from 1 July 2026
One of the biggest changes for employers is that Payday Super starts on 1/07/2026. Under the new rules, employers will generally need to pay super at the same time as salary and wages, with the contributions required to be received by the super fund within 7 business days of payday. The super rate remains at 12% for the 2027 financial year.
Businesses should review payroll systems, super payment processes and employee data now so they are ready for the new requirements from July.
If you use the SBSCH, plan your transition now
If your business currently uses the Small Business Superannuation Clearing House (SBSCH), it is important to know that the service will close permanently from 1/07/2026. Existing users should move to an alternative payment method and download their records before the service closes.
Review debtors and write off bad debts if appropriate
A review of trade debtors (i.e. accounts receivable) should be conducted to identify any amounts considered to be bad debts and whether these should be written off prior to 30 June 2026. To be deductible in the 2026 financial year, a bad debt must be written off by 30 June 2026. There must be a decision to write off the debt and that decision should be documented in writing prior to 30 June.
Consider bringing forward deductible expenses
EOFY can be a good time to review whether there are legitimate business expenses that can be paid before year end. Depending on your circumstances, prepaid expenses such as subscriptions, insurance, rent and other business running costs may be deductible now rather than next year. For eligible small businesses, an immediate deduction may be available where the 12-month rule is satisfied.
That said, tax should not drive spending on its own. The best approach is usually to bring forward expenses you were already planning to incur, rather than spending cash purely for a deduction.
Don’t forget trading stock and obsolete inventory
If your business carries stock, the year-end stock position can directly affect taxable income. Under the general trading stock rules, if closing stock is higher than opening stock, the increase is generally assessable income; if it is lower, the decrease may reduce assessable income.
For eligible small businesses, the simplified trading stock rules may apply. If the value of trading stock has changed by $5,000 or less, you may not need to conduct a formal stocktake for tax purposes. This is also a good time to review any damaged, obsolete or slow-moving stock and whether it has been appropriately valued
Bonuses
Unpaid bonuses may still be deductible if a legal liability to pay the bonus exists at year-end. The obligation must be clearly documented and able to be calculated by 30 June 2026.
Review ATO debt and the true cost of carrying it
If your business is carrying an ATO debt, it is worth reviewing this before year end. From 1/07/2025, ATO general interest charge (GIC) and shortfall interest charge (SIC) incurred on or after that date are no longer deductible, which means the after-tax cost of carrying tax debt is now higher.
Where cash flow allows, reducing ATO debt sooner rather than later can help minimise interest costs. If not, it may still be worth reviewing payment plans and cash flow strategies before the new financial year begins.
Company Loan Repayments
Companies that made loans to shareholders or their associates in the 2025 or earlier financial years under a Division 7A loan agreement need to be aware that minimum loan repayments should be made by 30 June 2026 to avoid the remaining balance being treated as unfranked dividend for tax purposes.
Repayments made by way of dividends must be declared and paid (this can include the crediting of a loan account with proper documentation rather than in cash) by 30 June 2026.
The interest rate for the Division 7A loans has decreased to 8.37% for the 2026 financial year.
Trust Distribution Decisions
The Australian Taxation Office (ATO) is maintaining a strong focus on trust distributions, particularly those made to adult children, companies, and non-residents. To avoid trust income being taxed at the highest marginal tax rate, trustees must ensure that valid distribution decisions are documented by 30 June 2026, in accordance with the trust deed. This includes documenting decisions through a formal minute, trustee resolution, or record of decision depending upon the circumstances.
It is crucial to avoid reimbursement agreements under section 100A of the ITAA 1936, where income is distributed to one beneficiary (e.g. an adult child) but the benefit is received by another (e.g., a parent). If such arrangements are identified, the ATO may tax the income in the hands of the trustee at the top marginal rate. Please note that the ATO has an unlimited period of review regarding section 100A arrangements.
In accordance with recent case law it is also important for trustees to give real and genuine consideration to all beneficiaries listed in the trust deed. Failure to do so can be seen as a breach of fiduciary duty.
To stay compliant and optimise tax outcomes for 2026, trustees should review their trust distribution strategy, ensure accurate and complete documentation, and seek professional advice where needed.
Single Touch Payroll (STP) Finalisation
Employers must ensure the Single Touch Payroll (STP) year-end finalisation report is lodged by 14 July 2026. If fringe benefits over $2,000 were provided during the FBT year, the grossed-up taxable value must be included in the STP finalisation.
Need Help with Your EOFY Tax Planning?
Now is the time to take action and ensure you’re making the most of your year-end opportunities.
Disclaimer
This article contains general information only and does not constitute personal or taxation advice. You should not act on the information provided without seeking professional advice specific to your circumstances.
