June 30 marks more than the end of another financial year. It is an opportunity to review the past 12 months and put better financial habits in place for the year ahead.
Tax planning should not be limited to the weeks before a tax return is lodged. Good systems, accurate records and regular conversations with a qualified tax professional can make tax time less stressful and support better decisions throughout the year.
The following ideas are general in nature. Tax outcomes depend on individual circumstances, so professional advice is important before taking action.
Top 7 for business owners
- Review the past financial year
Examine revenue, expenses, profit, cash flow and outstanding debts. Look beyond the final profit figure and consider what drove the result. Understanding which products, services or clients performed well can guide pricing, budgeting and investment decisions.
- Improve record keeping
Do not wait until next June to organise receipts, invoices and bank transactions. Use accounting software, electronic receipt storage and separate business bank accounts where appropriate. Regular bookkeeping can reduce errors and give you a clearer picture of business performance.
- Prepare a cash-flow forecast
Profit and cash in the bank are not always the same. Map expected income, operating expenses, tax payments, wages, superannuation and major purchases across the coming year. A forecast can identify tight periods early and provide time to adjust.
- Set money aside for tax
Tax obligations can become difficult when money collected during the year has already been spent. Consider using a separate account for income tax, GST and other obligations. Your accountant can help estimate suitable amounts based on your circumstances.
- Review payroll and superannuation
Check employee details, wages, leave balances, payroll reporting and superannuation processes. The beginning of a financial year is a useful time to review employment arrangements and ensure payroll systems reflect current requirements.
- Review assets and expenses
Consider whether equipment, technology, vehicles, subscriptions and insurance still suit the business. Avoid buying something simply to obtain a deduction. A tax deduction does not make an unnecessary purchase free, so every expense should make commercial sense first.
- Meet with your accountant early
Do not make tax advice an annual event. An early meeting can help you discuss business structure, tax instalments, asset purchases, debt and growth goals. Forward planning usually provides more options than acting after year-end.
Top 7 for employees
- Organise your income records
Review income statements, bank interest, investment income, government payments and income from side work. A complete list can reduce the chance of leaving something out when preparing your return.
- Create a system for deductible expenses
Keep receipts and records for expenses directly related to earning your income. Depending on your circumstances, this may include work travel, uniforms, tools, memberships, education or working-from-home costs. Claims must be legitimate and supported by records.
- Track working-from-home costs
If you regularly work from home, establish a process for recording work hours and relevant expenses from the beginning of the year. Reconstructing an entire year at tax time can lead to missing or inaccurate information.
- Check your personal details
Make sure your employer, super fund, bank and relevant government services have your correct details. Review tax file number declarations and employment arrangements when changing jobs or taking on additional work.
- Consider the tax impact of side income
Income from freelancing, online sales, consulting or a second job may affect your tax position. Keep personal and side-business transactions clearly documented, and seek advice about registrations, deductions and instalments early.
- Review your superannuation
Check that employer contributions are appearing in your account and review fees, insurance and investment settings. Superannuation decisions can have long-term consequences, so obtain licensed financial advice before making changes.
- Build a monthly tax routine
Choose a regular time each month to save receipts, update records and check accounts. A few minutes each month is easier than searching through emails, drawers and bank statements at year-end.
A fresh financial start
The new financial year is a natural reset point. The goal is not simply to maximise deductions or chase a larger refund. It is to create stronger systems, understand your obligations and make decisions that support wider financial and lifestyle goals.
Tax rules can be complex and may change. Before implementing any strategy, speak with a registered tax agent, accountant or other appropriately qualified professional who understands your circumstances.
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)
