Planning Ahead: Why Tax Planning is Your Secret Weapon
By Ebonee Tomasini
January 2026
When tax time rolls around, most people think about the compliance side of things — lodging your tax returns, paying your tax bills, meeting deadlines and ticking boxes to stay on the right side of the tax office. But what if you could do more than just meet your obligations? What if you could take control and make tax work for you? That’s where tax planning comes in.
What is it?
Tax planning is about being prepared, not cutting corners or bending the rules. It’s about understanding where you sit financially and making smart choices now so you’re ready for when tax time arrives.
Think of it as a proactive approach that ensures you meet your obligations while making the most of every opportunity available to you.
Let’s be clear; tax planning is not tax avoidance. It’s about understanding the rules and using them legitimately to your advantage. When done well, tax planning provides confidence, clarity and greater control over your financial future.
Tax planning goes beyond compliance; it’s about strategy. It’s the process of looking ahead, anticipating changes and aligning your financial decisions with your goals. This might include planning for major purchases, structuring investments or considering the timing of income and expenses. By thinking strategically, you’re not reacting to tax rules — you’re putting yourself in a position to make informed decisions ahead of time and strengthen your overall financial position.
So why does it matter?
Tax planning gives you options and allows you to make deliberate decisions that can shape your long‑term financial position.
In some cases, tax planning can help reduce tax on a more permanent basis. This might include making the most of superannuation strategies, reviewing business structures or reviewing where income distributed to ensure it is taxed at the most complimentary tax rate.
In other situations, tax planning is about deferring or delaying tax, rather than eliminating it altogether. By carefully considering the timing of income and expenses, you may be able to push tax liabilities into a later period, giving you more time to hold onto cash for longer.
Tax planning can also be important where income levels matter — for example, where eligibility for certain entitlements, concessions or obligations depends on your taxable income. Planning ahead allows these thresholds to be considered before year‑end, rather than discovering issues after the fact.
Beyond the tax itself, a tax planning meeting is also a valuable opportunity to step back and look at the bigger picture. It’s a chance to review how the business is tracking, talk through future plans, and work through ideas or changes you may be considering — both for the business and for you personally.
Starting early gives you time to put the right strategies in place. By reviewing your current position and forecasting income, expenses and commitments, we can estimate your tax outcome before the year ends. This gives you the opportunity to make informed decisions, get organised well ahead of deadlines and avoid the stress of last‑minute preparation — setting you and your business up for the best possible result.
What can you do now?
Start by getting your foundations right. Making sure your data file is accurate and up to date isn’t just housekeeping — it sets the scene for effective tax planning. With reliable information on hand, your Accountant can forecast more accurately and give you a clearer picture of where you stand and what lies ahead.
Here are some practical steps you can take to set yourself up:
Ensure your data files are reconciled to the end of the last full month and ready for review.
Send through important documents such as new equipment invoices or finance documents before they get misplaced or forgotten.
Review your stock numbers to ensure they match reality.
Confirm upcoming expenses or commitments that may impact your tax position.
If you prepare your own budget, or work with a consultant on one, ensure it is finalised and provided to your accountant at least one week before your tax planning meeting.
Consider any major purchases or investments you’re planning before the end of the financial year and discuss the cost and timing with your accountant.
Check your accounts payable and receivable so you know what’s outstanding and can plan cash flow effectively.
These small steps now can make a big difference later.
What can we do to help?
We don’t just crunch numbers – we partner with you to understand your goals and tailor strategies that fit your situation. Whether it’s forecasting your tax position, identifying opportunities for deductions, we will help you make informed decisions that put you in control.
By starting early, we can explore every option available to minimise your tax liability and improve your cash flow. Tax planning creates confidence for the year ahead.
The sooner we start, the more options you’ll have and that’s something worth planning for.
PayDay Super: Are You Ready for the 2026 Changes?
From 1 July 2026, all employers must pay super on payday, no exceptions. That means super guarantee contributions will need to be made at the same time as employee wages, rather than quarterly.
Key changes to be aware of:
Super is now calculated at 12% of an employee’s qualifying earnings (QE)
Payments must reach the employee’s super fund within 7 business days
Applies to all employers, with limited extensions
It’s important to understand these changes and plan your systems now to stay compliant and avoid penalties.
Need help getting ready? Contact our team for tailored payroll and compliance support.
