EOFY 2026 tax planning checklist: A comprehensive guide for business owners
Introduction
As 30 June 2026 approaches, it's the ideal moment to pause, review, and prepare. The end of the financial year isn't just about meeting tax obligations; it's a chance to reset, optimise, and make decisions that can benefit your business well beyond this reporting period. Many overlook the value of early planning, only to face rushed deadlines and missed opportunities.
Taking action now gives you the space to get organised, make smarter choices, and avoid last-minute pressure.
To help you make the most of this period, we have created a comprehensive tax planning checklist that covers the key steps for the 2025–26 financial year, and if you need hands-on support along the way, our dedicated business tax experts are just a call away.
Key takeaways
- Pay superannuation before 30 June to claim deductions in the current financial year.
- Write off bad debts before year-end to reduce taxable income and claim GST adjustments.
- Revalue closing stock using the lowest method to minimise taxable profit.
- Dispose of unused or obsolete assets to claim immediate deductions on remaining value.
- Prepay eligible expenses to bring forward deductions under the 12-month rule.
- Properly document staff bonuses before 30 June to secure tax deductions.
What is an EOFY 2026 tax planning checklist?
An EOFY tax planning checklist is a structured list of actions businesses take before 30 June to reduce taxable income, maximise deductions, and stay compliant with Australian tax rules. It helps identify opportunities like prepaying expenses, claiming write-offs, and managing super contributions before the financial year ends.
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EOFY 2026 tax planning checklist: Steps to take before the year ends
Here is the list of EOFY 2026 tax planning tasks to focus on before 30 June so you can maximise deductions and keep your records in order.
1. Verify superannuation guarantee contributions
To claim a tax deduction for the 2025–26 year, superannuation contributions must be received by the complying fund before 30 June 2026. While wages are deductible when incurred, superannuation is deductible only when actually paid. The current Super Guarantee (SG) rate is 12%. Ensure your payroll software correctly calculates this rate for all final pay runs for the financial year.
2. Prepare for the Payday Super transition
From 1 July 2026, the quarterly super payment system ends. Under the new Payday Super regime, you will be required to pay employees' super at the same time you pay their salary or wages. Use this EOFY to review your cash flow and payroll systems to ensure they can handle more frequent payment cycles (weekly or fortnightly) starting in the new financial year.
3. Write off unrecoverable bad debts
If you have customers unlikely to pay outstanding invoices, you can write them off before year-end to reduce your taxable income. To qualify, the debt must have been previously included as assessable income and formally documented as "written off" in your records before 30 June. This process also allows you to claim a GST adjustment in your next BAS, making it the ideal time to review how your BAS is prepared and lodged.
4. Revalue closing stock for tax savings
Review your inventory valuation to minimise taxable profit. The ATO allows you to value stock at cost, market selling value, or replacement value. Choosing the lowest of these three values increases your "Cost of Goods Sold" and reduces your taxable income. This is also the time to write down any damaged or outdated stock.
The ATO gives you three options to value your stock. Picking the wrong one costs you.
5. Scrap or dispose of unused equipment
Identify any assets, tools, or machinery that are broken, obsolete, or no longer used. By disposing of these items and removing them from your asset register before 30 June, you can claim an immediate deduction for their remaining "book value." Businesses that work with an expert online bookkeeper year-round find that this step takes minutes at EOFY rather than days, keeping your records accurate and your tax liability low.
6. Prepay eligible expenses (12-Month Rule)
Businesses with a turnover under $50 million can claim an immediate deduction for expenses paid in advance. To qualify, the service period must be 12 months or less and must end by 30 June 2027. Common examples include prepaying rent, insurance premiums, software subscriptions, or professional memberships to bring forward deductions into the current year.
7. Approve and document staff bonuses
To claim a deduction for staff bonuses in the 2026 financial year, the arrangement must be formalised correctly. This strategy is valuable for motivating employees while managing your year-end tax liabilities.
- Establish a legal obligation: To secure this deduction, your business must create a present commitment rather than just a future intention. The ATO requires the bonus to be recognised as a liability before the 30 June deadline.
- Recognise the liability: The expense is deductible if the obligation is certain and the amount can be reasonably estimated, even if the actual cash payment is made in July or August.
- Formalise the intent: Document the approval within your business records (such as signed board minutes or a formal management resolution) before 30 June.
- Secure the deduction: Creating this paper trail transforms a discretionary plan into a fixed liability, ensuring the deduction is locked into the current reporting period.
8. Maximise the $20,000 instant asset write-off
The $20,000 instant asset write-off allows small businesses (turnover under $10 million) to immediately deduct the full cost of eligible assets costing less than $20,000. The asset must be first used or installed ready for use by 30 June 2026. With the threshold potentially dropping significantly after this date, bringing forward planned equipment or tech purchases can offer substantial tax relief this year.
Instant asset write-off vs Depreciation
When planning purchases before 30 June, choosing the right deduction method can significantly impact your tax outcome.
| Feature | Instant Asset Write-Off | Depreciation |
|---|---|---|
| Deduction timing | Immediate | Spread over years |
| Asset eligibility | Under $20,000 | $20,000+ |
| First-year deduction | 100% | 15% |
| Future deductions | None | Ongoing |
| Best for | Reducing tax now | Long-term planning |
Which option should you choose before 30 June?
- Choose instant write-off to reduce tax immediately
- Choose depreciation to spread deductions over time
- If profits are higher this year → maximise deductions now
- If profits will increase later → spread deductions
9. Claim accrued expenses
You can claim deductions for goods or services received by 30 June, even if you haven't received the invoice yet. Review your supplier activity in late June; if a service has been delivered, enter the estimated amount as an accrued expense to ensure the deduction is captured in the 2025–26 financial year.
10. Prepay investment loan interest
If you have an investment loan, consider prepaying 12 months of interest before 30 June. This allows you to claim the full deduction in the current financial year. This is particularly effective if your income is higher this year than you expect it to be next year, or if you wish to lock in a fixed interest rate.
11. Claim deductions for charitable donations
Donations of $2 or more to registered Deductible Gift Recipients (DGRs) are tax-deductible. Ensure you keep receipts for all contributions. Note that payments where you receive a benefit (like raffle tickets or charity auction items) are generally not deductible.
12. Maximise personal super contributions
The concessional (before-tax) contribution cap for 2025–26 is $30,000. If your super balance was under $500,000 at 30 June 2025, you might also be able to use "unused" cap space from the previous five years. Contributions must be received by your fund by 30 June to count for this financial year.
Note: the cap is scheduled to rise to $32,500 on 1 July 2026.
13. Manage Capital Gains Tax (CGT) carefully
If you have realised capital gains this year, consider selling non-performing assets at a loss before 30 June to offset those gains. Additionally, remember that holding an asset for at least 12 months generally entitles individuals and trusts to a 50% CGT discount.
14. Utilise government super co-contributions
For lower-income earners, the government may provide a co-contribution of up to $500 if you make a $1,000 after-tax contribution. For 2025–26, the lower income threshold is $47,488 (for the full $500), and the upper threshold is $62,488 (for a partial payment). Additionally, the Low Income Superannuation Tax Offset (LISTO) automatically applies to those earning up to $37,000.
15. Avoid the Medicare Levy Surcharge (MLS)
High-income earners without private hospital cover may face an extra 1% to 1.5% tax. For 2025–26, the income thresholds have increased to $101,000 for singles and $202,000 for families. If you are approaching these limits, securing appropriate cover before 30 June will help you avoid this surcharge for the remaining days of the year.
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Common EOFY tax planning mistakes that trigger ATO audits
The ATO's data-matching capabilities are more advanced than ever in 2026. Automated systems now cross-reference your lifestyle, bank data, and industry benchmarks in real-time. Maintaining a clean paper trail is your best defense against unwanted scrutiny.
Watch out for these high-risk triggers:
- Income mismatches: The ATO receives automated data from banks, share registries, and digital platforms (like Airbnb or gig-economy apps). Failing to declare even small amounts of interest or side-hustle income will trigger an immediate automated flag.
- Benchmark deviations: Your business is compared against "small business benchmarks" for your specific industry. If your reported labor costs or cost of goods sold (COGS) fall significantly outside the norm for your sector without explanation, you may be flagged for a review.
- Lifestyle-income discrepancies: The ATO monitors motor vehicle registries, land title offices, and even social media. If you are registering luxury assets or posting about expensive travel while reporting minimal taxable income, it triggers a "lifestyle-to-income" mismatch audit.
- Rounded or estimated figures: Claiming "neat" numbers (e.g., exactly $1,000 for travel or $500 for tools) is a major red flag. The ATO expects precise figures based on actual receipts.
- Unreconciled BAS vs. Tax Return: Discrepancies between the total turnover or GST reported on your quarterly Business Activity Statements and your annual tax return are direct escalation triggers.
- Missing or late super payments: With Single Touch Payroll (STP) data, the ATO can now identify Superannuation Guarantee (SG) shortfalls almost instantly. Unpaid super for even one terminated employee can spark a wider investigation into your entire payroll history.
Final thoughts on EOFY 2026 tax planning checklist
As 30 June 2026 approaches, proactive planning is your best defense against tax-time stress. This year is significant, marked by the $20,000 instant asset write-off deadline and essential preparations for the 1 July Payday Super transition.
By documenting bonuses, maximising super caps, and reviewing asset registers now, you secure vital deductions while shielding your business from advanced ATO data-matching audits.
Don't leave your position to chance. At CleanSlate, we simplify complex compliance so you can focus on growth. Book your EOFY strategy session today to ensure your 2026 tax return is fully optimised.
EOFY 2026 tax planning FAQs
What happens if I buy an asset for $25,000—can I still get a partial instant write-off?
No. The $20,000 instant asset write-off for the 2025–26 year is a "cliff" threshold. If the asset costs $20,000 or more, you cannot claim an immediate deduction for any part of it under this specific rule. Instead, the entire cost must be added to your small business simplified depreciation pool. You would then claim a 15% deduction in the first year (2025–26) and 30% each year thereafter.
I use my personal car for work; what is the 2025–26 "Cents per KM" rate?
The ATO has confirmed the "Cents per Kilometre" rate for the 2025–26 financial year is 88 cents per km.
- Limit: You can claim up to 5,000 business kilometres per vehicle using this method.
- Evidence: While you don't need specific receipts for fuel or repairs under this method, you must be able to show how you calculated the kilometres (e.g., a diary or logbook).
- Alternative: If you drive more than 5,000 km for work, the Logbook Method is usually better, as it allows you to claim a percentage of all actual running costs.
Can I still use the "Small Business Superannuation Clearing House" (SBSCH)?
No. A major change occurring this EOFY is the closure of the ATO's Small Business Superannuation Clearing House. If you have historically used the SBSCH to pay your staff super, you must transition to a new SuperStream-compliant clearing house (usually provided by your payroll software like Xero, MYOB, or your default super fund) before 1 July 2026. This is a critical step to ensure you are ready for the "Payday Super" transition starting the next day.
If I write off a bad debt in June but the customer pays in August, what happens?
This is a common concern for business owners. If you write off a bad debt in June but the customer pays in August, it is a simple two-step process across two tax years. By writing off the debt before 30 June 2026, you reduce your taxable income for the current year. This saves you tax immediately.
When the payment arrives in August, you do not change your old tax return. You simply record that money as income for the new 2026 to 2027 financial year. The tax benefit you get in June is balanced out in the following year when the cash is received.
To keep this compliant, the ATO requires the debt to be genuinely bad at the time of the write off. You must have a paper trail showing you tried to collect the money before 30 June. This includes things like reminder emails or demand letters. As long as you physically mark the invoice as written off in your software by the deadline, you can claim the deduction now and handle the surprise payment as income later.
