EOFY 2026 Tax Planning Guide

What growing businesses and high net wealth individuals need to do before 30 June.

Craig Hailston  |  Principal, Hailston & Co Chartered Accountants

Tax planning is not a once-a-year event you hand off to your accountant in July. It's the decisions you make before 30 June that determine what you actually pay. The difference between a good year and a great year — from a tax perspective — is often measured in weeks of lead time, not years of complexity.

This guide is written for two audiences: business owners running growing companies, and high net wealth individuals who want to make every dollar of their structure work harder. We've updated it for the 2026 financial year, including the significant legislative changes now confirmed — Division 296, the Federal Budget announcements, and the ATO's evolving compliance focus areas.

The strategies here are legal, practical, and time-sensitive. Most require action before 30 June. Some require action now.

Key deadlines — don't let these slip past you

• Trust distribution resolutions must be signed and dated before 30 June 2026
• Super contributions must be received by your fund before 30 June — allow 5–7 business days
• Unused concessional caps from FY2021 expire permanently on 30 June 2026
• Assets must be installed and in use by 30 June to claim the instant write-off this year
• Minimum pension payments from account-based pensions must be drawn before 30 June

Part One: Tax Planning for Business Owners

Whether you operate through a company, trust, or as a sole trader, the strategies below represent the most impactful actions available to you before the financial year closes.

1. Get your tax position on paper before you do anything else

Before prepaying expenses, making super contributions, or purchasing assets, you need a clear estimate of your likely taxable income to 30 June. Without this, you're optimising in the dark.

A proper tax planning conversation with HCO starts with year-to-date profit across all entities, a projection to 30 June, and an estimate of your consolidated tax liability. That number — not a gut feel — should drive the strategies that follow.

This is the step most business owners skip. It's also the most valuable.

2. Prepay deductible expenses before 30 June

Paying eligible expenses before 30 June brings the deduction forward into this financial year, reducing your taxable income now rather than next year. Under the 12-month prepayment rule, you can prepay expenses with a service period that doesn't extend beyond 30 June 2027.

Common expenses worth prepaying include:

• Business insurance premiums
• Rent on business premises
• Interest on business loans
• Software subscriptions and professional memberships
• Lease payments and service contracts

3. Instant asset write-off — $20,000 threshold, this year and beyond

If your business has aggregated turnover under $10 million, you can immediately deduct the full cost of eligible business assets costing less than $20,000, provided the asset is first used or installed ready for use by 30 June 2026.

What you need to know

• Each asset is assessed individually — not bundled — against the $20,000 threshold
• The business must opt in to the simplified depreciation rules
• The car depreciation cost limit is $69,674 for FY2026
• Private use must be excluded — only the business-use portion is deductible
• From 1 July 2026, the $20,000 write-off will be permanently legislated (Federal Budget announcement — not yet law)

Buy what your business genuinely needs. Assets purchased purely for a tax deduction — without genuine business purpose — don't pass muster with the ATO and won't pass ours either.

4. Review your debtors and stock before year end

Two areas that business owners regularly miss:

Bad debts

If you have invoices that are genuinely uncollectable, they must be formally written off in your accounting system before 30 June to claim the deduction in FY2026. A debt can't be bad at 1 July and backdated — it must be actioned before the year closes.

Stock write-downs

Slow-moving, damaged, or obsolete stock should be written down to its net realisable value before year end. The lower of cost or NRV is the correct basis, and the write-down reduces your assessable income for the year.

5. Superannuation — the most valuable deduction in your business

Employer super contributions are deductible in the year they are received by the super fund — not the year they are accrued or paid from your account. To claim the deduction in FY2026, the contribution must clear your employees' super funds before 30 June.

Allow 5–7 business days. If you leave it to 27 or 28 June, you're taking a risk.

This applies to your own super contributions as a business owner as well. If you've underpaid your own super through the year, now is the time to catch up — within the $30,000 concessional cap (see Part Two for more detail).

6. Trust distribution resolutions — the one that cannot be missed

If your business or investment affairs operate through a discretionary trust, the trustee must formally decide how income will be distributed before 30 June 2026. This decision must be documented in writing — a trustee resolution, minute, or formal record — and signed before midnight on 30 June.

Fail to do this, and the ATO will assess the entire undistributed trust income at the top marginal rate of 47%.

What the ATO is watching in 2026

• Section 100A — arrangements where income is distributed to one beneficiary but the economic benefit flows to another (e.g. income distributed to an adult child but banked by a parent). If this applies, the ATO may tax it at 47% in the hands of the trustee.
• Distributions to adult children, companies, and non-residents are under heightened review
• When distributing to a bucket company, trustees must consider Division 7A consequences — UPEs owing to the company must be managed before the company's lodgement day
• Division 7A benchmark interest rate is 8.37% for FY2026

Trust compliance is genuinely complex in 2026. This is not the year to manage it without professional advice.

7. Defer income into the next financial year where appropriate

If your business has received deposits or prepayments for goods or services not yet delivered, you may be able to defer recognition of that income into FY2027. This requires the right accounting treatment and documentation — it is not simply a matter of delaying an invoice.

For business owners approaching a lower-income year in FY2027 (for example, a planned maternity leave, reduced hours, or anticipated downturn), deferring income and accelerating deductions can make a meaningful difference.

8. Loss carry-back — coming in FY2026-27

The Federal Budget confirmed that loss carry-back will be reintroduced from the 2026-27 financial year. Eligible companies making a loss will be able to apply that loss against tax paid in the prior two years, generating a cash refund.

While this applies from next year, the implication for planning now is clear: capital expenditure timing, entity structure, and income deferral decisions made this year will affect whether and how much you benefit from this measure.

Part Two: Tax Planning for High Net Wealth Individuals

For individuals with significant income, investment assets, and superannuation balances, 2026 is a year of genuine structural change. Two major legislative shifts — Division 296 super tax and the upcoming discretionary trust minimum tax — require careful planning well before 30 June.

9. Superannuation contributions — still the most powerful tool available

Superannuation continues to be the most tax-effective savings and investment structure for most Australians. Concessional contributions are taxed at 15% inside the fund — far below the 37% or 45% you'd pay on the same income at the top marginal rates.

Concessional (pre-tax) contributions

The concessional cap is $30,000 for FY2026, increasing to $32,500 from 1 July 2026. This includes employer contributions and any salary sacrifice. Personal concessional contributions are tax deductible — but the fund must receive the payment by 30 June.

Carry-forward contributions — FY2021 caps expire permanently

If your total super balance (TSB) was below $500,000 at 30 June 2025, you may be able to use unused concessional cap space from prior years. Critically, unused caps from FY2021 expire permanently on 30 June 2026. If you have them and haven't used them, this is a one-time opportunity — it cannot be recovered after 30 June.

Non-concessional (after-tax) contributions

The non-concessional cap is $120,000 for FY2026. If you are under 75 and your TSB is below $1.9 million, you may be able to bring forward up to three years of contributions ($360,000) in a single year. Speak with us before triggering the bring-forward — it has lasting structural implications.

Super contribution checklist — act before 30 June

• Check total employer SG contributions received year-to-date against your $30,000 cap
• Calculate any carry-forward cap space available (FY2021 expires permanently 30 June 2026)
• Personal concessional contributions: notify your fund with the correct deduction notice
• Ensure all contributions clear the fund before 30 June — allow processing time
• If your TSB is approaching $3M, read Strategy 10 before contributing further
• If drawing a pension from super, ensure minimum payments are completed before 30 June

10. Division 296 — the super tax above $3M is now law

Division 296 is no longer a proposal. The legislation received Royal Assent on 13 March 2026 and takes effect from 1 July 2026. If your total superannuation balance at year end exceeds $3 million, additional tax will apply to the proportion of earnings attributable to the balance above that threshold.

Element	What it means
Earnings on $3M–$10M portion	30% effective tax rate (additional 15%)
Earnings above $10M	40% effective tax rate (additional 25%)
Who pays it	The individual — assessed personally, not the fund
When first payable	FY2026–27 assessments issued in 2027–28
Can be paid from super	Yes — the individual may elect to pay from their fund balance
SMSF with illiquid assets	Liquidity plan required — this is an annual ongoing obligation

The spousal risk most couples miss

A couple with $2.5M each in super has no Division 296 exposure individually. But on the first death, if the survivor inherits via reversionary pension, the surviving spouse's balance becomes $5M — creating immediate exposure. This is one of the most commonly overlooked risks in estate planning for high net worth families.

Should you withdraw from super?

Withdrawal is not automatically the right answer. Super still outperforms most alternatives in long-run modelling — particularly when pension-phase capital gains tax exemption is factored in. The question is not whether to stay in super, but how to hold assets within it. A blended strategy (partial withdrawal into a bond, company, or direct structure) often produces better outcomes than full exit.

This is precisely the kind of modelling we do for clients. Don't act on Division 296 without running the numbers.

CGT cost base reset — action required before 30 June 2026

There is a transitional measure that allows SMSF members to reset the capital gains tax cost base of assets held in the fund at 30 June 2026 — effectively locking in the current market value as the base for future Division 296 calculations. This is not automatic. It requires action before 30 June 2026 and will benefit most SMSF members who will be subject to Division 296.

11. Capital gains — the timing decision that costs nothing to get right

Capital gains are taxed in the year a sale contract is entered into — not settlement. That distinction matters a great deal this time of year.

If you are planning to sell an asset with a significant unrealised gain, consider whether waiting until 1 July shifts the tax liability into FY2027 — and whether your income position next year makes that advantageous.

Conversely, if you have crystallised capital losses this year, review your portfolio before 30 June to identify assets where realising a gain now would be absorbed by those losses. Unused capital losses carry forward indefinitely but cannot be allocated against ordinary income.

CGT planning reminders

• The 50% CGT discount applies to assets held more than 12 months — by individuals and trusts, not companies
• The Federal Budget proposes changes to negative gearing and CGT for established properties purchased after 13 May 2026 — speak with us before acting on investment property decisions
• For assets held in trusts, CGT streaming rules allow capital gains to be allocated to specific beneficiaries — this requires the right trust deed and careful planning

12. Investment property — get every deduction you're entitled to

Investment property owners should review deductions before lodging. The line between repairs (fully deductible in the year incurred) and capital improvements (depreciable over time) is one of the most litigated areas in property tax. Get it wrong and you either overclaim now or underclaim for years.

Make sure the following are documented and captured:

• Interest on investment loans — confirm the loan hasn't been redrawn for private purposes
• Property management fees, council rates, water charges, insurance
• Repairs and maintenance — document what was done and why it was maintenance rather than improvement
• Depreciation schedules — if you don't have a quantity surveyor's report, it may be worth commissioning one
• Travel to inspect the property — no longer deductible for residential rental properties

13. The structural change you need to plan for now — trust minimum tax from 2028

The 2026 Federal Budget announced a 30% minimum tax on income distributed through discretionary trusts, taking effect from 1 July 2028. While this is two years away, it represents the most significant change to trust tax planning in a generation — and restructuring takes time.

What the proposed trust minimum tax means in practice

• 30% minimum tax applied at the trust level — not the beneficiary level
• Non-corporate beneficiaries receive a non-refundable tax credit for tax paid at the trust level
• Corporate beneficiaries (bucket companies) receive no credit — the rate advantage disappears entirely
• Income splitting to low-income beneficiaries is still possible but tax benefit is significantly reduced
• Carve-outs: primary production trusts, fixed trusts, SMSFs, special disability trusts
• Testamentary trusts in existence at Budget night (12 May 2026) are protected
• Effective date: 1 July 2028 — but trust deeds, entity structures, and income flow arrangements take time to review and restructure

If your wealth structure relies heavily on discretionary trust distributions to minimise tax — including bucket company arrangements — now is the time to model what your tax position looks like under the new rules and what alternatives exist.

This is a planning conversation, not an emergency. But it requires starting now.

Part Three: Your Pre-30 June Checklist

Use this as a practical prompt for your conversation with your HCO advisor. Tick off what's done, flag what needs attention.

Action Item	Timing
Trust distribution resolutions signed and dated	Before 30 June — non-negotiable
Employer super contributions cleared by fund	Allow 5–7 business days from payment
Personal concessional super contributions lodged	Fund must receive by 30 June
Carry-forward super caps reviewed (FY2021 expires)	Last chance — expires 30 June 2026
Non-concessional contributions considered	Check TSB and bring-forward eligibility
Instant asset write-off assets in use	Asset installed and in use before 30 June
12-month prepaid expenses paid	Paid before 30 June
Bad debts written off in accounting system	Must be actioned before 30 June
Stock write-down to NRV completed	Stocktake and journal before 30 June
Division 7A loan minimum repayments confirmed	By company lodgement day
Minimum pension payments drawn	Drawn before 30 June
CGT cost base reset (SMSF — Division 296)	Action required before 30 June 2026
Division 296 modelling completed (if TSB near $3M)	Before 1 July 2026
Capital gain/loss review of investment portfolio	Before 30 June
Trust structure review (2028 minimum tax)	Begin now — don't wait until 2027

A Final Word from Craig

The clients who come out of every financial year in the best position aren't the ones who react fastest in June — they're the ones who planned in March, April, and May. Tax planning is a year-round discipline. At its best, it's integrated with your business strategy, your investment decisions, and your long-term wealth goals.

There is still time to act — but the window is closing.

Book your EOFY tax planning meeting

Still time to act — but you need to move now. Contact your HCO advisor today.

Camden  |  Wollongong  |  Sydney  |  This email address is being protected from spambots. You need JavaScript enabled to view it.  |  hailstonco.com.au

Disclaimer: This publication contains general information only and does not constitute taxation, financial, or legal advice. Individual circumstances vary significantly. You should seek specific advice from a registered tax agent, financial adviser, or legal practitioner before acting on any strategy in this guide. Information is current as at June 2026 and is based on legislation and ATO guidance at that date. Some Federal Budget announcements referenced are not yet law and may change. Hailston & Co Chartered Accountants Pty Ltd. ABN [33 631 533 429].