The 2026-27 Federal Budget, Part 10: Tax Planning for Small Business Owners Before 30 June 2026
- Zac Hayes
- May 31
- 6 min read
For a lot of business owners, this time of year feels stressful.
Everyone starts talking about tax planning, deductions, structures, superannuation, and deadlines.
And honestly, a lot of the advice online makes things sound far more complicated than they need to be.
So, let's simplify it.
At the end of the day, tax planning is not about chasing loopholes or trying to avoid tax.
Good tax planning is about making smarter decisions with the money your business already earns.
Because your business is not your wealth.
Your business is the thing producing the income that helps build your long-term wealth.
And after the 2026 Federal Budget changes, making smart decisions before 30 June has become even more important.
A note on timing: several of the Budget measures mentioned in this article are announced and not yet law. They are subject to legislation passing Parliament and the final design may change.
The Biggest Mistake Business Owners Make
A lot of business owners focus only on reducing tax.
But that mindset can lead to poor decisions.
For example:
• Buying things the business does not need
• Spending money purely for deductions
• Taking money out personally without a long-term plan
• Ignoring structures and retirement planning
Saving tax is important.
But keeping and growing wealth long term matters far more.
The goal is not just paying less tax this year.
The goal is building something sustainable for the future.
What Changed After the 2026 Budget?
The Budget announced major changes around:
• Trust taxation
• Capital gains tax
• Superannuation planning
• Investment structures
But interestingly, many of the key end of financial year strategies before 30 June 2026 are still the same.
The difference now is that planning matters much more because the rules are changing over the next few years.
Especially around:
• Trust distributions from 2028 onwards
• Capital gains tax changes from July 2027
• New superannuation rules
• Structuring strategies involving companies and share classes
For many business owners, this year is less about panic and more about getting organised early.
The Six Most Important Things Business Owners Should Review Before 30 June 2026
1. Review Your Super Contributions
Superannuation is still one of the most tax effective ways Australians can build long term wealth.
For many people, contributing additional money into super can:
• Reduce personal tax
• Build retirement wealth
• Create long term investment growth
For the 2026 financial year, the concessional contribution cap is:
• $30,000 per person
From 1 July 2026, the concessional cap is scheduled to rise to $32,500, which is worth factoring into the timing of larger one-off contributions.
Some people may also have unused contribution caps from previous years available.
But timing matters.
The contribution generally needs to reach the super fund before 30 June 2026.
Why This Matters More Now
The Division 296 tax applies from 1 July 2026 to super balances above $3 million, with a second threshold at $10 million for very large balances.
For most Australians, that is not an immediate concern.
But for higher wealth families, long term planning around super is becoming more important.
2. Stop Buying Things Just to "Save Tax"
This is one of the biggest myths in small business.
A lot of people think:
"If I spend money, I save tax."
But that is only partly true.
If you spend $10,000 unnecessarily just to save tax, you are still spending money you did not need to spend.
The better approach is this:
Only buy assets the business genuinely needs.
The Government announced in the 2026 Budget that the $20,000 instant asset write-off will be made permanent from 1 July 2026, removing the year-by-year uncertainty that has existed for some time.
For the current financial year, the existing $20,000 write-off is already law and applies to eligible assets installed and ready for use by 30 June 2026.
That means business owners can make calmer, smarter decisions instead of panic spending in June.
3. Review Bad Debts and Expenses
If customers genuinely owe money that is unlikely to be recovered, there may be an opportunity to write off those debts before 30 June.
Some business expenses may also be worth prepaying if they were going to be paid shortly after year end anyway.
Examples may include:
• Insurance
• Software subscriptions
• Professional memberships
• Vehicle registrations
This is less about "tax tricks" and more about proper timing and cash flow management.
The first three EOFY priorities are straightforward. The next three depend heavily on how your business is structured, what your trust does, and whether your Division 7A position is clean.
The Business and Wealth Collective's EOFY Strategy Session can help you walk through each of these before 30 June, in plain English, with practical actions tailored to your situation.
4. Review Trust Distributions Properly
For families using discretionary trusts, the annual trust distribution process is extremely important.
And after the Budget changes, it has become even more important.
Trust distribution decisions generally need to be documented before 30 June each year.
But the real issue is not just the paperwork.
The ATO is increasingly focused on whether the distributions genuinely reflect what happened in real life.
That means:
• The right beneficiaries need to receive the income
• The distributions need proper documentation
• The money should genuinely flow where intended
This is especially important because Section 100A remains a major focus area for the ATO.
5. Clean Up Any Division 7A Issues
This is an area many business owners accidentally ignore.
If your company has paid personal expenses, lent money to you, or carried unpaid amounts between entities, there may be Division 7A issues that need attention.
If handled incorrectly, those amounts can potentially become taxable dividends.
The key is making sure:
• Loans are properly documented
• Minimum repayments are made
• Existing balances are reviewed early
Leaving this until after year end can create expensive problems later.
6. Start Planning for the Bigger Changes Coming
This is probably the most important point.
The biggest opportunities after the Budget are not always the immediate deductions.
The biggest opportunities come from planning ahead properly.
Especially around:
• Future property sales
• Capital gains tax changes
• Trust restructuring
• Share class strategies
• Superannuation planning
• Asset protection
• Long term wealth structures
For many business owners, the next two to three years will involve updating structures that were originally built under older tax rules.
That does not mean panic.
It simply means planning earlier.
Why Structure Matters More Than Ever
One of the biggest things the Budget changed is the importance of structure.
A lot of business owners have good businesses but outdated setups.
For example:
• Sole trader structures
• Older trust structures
• Companies without proper share class planning
• Personal ownership of assets
• Poor separation between business risk and family wealth
Good structures are not just about reducing tax.
They are about:
• Protecting assets
• Creating flexibility
• Building retirement wealth
• Managing risk
• Supporting future investments
• Creating long term family wealth
The business earns the money.
The structure helps determine what happens to it next.
The Bigger Picture Most Business Owners Miss
A lot of people focus heavily on June every year.
But real wealth is usually built through:
• Long term planning
• Consistent investing
• Good structures
• Smart cash flow management
• Asset ownership
• Time
The business is simply the engine producing the income.
The long-term strategy is what turns that income into real wealth over decades.
A Simple EOFY Checklist
Before 30 June 2026, it is worth reviewing:
• Super contributions
• Trust distributions
• Division 7A balances
• Cash flow for the new Payday Super rules starting 1 July 2026
• Business expenses
• Bad debts
• Existing structures
• Long term investment plans
The earlier this happens, the more options usually exist.
If you are unsure whether your current setup, trust structure, company, super strategy or investment plan still makes sense after the new Budget changes, now is the right time to review it properly before 30 June.
Reserve your EOFY Strategy Session with The Business and Wealth Collective.
Final Thoughts
The 2026 Budget changed a lot of the long-term tax and structuring landscape.
But the fundamentals of good planning have not changed.
The business owners who usually create lasting wealth are not just focused on paying less tax this year.
They focus on:
• Protecting wealth
• Building strong structures
• Managing cash flow
• Planning ahead
• Investing long term
• Creating financial security for their family
That is what real tax planning is about.
Make Sure Your EOFY Strategy and Structure Still Work
Every business owner's situation is different. The right strategy depends on your business income, family situation, investments, retirement goals and long-term plans.
Reserve your EOFY Strategy Session with The Business and Wealth Collective before 30 June so you can move into the new financial year with confidence.
General Information Disclaimer
This article provides general information only and does not take into account your personal circumstances, objectives, financial situation, tax position or legal structure. It is not personal tax, financial, legal or investment advice.
The Federal Budget measures discussed in this article were announced on 12 May 2026 and many require legislation, regulations, ATO guidance or further program detail before they take effect. The final rules, eligibility criteria, thresholds, timing and practical outcomes may change.
Before making decisions about tax, superannuation, property, trusts, business structures, investments, asset sales or contributions, you should obtain advice based on your specific circumstances.
The Business & Wealth Collective can help you review your position and identify which areas may require further advice before EOFY.
Tax agent services within The Business & Wealth Collective are provided by Configured Business Solutions Pty Ltd (Tax Agent No. 26109304).
Comments