The end of the financial year (30 June 2026) is your single best opportunity to reduce your tax bill, maximise deductions, and set your business up for a stronger FY2027. Working with a qualified accountant before the deadline — rather than after — can mean the difference between a healthy refund and an unexpected liability.
EOFY Tax Planning Tips for Small Businesses — 2026 AU Guide
The financial year end is looming, and for Australia's 2.5 million small businesses, it represents far more than a compliance deadline. It's a strategic window to review spending, prepay expenses, top up superannuation, and make sure you're not leaving money on the table. Whether you run a sole trader operation, a family trust, or a small company, the steps you take before 30 June 2026 will directly shape your tax position for the year ahead.
This guide walks you through the most effective EOFY tax planning moves for Australian small businesses in 2026, explains what to discuss with your accountant, and helps you understand which strategies apply to your situation.
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1. Get Your Records in Order Before 30 June
The foundation of good EOFY tax planning is clean, complete records. The ATO estimates that poor record-keeping is one of the leading causes of errors in small business tax returns, contributing to audit risk and missed deductions.
Before 30 June 2026, reconcile your accounting software (Xero, MYOB, QuickBooks) against your bank statements. Make sure all invoices are issued for work completed, all receipts are categorised, and any personal expenses accidentally coded as business expenses are corrected. If you use a vehicle for work, ensure your logbook is current — the ATO requires it to be no older than five years for the cents-per-kilometre or logbook method to apply.
A tidy set of books also makes the conversation with your accountant far more productive and significantly reduces the time — and fees — required to lodge your return.
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2. Maximise the Instant Asset Write-Off
One of the most powerful tools available to Australian small businesses is the instant asset write-off. For the 2025–26 income year, eligible businesses with an aggregated annual turnover of less than $10 million can immediately deduct the full cost of eligible depreciating assets costing less than $20,000 per asset.
This means if you purchase a new laptop, a piece of equipment, tools, or office furniture before 30 June 2026, you can write off the entire cost in this financial year rather than depreciating it over several years. The asset must be first used or installed ready for use by 30 June 2026, so don't delay purchases until July.
According to the ATO's small business benchmarks, equipment investment is among the top deductions claimed by trades and professional services alike. Speak to one of the best accountants in Sydney or your local area to confirm which assets qualify under your specific industry and entity structure.
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3. Review and Prepay Eligible Business Expenses
Another highly effective strategy is prepaying deductible expenses before 30 June 2026. Small businesses operating on a cash basis can generally claim a deduction in the year the expense is paid, even if it covers a period extending into FY2027 — provided the prepayment period does not exceed 12 months.
Common expenses worth prepaying include:
- Business insurance premiums - Subscriptions to industry associations or software tools - Rent on business premises - Marketing and advertising retainers - Website hosting and domain renewals - Professional development courses
By bringing these expenses into FY2026, you reduce your taxable income for this year. If you expect your income to be higher in FY2026 than FY2027, the tax saving from prepaying is even more pronounced. Always confirm with your accountant before making large prepayments, as the rules differ slightly for accruals-based taxpayers.
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4. Top Up Superannuation — For Yourself and Your Staff
Superannuation is one of the most tax-efficient vehicles available to small business owners, yet it is consistently underutilised at EOFY.
For the 2025–26 financial year, the concessional (before-tax) contributions cap is $30,000 per individual. Contributions made to super are taxed at just 15% inside the fund — significantly lower than most personal marginal tax rates. If you're a sole trader or company director, making a personal concessional contribution before 30 June 2026 and lodging a Notice of Intent to Claim a Deduction form with your super fund allows you to claim it as a tax deduction.
According to the Australian Prudential Regulation Authority (APRA), total superannuation assets in Australia reached $3.9 trillion in 2025, reflecting Australians' growing engagement with super as a wealth-building tool. Don't miss this annual window.
For employers, ensure all superannuation guarantee (SG) contributions for the April–June 2026 quarter are received by your employees' super funds before 30 June to be deductible in FY2026. Contributions paid late miss the deadline and push the deduction into the next financial year.
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5. Consider Your Business Structure and Profit Distribution
If your business operates through a trust or company, EOFY is the time to review how profits will be distributed or retained. Trustees must document and resolve any trust distributions before 30 June 2026 — failure to do so can result in the trustee being taxed at the top marginal rate of 47%.
Company directors should also review whether to pay director wages or dividends and how franking credits apply to shareholders. These decisions have significant tax implications and should be made in close consultation with your accountant or tax adviser.
If your structure is no longer the most efficient option for your business size and income level, it may be worth discussing a restructure for FY2027. See our cost guide to understand the typical fees involved in restructuring advice.
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6. Compare Accountant Options and What They Cost in 2026
Not all tax and accounting services are created equal. Here's a snapshot of the typical cost and scope of EOFY services for small businesses in Australia in 2026:
| Service Type | Best For | Estimated Cost (AUD, 2026) | |---|---|---| | Online tax agent (e.g. TaxReturnsOnline, Etax) | Sole traders with simple returns | $150 – $350 per return | | Suburban/regional accounting firm | Small businesses, partnerships, trusts | $800 – $2,500 per year | | Mid-tier CPA firm | Companies, complex structures, SMSF | $2,500 – $8,000+ per year |Prices vary depending on complexity, number of entities, BAS lodgements, and advisory services included. Always request a fixed-fee engagement letter upfront so there are no surprises. You can learn more about what drives pricing in our methodology.
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7. Engage Your Accountant Now — Not After 30 June
According to the Australian Bureau of Statistics (ABS), small businesses that engage a professional tax adviser are significantly more likely to claim all available deductions and less likely to receive an audit notice. Yet many business owners only call their accountant in July — after the planning window has closed.
The strategies above — prepaying expenses, topping up super, purchasing assets, and distributing trust profits — all have hard 30 June 2026 deadlines. Once that date passes, the opportunity is gone for another full year.
Book a 30-minute EOFY review with your accountant before mid-June to leave enough time to implement recommendations. If you don't yet have an accountant you trust, now is the ideal moment to find one.
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Frequently Asked Questions
Q: When is the tax return lodgement deadline for small businesses in Australia in 2026? A: If you lodge through a registered tax agent, the deadline is typically 15 May 2027 for the FY2026 return. However, EOFY *planning* must happen before 30 June 2026 to be effective. Q: Can I claim home office expenses as a small business owner? A: Yes. The ATO's fixed-rate method allows eligible taxpayers to claim 67 cents per work hour for home office running expenses in FY2026. Keep a diary or timesheet as supporting evidence and ensure your workspace meets the ATO's conditions. Q: What is the small business tax rate in Australia for FY2026? A: Businesses operating as a company with an aggregated annual turnover of less than $50 million pay the base rate of 25%. Companies above this threshold pay the standard corporate tax rate of 30%. Q: Is it worth paying for a professional accountant rather than using tax software? A: For most small businesses with employees, multiple income streams, or trust/company structures, the tax savings and risk mitigation provided by a qualified accountant typically outweigh the cost. Tax software works well for straightforward sole trader returns but may miss complex deductions and structuring opportunities.---
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