Can You Still Reduce Your Tax Before 30 June?

As EOFY gets closer, a lot of business owners start thinking:

“Is there anything I can still do before 30 June to reduce my tax?”

The answer is: possibly. But don’t panic, buy or make rushed decisions just for a tax deduction.

There may still be a few things worth reviewing before the end of the financial year, depending on your business, cash flow and tax position.

1. Prepay eligible expenses

Some business expenses may be deductible in this financial year if they are paid before 30 June.

This could include things like:

• software subscriptions

• insurance

• memberships

• training

• other eligible business costs

But the key word is eligible. Don’t assume everything paid before 30 June automatically gives you the tax result you want.

2. Review unpaid invoices

If you have old invoices sitting there that you are unlikely to collect, now is the time to review them.

Some unpaid invoices may be able to be written off as bad debts before EOFY, but this needs to be handled properly.

Speak with your accountant before writing anything off.

3. Think carefully before buying assets

Buying equipment, technology or other business assets before 30 June may give you a tax benefit, depending on the current rules and your situation.

But this is where business owners can get caught.

Spending money just to “save tax” is not always smart.

If you spend $2,000 to reduce your tax, you have still spent $2,000. So make sure the purchase is something your business actually needs.

4. Check super contribution timing

Extra super contributions may help reduce taxable income in some cases, but timing matters.

The contribution usually needs to be received by the super fund before 30 June, not just paid on the last day of the month.

This is one to discuss with your accountant or financial adviser before acting.

Before You Make Any EOFY Decisions

A few sensible checks:

• Make sure your bookkeeping is up to date.

• Check your cash flow before spending money.

• Keep receipts and supporting documents.

• Don’t make decisions purely for a deduction.

• Speak with your accountant before making major EOFY moves.

EOFY tax planning is not just about reducing tax.

It is about making smart decisions that support the business, not draining the bank account for the sake of a deduction.