Building a Stronger Tax Position Before EOFY 2026

Why timing and strategy matter for tax planning

“Plan throughout the year” sounds sensible, but it’s not helpful advice if you don’t know when to act. March is when planning becomes practical.

By March, you have real performance data behind you and meaningful time ahead. That allows for reliable forecasting of taxable income, cash flow pressure, and projected tax liabilities—not guesswork. More importantly, there is still sufficient lead time to respond. Structural adjustments can be implemented properly. Superannuation contributions can be calibrated precisely. Asset purchases can be settled and put to use. March is when risk is reduced and control is regained.

The window is open but it is not indefinite. The following strategic checkpoints determine whether 30 June becomes a controlled outcome or a reactive scramble.

1. Run a Mid-Year Profit Forecast and Use It

Your July-to-December figures are in. Now is the time to project where your taxable income will land by 30 June. This isn't just an accounting exercise—it's the foundation of every smart tax decision you'll make between now and the end of the financial year.

If your projected profit is higher than last year, think about accelerating deductions, bringing forward planned expenses, and reviewing whether your current business structure is still optimal. If profit is lower, there may be an opportunity to defer income or reassess your PAYG instalment rate to free up cash flow.

The businesses with the strongest tax positions are those that plan ahead and move early.

2. Reassess Your Business Structure While You Still Can

This is a conversation many put off until the end of the year, but structural changes take time to implement properly. If you're a sole trader turning over $300,000 or a partnership that's grown significantly, March is the right time to ask whether your current structure is still fit for purpose.

Transitioning to a company structure, establishing a family trust, or reviewing how profits are distributed through an existing trust all carry tax implications—but they also carry deadlines. Changes that aren't in place by 30 June simply can't be backdated.

Reviewing your structure now allows time to consider options carefully, rather than making decisions under EOFY pressure.

3. Maximise Superannuation Contributions Strategically

The concessional contributions cap for the 2025-26 financial year is $30,000. If you haven't been making consistent contributions as a business owner, March is your moment to calculate the gap and plan how to close it before 30 June.

For business owners who also employ staff, March is also the time to review your Superannuation Guarantee obligations and consider whether paying the June quarter early before 30 June makes sense for your deduction position this year. It deserves deliberate planning well ahead of the deadline, not a last-minute call.

If you're eligible to access unused concessional contributions under the carry-forward rules, we can model the most tax-effective strategy before the opportunity expires.

4. Review Your Asset Position and the Instant Asset Write-Off

If you're planning to purchase equipment, vehicles, technology, or other business assets this financial year, March gives you enough runway to ensure those assets are delivered, installed, and genuinely in use before 30 June—which is when deduction eligibility is determined, not when you sign the purchase order.

The instant asset write-off thresholds and eligibility conditions continue to evolve, so confirm current rules (e.g., $20,000 small business threshold) with your adviser before committing. The key point: if you wait until May or June to make asset decisions, you're adding unnecessary risk to a tight timeline.

5. Examine Your Debtor Position With Fresh Eyes

You now have a clearer picture of which customers are consistently slow-paying or have balances that are realistically uncollectable.

Writing off bad debts before 30 June reduces your taxable income—but the write-off must be formally recognised in your accounts during the financial year. If you wait until July to make that call, you've missed the deduction entirely. March gives you time to assess, document, and action this properly.

Beyond the tax benefit, a clean debtor ledger heading into the final quarter also gives you a more accurate picture of your actual cash flow position.

6. Revisit Your Stock Valuation

If your business carries inventory, the value you place on closing stock directly affects your taxable profit. Under Australian tax law, you can choose to value individual stock items at cost, market selling value, or replacement value—and you can choose differently for each item.

March is the right time to conduct a thorough stock review, identify obsolete or slow-moving inventory, and consider whether a revaluation or write-down is appropriate. Doing this now, rather than in a frantic June stocktake, means you have time to make decisions thoughtfully and document them properly.

7. Check Your PAYG Instalment Rate

If your business has had a materially different year compared to the prior year — whether due to growth, a challenging period, or structural changes — your PAYG instalment rate may no longer reflect your expected tax liability.

Businesses that overpay instalments throughout the year are essentially giving the ATO an interest-free loan. Conversely, underpaying can result in a large and unwelcome bill at tax time. A March review of your instalment rate, with your accountant's guidance, can help you right-size your payments for the remainder of the year.

8. Consider the Small Business Tax Concessions Available to You

Australian tax law offers a range of concessions specifically for small businesses—including the small business income tax offset, simplified depreciation rules, the small business restructure rollover, and various CGT concessions that may significantly reduce — and in qualifying circumstances, potentially eliminate — capital gains tax on the sale of business assets, subject to strict eligibility requirements.

Many of these concessions require advance planning or have timing conditions. If there's any possibility your business will undergo a significant transaction or change in the next 12 months, March is the right time to begin that planning conversation—not after the event has occurred.

March Tax Planning Checklist for SMEs

Before April, ask:

[ ] Have we run a mid-year profit forecast?

[ ] If profit is tracking differently this year, have we adjusted our tax strategy?

[ ] Is our current business structure still fit for purpose?

[ ] Have we optimised superannuation contributions (including catch-up opportunities)?

[ ] Are PAYG instalments aligned with our actual projected tax position?

[ ] Have we reviewed asset purchases?

[ ] Have we formally reviewed and written off any bad debts where appropriate?

[ ] Have we reassessed stock valuation for obsolete or slow-moving inventory?

[ ] Have we reviewed eligibility for small business tax concessions?

[ ] Is our cash flow structured intentionally for Q4 and EOFY?

Our team works with Australian SME business owners year-round to develop tax strategies that actually get implemented. If you'd like a mid-year tax planning session to review your current position and identify opportunities before 30 June, we'd love to help.

This article is intended to provide general information only and does not constitute financial or tax advice. Please speak with a registered tax adviser regarding your specific circumstances.

This article is general information only and does not constitute tax advice. Please consult a registered tax agent regarding your specific circumstances.