Tax planning has a timing problem. Most people think about it in June, with the financial year almost over and the most useful levers already out of reach. By then you are reacting, not planning. The owners who consistently feel in control of their tax tend to do the same thing: they look at it a little throughout the year, rather than all at once at the end.
This is not about working harder. A handful of short check-ins across the year usually captures most of the benefit, and removes the stress of a last-minute rush.
Why June is too late for the big decisions
Many strategies that genuinely change your position only work if you act before the year ends, and several need time to process. Leave them to the final week and ordinary delays can quietly cost you the benefit.
- Super contributions only count for the year if the fund actually receives them in time. The concessional cap is $30,000 (contributions are generally taxed at 15% in the fund), and unused cap can sometimes be carried forward if your total super balance is under $500,000.
- Bringing forward a deductible expense, or deferring income where appropriate, has to happen before 30 June, not after.
- Decisions about a major purchase or asset are easier to weigh up when you are not staring at a deadline.
Plan in advance and you act with room to spare. Plan in the last week and you are at the mercy of the calendar.
What year-round planning actually looks like
You do not need a complicated system. Proactive planning is mostly a few good habits repeated through the year.
- Keep your records current so you always have a rough idea of where you stand.
- Set money aside for tax as you earn it, instead of scrambling to find it later.
- Look at your numbers part-way through the year, not only at the end.
- Make decisions about purchases, contributions and timing deliberately, with the tax effect in mind.
When you can see your position, you can make choices about it. When you cannot, the year decides for you.
Build a quarterly rhythm
A short check-in each quarter keeps small issues from becoming June-sized problems. It also smooths out the workload so nothing piles up.
- Reconcile your accounts and confirm your records are up to date.
- Check that what you have set aside for tax still matches what you are likely to owe.
- Note any deductible costs you can substantiate, and keep the paperwork as you go rather than reconstructing it later.
- If you use a vehicle or work from home for your business, keep records contemporaneously. The car rate is 88c per kilometre up to 5,000 business kilometres (or use the logbook method), and the fixed-rate method for working from home is 70c per hour.
For employers, a quarterly rhythm also helps you stay on top of super guarantee obligations, currently 12%. Payday Super starts from 1 July 2026, tying super payments more closely to payday, so good habits now are worthwhile.
Plan your cash flow for tax
A tax bill often hurts not because of the amount, but because the money has already been spent. Treating tax as a cost you provision for, like any other, takes the sting out.
- Estimate your likely tax across the year and set a portion aside regularly, ideally in a separate account.
- Remember the brackets stack: nil up to $18,200, 16% to $45,000, 30% to $135,000, 37% to $190,000, then 45% above that, plus the 2% Medicare levy. A strong year can push more income into a higher band, so a good year is exactly when to plan ahead.
- If you are registered for GST (required once turnover reaches $75,000), the 10% you collect is not yours to spend; set it aside as it comes in.
- Worth knowing: from 1 July 2025, the ATO's general interest charge and shortfall interest charge are no longer deductible, so falling behind has become more expensive. Staying current matters more than ever.
Review your structure as you grow
A mid-year review often surfaces opportunities that disappear if you wait, simply because you still have time to act on them. It also heads off nasty surprises, since you already have a rough sense of your tax before the year closes. The goal is no shocks and no missed chances.
One thing worth revisiting as you grow is your structure. What suited you when you started may not suit you once your income rises or your business changes.
- Sole traders are taxed at personal rates, so as profits rise it can be worth asking whether another structure fits better. A company, for example, is generally taxed at 25% for a base rate entity (otherwise 30%) but brings its own rules, costs and obligations.
- If you hold assets that may grow in value, the timing of a sale matters: the 50% CGT discount can apply to assets held longer than 12 months. That is a planning point, not a last-minute one.
- Any change in structure has legal, asset-protection and administrative consequences as well as tax ones, so make it deliberately and with advice, not in a rush.
Make it a habit
You do not need to think about tax every day. A short check-in each quarter, plus a proper review before year end, is usually enough to capture almost all of the benefit. The difference between a stressful June and a calm one is rarely effort; it is timing.
If you would rather have a proactive adviser than a once-a-year one, we are happy to help you build a rhythm that suits how you work. Book a chat at nebulaaccounting.au or call 0433 822 227.
This article is general information only and does not take account of your personal circumstances — it is not personal tax, financial or legal advice. Tax laws change and apply differently to different people. Nebula Accounting Pty Ltd is a registered tax agent (No. 26259377); please speak with us or check with the ATO before acting.