The third quarter of the calendar year—July to September—is an important period for Australian small businesses.
The rush of 30 June may be over, but the new financial year brings fresh reporting obligations, payroll changes and an opportunity to improve tax planning before problems build up.
- Finalise the Previous Financial Year Properly
Start by making sure the financial year ended 30 June has been closed off accurately. Reconcile business bank accounts, credit cards, loans, payroll, accounts receivable and accounts payable.Check that personal transactions have not been recorded as business expenses and that all business income has been captured. Clean records make tax returns easier to prepare and provide a more reliable picture of how the business is performing.
- Deal with July Obligations Early
July can be one of the busiest tax months. For businesses lodging quarterly, the April-to-June business activity statement is generally due on 28 July. Super guarantee contributions for the April-to-June quarter must also generally reach employees’ super funds by 28 July. Different BAS arrangements may apply when lodging through a registered tax or BAS agent.Do not wait until the due date to discover that the business does not have enough cash. Review the likely amount payable as soon as your bookkeeping is complete.
- Adjust to Payday Super
From 1 July 2026, employers are required to pay superannuation in line with each payday rather than relying on the previous quarterly payment system. Contributions generally need to reach an employee’s super fund within seven business days after the employee is paid.Quarter 3 is therefore the time to check payroll software, payment arrangements and cash-flow processes. Super is no longer something that can be left until the end of the quarter. Build it into every pay run and confirm that payments have reached the nominated funds.
- Check Whether a TPAR Is Required
Businesses operating in certain industries may need to lodge a Taxable Payments Annual Report, or TPAR, covering payments made to contractors.Review contractor names, ABNs, addresses and payment totals before lodging. Missing or incorrect supplier information can create delays and unnecessary follow-up work.
It is also worth asking your accountant whether people treated as contractors could legally be considered employees for tax or superannuation purposes.
- Create a Tax Cash Reserve
A profitable business can still experience cash-flow problems if GST, PAYG withholding, income tax and superannuation money has been spent on everyday operating costs.Consider transferring a set percentage of business receipts into a separate tax account each week. Your accountant or bookkeeper can help estimate an appropriate percentage based on your margins, GST position, payroll and expected taxable profit.
- Review the First-Quarter Figures
By September, you should have nearly three months of current-year trading information. Compare sales, gross profit, wages and overheads with your budget and the same period last year.Look for declining margins, rising labour costs, slow-paying customers or expenses that have increased without producing additional revenue.
This review is not only about tax. It gives you time to adjust pricing, reduce unnecessary spending or review PAYG instalments where appropriate, rather than waiting until the end of the financial year.
- Book a Proactive Tax Meeting
Quarter 3 of the calendar year is an ideal time to speak with your accountant, bookkeeper or registered tax adviser. Bring updated bookkeeping records, cash-flow forecasts, planned asset purchases and details of any changes to your business structure or staffing.Good tax planning is rarely achieved through last-minute deductions. It comes from accurate records, timely lodgments, disciplined cash management and professional advice throughout the year.
Use July to September to build better systems, address new obligations and begin the financial year with greater clarity and confidence.
This article provides general information only and does not replace professional taxation, accounting or financial advice.
If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.
This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.
(Feedsy Exclusive)
