Don't Be That Guy: Why Savvy Businesses Do Tax Planning Before EOFY

There’s a certain breed of business owner who thinks tax planning is something to do after the fact. The kind who shows up in July, dump-trucks a shoebox of receipts onto their accountant’s desk, and expects magic. If that’s you—congratulations, you’ve officially graduated from the School of Too Little, Too Late.

Let’s set something straight: tax planning isn’t a postmortem. It’s a strategy session, not a seance. And your accountant isn’t a tax necromancer. You want tax sorcery? Do the planning before the end of the financial year. Otherwise, all we can do is point out how much better things could’ve been if you’d bothered to turn up while the books were still alive.

What Does Tax Planning Before June 30 Actually Get You?

Good question. Let’s pretend for a moment you’re smart enough to do this properly.

1. Deductions You Can Actually Use

In Australia, you’ve got deductions that only work if you act before EOFY. Prepay expenses like rent, insurance, or office supplies? Deductible now. Pay super contributions for your employees before June 30? Deductible now. Wait until July 1 to have that epiphany? Sorry, mate—too late. Hope you enjoy paying more tax for fun.

2. Instant Asset Write-Off

Yes, it’s real. But only if you buy and install the asset before the EOFY. Ordering a laptop on June 30 that doesn’t arrive until July? That’s adorable. And also, not deductible this year. Timing matters—more than your accountant’s opinion of your financial awareness.

3. Bad Debt Write-Offs

You’ve got clients who ghosted you in March? Write them off properly before June 30 and you can claim a deduction. But if you only remember their existence in August, guess what? They're now just a sad story, not a tax-saving opportunity.

4. Trust Distribution Resolutions

If you run a trust, you must document how the income is to be distributed before EOFY. Not after. Not “whenever Karen gets around to printing it.” Before. Otherwise, the ATO will treat all trust income as yours personally. Which is like a surprise party, but instead of cake, it's a larger tax bill.

5. Timing Income and Expenses

A little thing called income deferral. Heard of it? If your business allows it, you might delay invoicing until July and shift income into the next financial year. Or bring forward expenses. These are legal strategies. But they require conscious thought and minimal effort—so yes, a stretch for some.

What Happens If You Wait?

Nothing good. Waiting until July to "plan" your taxes is like showing up to a costume party the day after Halloween with your mask and wondering why nobody’s impressed.   

You lose out on deductions. You miss compliance deadlines. You pay more tax than you legally had to. You make your accountant hate you just a little more than usual.

And let’s be honest—some of you are already on thin ice.

The Bottom Line (Since You Clearly Love Lines)

Tax planning isn’t about gaming the system. It’s about understanding the rules while they still apply to this year, and making decisions that save your business real money. Not hypothetical coulda-woulda-shoulda money.