The Importance of Tax Planning - Why proactive strategies today can make a meaningful difference tomorrow

Written by Daniel Dubois

For many people, tax is something that only gets attention at end of the financial year. However effective tax planning isn’t about last-minute deductions - it’s about making smart, forward-looking decisions that can improve your overall financial position.

Put simply, good tax planning means keeping more of what you earn, while staying fully compliant.

It’s more than just tax returns

A tax return reports what has already happened. Tax planning, on the other hand, focuses on what you can still control.

This can include:

  • Structuring your investments tax-effectively

  • Timing income and expenses strategically

  • Reviewing superannuation contributions

  • Managing capital gains and losses

  • Ensuring you’re not overpaying due to outdated strategies

Without a plan, opportunities are often missed and over time, that can add up to a significant cost.

Key tax planning issues before 30 June 2026

As the 2026 financial year draws to a close, tax planning is less about last‑minute deductions and more about navigating structural changes, tighter compliance and cash‑flow impacts. With Stage 3 tax cuts now embedded, superannuation rules increasingly more complex, payday super commencing from 1 July 2026 and continued ATO scrutiny of private groups, proactive planning before 30 June is critical to avoid missed opportunities, cash‑flow shocks and compliance risks in the year ahead.

Summary of key issues

  • Stage 3 tax cuts
    Updated personal tax brackets for the FY26 year broaden the 30% marginal rate to $135,000, changing the relative value of deductions and making income‑timing and management of tax brackets more important, especially for higher earners.

  • Superannuation planning
    The concessional contributions cap remains at $30,000 for FY 2026, with careful planning needed to optimise contributions, utilise carry‑forward caps and manage Division 293 tax exposure. The implications of higher Superannuation Taxes for larger SMSF’s under Division 296 should also be considered where appropriate.

  • Transition to payday super from 1 July 2026 (cash‑flow impact)
    From 1 July 2026 employers must pay super within seven business days of payday, increasing payroll funding frequency.  Although Superannuation going forward will be less of a large impost, businesses should prepare now for tighter cash‑flow cycles.

  • Instant Asset Write‑Off
    Further to a late announcement on 4th April, eligible small businesses can continue to deduct assets costing under $20,000, provided they are installed and ready for use by 30 June 2026.  This makes the timing of ordering and installation crucial.

  • Division 7A

    Repayments on shareholder loans must be made:

  • by the due date for lodgement of FY25 tax returns (usually 15 May) to avoid the creation of Division 7A loans with a special note to ensure FY25 year family trust distributions are physically paid to companies where needed; or

  • 30 June for existing Division 7A to avoid deemed unfranked dividends 

This an area of increasing ATO scrutiny.

  • Trust resolutions
    Trust distribution resolutions must be validly executed by 30 June 2026 to avoid default taxation at the top marginal rate.

  • ATO compliance focus
    Expanded ATO funding is driving deeper data‑matching and enforcement, particularly for trusts, private companies, superannuation and unpaid tax debts.

  • CGT planning
    Strategic timing of asset disposals and use of capital losses remains essential to manage taxable income and access the 50% CGT discount where eligible.

Don’t leave it too late

With ongoing changes to tax rules, superannuation caps, and investment markets, what worked last year may not be the most effective approach this year.

EOFY is a key window, however the best outcomes are achieved from planning before deadlines - not reacting to them.

Whether you’re a business owner, investor or employee a tailored strategy can help you:

  • Reduce unnecessary tax

  • Improve cash flow

  • Build wealth more efficiently

  • Align your tax position with your long-term goals

Waiting until June often limits what can actually be done. The earlier you act, the more options you have and the greater the potential benefit.

Are you ready to take control of your tax strategy?

Now is the ideal time to review your 2026 tax planning and map out your key action items before deadlines approach.

Book a meeting with our team today to explore opportunities specific to your situation and ensure you’re making the most of the year ahead.

Jenni Anderson