The financial year has ended. If you’re a small business owner or sole trader, the next few months are your best window to reduce your tax bill — legitimately.
Here are 5 strategies I use with my clients every year.
1. Defer Invoicing by One Day#
If you invoice on June 30, that income lands this financial year. Invoice on July 1, and it lands next year.
Simple. Legal. Effective.
2. Pre-pay Business Expenses#
Got a software subscription, insurance premium, or lease payment coming up? Pay it before June 30 and claim the deduction this year.
3. Review Your Asset Register#
Assets under $20,000 can be instantly written off under the instant asset write-off (temporary full expensing).
That new laptop, phone, or piece of equipment you’ve been meaning to buy? Now’s the time.
4. Top Up Super#
Personal super contributions are tax deductible up to $30,000 per year (including the 11.5% employer guarantee).
Even a small top-up reduces your taxable income and grows your retirement savings.
5. Write Off Bad Debts#
Chasing unpaid invoices that you’ll never collect? Write them off. It’s a legitimate deduction.
These strategies are general in nature. Always speak to your accountant (or me!) before making decisions.