Effective 30 June tax planning separates dated actions, which must be completed before year end, from tidy-up items that can be done afterwards. Trust resolutions, superannuation payments and asset installation are dated; record-keeping generally is not.
Table of Contents
The 30 June financial year end is the single most time-pressured date in the Australian business tax calendar. Decisions made in the final weeks before 30 June, or not made, can have a direct impact on the business’s tax liability for the year. This checklist covers the key actions Australian businesses should take before 30 June 2026, including the new obligations that apply for the first time this financial year.
Work through each item with your adviser. Not every item will apply to every business, but missing any one of the items that does apply can be an expensive oversight.
Key Takeaways
1. Trust Distribution Resolutions: Where 30 June Tax Planning Australia Starts
If you operate a discretionary trust, a valid written trust distribution resolution must be passed by 30 June 2026. Without it, the entire trust income is taxed at 47 per cent in the trustee’s hands. The resolution must be signed, must name valid beneficiaries, and must be passed before midnight on 30 June.
2. Superannuation Contributions
Concessional contributions (employer and personal deductible contributions) must be received by the fund by 30 June to count in the 2025-26 financial year. The concessional contribution cap is $30,000 per person in 2025-26. The non-concessional cap is $110,000, or up to $330,000 over three years using the bring-forward rule. Note that from 1 July 2026, Payday Super requires super guarantee contributions to be received by the employee’s fund within 7 business days after payday. This obligation applies from next financial year.Â
For business owners with Division 296 exposure (total super balance approaching or above $3 million), review the contribution strategy with your SMSF administrator before making further non-concessional contributions.
3. Prepay Deductible Expenses
Small business entities (aggregated turnover below $10 million) can claim an immediate deduction for prepaid expenses where the benefit of the expenditure extends no more than 12 months beyond the end of the current income year. Eligible expenditure includes rent, insurance premiums, subscriptions, and lease payments. Payments must be made before 30 June to be deductible in the 2025-26 year.
4. Instant Asset Write-Off
The instant asset write-off for small businesses allows an immediate deduction for eligible depreciating assets used in the business. Businesses with aggregated turnover below $10 million can claim the full cost of eligible assets in the year of first use or installation. Assets must be installed and ready for use by 30 June 2026 to qualify for the 2025-26 write-off. Confirm eligibility and any cost threshold with your adviser before purchasing assets for tax purposes.
5. Write Off Bad Debts
A bad debt deduction is available for a debt that was previously included in assessable income and that the business has written off as bad in its accounts before 30 June. The key requirements are: the debt must have been included in the business’s assessable income (or constitute a money lending debt); and the debt must actually be written off. A board or management decision must be made and documented before 30 June. Debts that are merely doubtful do not qualify.
6. Division 7A Review
Division 7A of the ITAA 1936 treats loans, payments, and forgiven debts from a private company to shareholders or associates as unfranked dividends unless they are placed on a complying loan arrangement. If your company has made payments to shareholders or associated persons, or if there are existing Division 7A loans, minimum annual repayments must be made before 30 June to avoid a deemed dividend. Review all company-to-shareholder transactions with your accountant before year end.
7. Stock and WIP Review
Review trading stock values before 30 June. Businesses can elect to value closing stock at cost, market selling value, or replacement value, choosing the lowest value reduces assessable income. For service businesses, work in progress (WIP) that has not been invoiced may need to be reviewed against the relevant WIP accounting rules. Ensure your stock records are accurate as at 30 June.
8. Capital Gains and Losses
Review the business’s capital gains position for the year. Capital losses can be applied against capital gains to reduce net capital gain. If the business has unrealised losses on assets, consider whether disposal before 30 June is appropriate to offset gains crystallised during the year. For small business entities and individuals, the small business CGT concessions may apply to reduce or eliminate capital gains on active assets. Review eligibility with your adviser.
9. Division 296 — SMSF Members with Balances Above $3 Million
Division 296 takes effect from 1 July 2026, not 30 June. However, planning for Division 296 should be done before year end. Review each SMSF member’s total superannuation balance as at 30 June 2026. This will be the starting TSB for the first Division 296 calculation year (2026-27). Members with TSBs above or approaching $3 million should review their contribution strategy, liquidity position, and investment strategy with their adviser.
10. AML/CTF Registration — Tranche 2 Entities
From 1 July 2026, accountants, lawyers, conveyancers, real estate agents, trust and company service providers, and dealers in precious metals and stones become reporting entities under the AML/CTF Act. If your business provides any of these designated services, registration with AUSTRAC is required. Failure to register by 1 July 2026 constitutes a contravention of the AML/CTF Act. Contact DBA Advisory to assess your obligations and arrange registration if required.
11. Payday Super Readiness (From 1 July 2026)
From 1 July 2026, employers must ensure super guarantee contributions are received by each employee’s fund within 7 business days after payday. This is a significant change for businesses that currently pay quarterly. Before 30 June, confirm that your payroll system is configured to calculate and process superannuation at each pay run. Businesses that process payroll manually should arrange with their payroll administrator to update the payment cycle. The ATO’s SuperStream system handles SMSF payments electronically.Â
30 June tax planning Australia: sorting what can still land from what cannot
DBA Advisory runs this checklist against your actual position rather than a generic list, so the items that do not apply to you come off it early. dbaadvisory.com.
Sort the list by who else has to act. A super contribution depends on the fund receiving it, an asset write-off depends on a supplier delivering and you installing it, and a bad debt write-off depends on a decision documented before year end. Those items have a real deadline earlier than 30 June, and they are the ones that quietly miss.
Eleven items, from trust resolutions and superannuation through prepayments, the instant asset write-off, bad debts, Division 7A, stock and work in progress, and capital gains, to Division 296 for affected SMSF members and AML/CTF registration for newly captured firms. Verify current thresholds, rates and dates against ATO guidance for the year before acting.
Frequently Asked Questions (FAQs)
Passing a valid trust distribution resolution by 30 June is the single most important action for a discretionary trust. Without a signed, valid resolution by 30 June, the entire trust income is taxed at 47 per cent in the trustee's hands. The resolution must name valid beneficiaries, be in writing, and be signed before midnight on 30 June 2026.
Small business entities (aggregated turnover below $10 million) can claim an immediate deduction for prepaid expenses where the prepayment period does not exceed 12 months and the benefit does not extend more than 12 months beyond the end of the income year. Payments must be made and received by the payee before 30 June to count in the 2025-26 year. Larger businesses are subject to the prepayment rules in Division 82 of the ITAA 1997.
Division 7A treats loans, payments, and forgiven debts from a private company to shareholders or associates as unfranked dividends unless structured on a complying loan basis. At 30 June, minimum annual repayments on Division 7A loans must have been made for the year. Failure to make the minimum repayment results in the outstanding amount being treated as an unfranked dividend in the shareholder's hands, taxable at their marginal rate.
From 1 July 2026, employers must ensure super guarantee contributions are received by each employee's fund within 7 business days after payday. This replaces the current quarterly payment cycle. Employers who do not update their payroll systems before 1 July face an immediate compliance risk from the first pay run after commencement. The ATO's SuperStream system handles electronic payments to both APRA-regulated funds and SMSFs.
Yes, if your business provides designated services under the AML/CTF Act. From 1 July 2026, the Tranche 2 sectors (including accountants, lawyers, conveyancers, real estate agents, and trust and company service providers) become reporting entities. Registration with AUSTRAC is required. Non-registration is a contravention of the Act from day one of commencement. Contact DBA Advisory to assess your designation and arrange registration.
How DBA Advisory Supports You
DBA Advisory offers fixed-fee 30 June tax planning advisory, trust distribution resolutions, and SMSF review engagements with no hidden costs. Contact our team at dbaadvisory.com to discuss your requirements. General information only, not legal, tax, or compliance advice. Verify all obligations against current AUSTRAC, ATO, and legislative guidance.
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Disclaimer
© DBA Advisory 2026. This article is intended as general information only and does not constitute legal or compliance advice. Businesses should seek qualified advice specific to their circumstances before acting on any information contained in this article.
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