If You Are Only Talking About Tax in June, You Are Already Too Late
If your business is turning over $700,000 or more and you are only thinking about tax in June, you are leaving strategy too late.
At this level, tax planning is not about last minute deductions. It is about timing, structure, cashflow and control.
Growing businesses that plan early make better decisions. They protect cash. They avoid surprises.
Here are ten key areas trade, transport and contractor businesses should review well before 30 June 2026.
1. Review Your Forecast Profit Early
Tax planning starts with a clear forecast.
If you do not know your expected profit by March or April, you are planning without visibility.
A current forecast allows you to:
• Estimate your tax position
• Adjust PAYG instalments if needed
• Plan super contributions
• Make informed equipment decisions
Waiting until June limits your options.
2. Time Equipment Purchases Properly
Buying equipment for tax reasons alone often leads to poor decisions.
Before purchasing, consider:
• Do you actually need the asset now
• What is the cashflow impact over the next 12 months
• What are the GST implications
• Do current asset write off rules apply
The right timing can improve cashflow. The wrong timing can create pressure.
3. Manage Your PAYG Instalments
Many businesses pay the wrong amount of tax during the year simply because they do not review their instalments.
If your profit has dropped, you may be able to vary your instalments.
If your profit has increased, you may need to prepare for a higher tax bill.
Ignoring this area often leads to unexpected liabilities.
4. Review Your Business Structure
As your business grows, your structure becomes more important.
If your turnover is approaching or above $700,000, review whether your current setup still works.
You should consider:
• Whether a company structure is suitable
• Whether a trust provides flexibility
• Whether profits should remain in the business
Your structure affects tax, risk and long term wealth.
5. Use Superannuation as a Strategy
Super is more than a compliance requirement. It is a powerful tax planning tool.
Before 30 June, consider:
• Making additional concessional contributions
• Using catch up contribution opportunities
• Ensuring employee super is paid on time
Done properly, this can reduce tax while building long term wealth.
6. Review Division 7A Risks
If you operate through a company and have taken money out personally, you need to review Division 7A.
Unmanaged loans can become taxable dividends.
Before year end, ensure:
• Loan agreements are in place
• Minimum repayments are on track
This is an area where small oversights can create large tax issues.
7. Plan Trust Distributions Early
If you operate through a trust, distribution planning must happen before 30 June.
You should review:
• Expected profit
• Beneficiary tax positions
• Whether additional beneficiaries should be considered
• Required documentation
Late decisions can lead to unnecessary tax outcomes.
8. Clean Up Your ATO Accounts
Review your ATO position before year end.
This includes:
• Outstanding BAS
• Income tax balances
• PAYG instalments
From 1 July 2025, General Interest Charge is no longer deductible. This makes ATO debt more expensive.
Early action protects your cashflow.
9. Review How You Pay Yourself
Many business owners take drawings without a clear plan.
This creates issues with both tax and cashflow.
You should consider:
• Whether to pay yourself a structured wage
• Whether dividends are appropriate
• How much profit should stay in the business
Your personal income strategy should align with your business goals.
10. Plan for the Next Financial Year
Good tax planning does not stop at 30 June.
You should enter the new financial year with:
• A clear tax estimate
• A cashflow plan
• An instalment strategy
• A structured approach to compliance
Starting the year with clarity puts you in control.
Tax Planning Is About Control, Not Last-Minute Fixes
At the $500,000 to $1 million level, tax planning is not about clever tricks.
It is about making informed decisions early.
Businesses that treat tax as part of their overall strategy tend to:
• Build stability faster
• Improve cashflow
• Avoid unexpected tax bills
Work With Advisors Who Plan Ahead
At PLH Accountants, we work with trade, transport and contractor businesses to build tax planning into the year, not just at year end.
If you want to review your 2026 tax strategy before your options narrow, now is the time.