Tax Time is Coming: 3 Smart Ways to Reduce Your Tax Bill Before June 30

1) Prepay key expenses (use the 12‑month rule)

Prepaying certain costs lets you bring forward a deduction into this financial year. Under the ATO’s prepayment rules, many small businesses can claim an immediate deduction for eligible prepayments if the service period is 12 months or less and ends in the next income year (often called the 12‑month rule) (Australian Taxation Office — Deductions for prepaid expenses, see “12‑month rule”).

Practical examples:

  • Insurance, software, subscriptions — pay the annual renewal now (coverage must finish within 12 months and by the end of next income year).
  • Training, marketing, coaching — lock it in pre‑EOFY where the service period meets the 12‑month rule.
  • Materials and small tools — normal deduction rules apply; keep tax invoices and prove business use.

Tip: Only prepay what you were going to buy anyway; don’t spend $1 to save 25–30 cents in tax.

2) Use the $20,000 instant asset write‑off (eligible small businesses)

If you’re upgrading a ute, trailer, machinery or equipment, check if the $20,000 instant asset write‑off applies. For eligible small businesses (aggregated turnover under the relevant threshold), assets costing less than $20,000 can be immediately deducted rather than depreciated, provided they are first used or installed ready for use within the relevant period. ATO — Instant asset write‑off

As at 2 October 2025, the ATO notes a temporary $20,000 threshold for small business entities in the 2024–25 and 2025–26 income years under recent legislation changes. Always check the current law, limits and dates before buying. ATO — New legislation update

To claim correctly:

  • The asset’s business portion must be under the threshold and you must keep records. ATO

  • It must be installed ready for use within the eligible window (purchase date alone isn’t enough). ATO

Checklist before you buy: confirm eligibility, delivery/installation timing, business-use percentage, and whether a chattel mortgage or lease changes the treatment.

3) Super contributions: deductions that build your future

Super is one of the rare strategies that helps now and later.

  • Employer super (your team): You generally claim a deduction in the year the fund receives the contribution — not when you click ‘pay’. Allow clearing time so the money is in the fund before 30 June if you want the deduction this year. ATO — Employer super deductions (PCG 2020/6)

  • Your own super (personal concessional contributions): You may be able to claim a tax deduction if you lodge a valid notice of intent and stay within the concessional cap. From 1 July 2024, the concessional cap is $30,000 per year (was $27,500 up to 30 June 2024). ATO — Concessional contributions cap

Heads‑up: High‑income earners may face Division 293 tax on concessional contributions when income plus concessional contributions exceed $250,000. ATO

Put it together: a quick EOFY action plan

By end of March

  • Forecast profit, tax and cash. Prioritise prepayments that genuinely bring forward deductions.

  • Map potential asset upgrades; confirm eligibility and delivery/installation dates.

By end of May

  • Lock in prepayments that meet the 12‑month rule.

  • Finalise asset purchases so they’re installed ready for use in time.

  • Plan super timing — schedule payments early so funds receive them before 30 June.

Mid‑June

  • Re‑confirm caps and thresholds on the ATO site (they change).

  • Push super contributions through well before payroll cut‑offs.

  • File all invoices and proof of payment.

Common traps to avoid

Next step (no jargon, just a plan)

Want a second pair of eyes on your numbers? Our accountants and advisors in Cairns and the Sunshine Coast help trade businesses plan tax early and keep cash in the business.

Book a quick Tax Planning Call → https://trinityadvisory.com.au/book-a-call/

Or read more about our services:

FAQ

  1. What’s the easiest way to reduce tax before 30 June?
    Answer: For many trades, it’s a mix of prepaying 12‑month expenses, timing super payments so the fund receives them before 30 June, and using the $20,000 instant asset write‑off where eligible. See the ATO on prepayments, instant asset write‑off and super caps.

  2. Do I have to pay or must my super be received by 30 June to claim a deduction?
    Answer: For employer contributions, the deduction is generally available when the fund receives the money, not the date you initiate payment. Allow clearing time. 

  3. Does every asset under $20,000 qualify for the instant asset write‑off?
    Answer: No. Eligibility depends on your business status, asset cost and that it’s first used or installed ready for use in the relevant period. Private use and financing method can affect the claim. 

  4. Can I deduct my own super contribution?
    Answer: Yes, if you lodge a valid notice of intent and stay within the concessional cap ($30,000 from 1 July 2024). 

  5. Can I prepay 2–3 years of expenses to boost deductions?
    Answer: Usually no. The ATO’s 12‑month rule limits immediate deductions for prepayments to services 12 months or less that end in the next income year. Longer periods are generally apportioned.

Not advice. The following is general information for Australian small business owners. Always confirm details with the ATO or your tax adviser for your situation.

Why act now (not on 29 June)

If you’re running jobs, wrangling crews and quoting nights, tax planning can slip. Leave it too late and you lose options. Make a few smart moves before 30 June and you can legally reduce taxable income, smooth cash flow and avoid the EOFY scramble.