Strategic Tax Planning and Minimisation Opportunities

Start Planning Now to Reduce Your Tax Before 30 June 2026

Tax planning isn’t something to leave until the end of the financial year. When done early and strategically, it can help you legally minimise tax, improve cash flow, and avoid last‑minute surprises.

What you can and can’t claim depends on your income, employment or business structure, investment activities, and personal circumstances. That’s why strategic tax planning- rather than reactive tax returns, is essential.

By planning ahead and understanding opportunities to bring forward deductions or defer income, you can optimise your tax position for the 2025–26 financial year.

Below are some key tax minimisation strategies to consider and discuss with your advisor before 30 June 2026.

Key Tax Minimisation Strategies to Consider

1. Bring Forward Deductions:
• Individuals on higher marginal tax rates may benefit from bringing forward deductible expenses into the current financial year. This can reduce taxable income and deliver meaningful tax savings when structured correctly.

2. Super Contributions:
• If your total super balance is below $500,000, you may be eligible to use carry‑forward unused concessional contribution caps from prior years.

Explore opportunities to top up super through salary sacrifice. Doing so reduces taxable income, keeping you in a lower tax bracket, and the additional super contribution is taxed at just 15%.

3. Consider Novated Leases for Electric Vehicle Purchases
• Salary packaging an eligible electric or low‑emissions vehicle through a novated lease may offer tax advantages, including potential Fringe Benefits Tax (FBT) exemptions, subject to eligibility criteria and vehicle thresholds.

This can be a tax‑effective way to upgrade your vehicle while reducing taxable income; however, suitability depends on your circumstances and should be reviewed carefully.

4. Utilise Negative Gearing:
• Interest and other costs associated with income‑producing investments (such as rental properties or shares) may be deductible against assessable income.

Negative gearing can be an effective strategy for some taxpayers, particularly those on higher marginal tax rates, provided appropriate records are maintained. In most cases, the ATO requires records to be kept for five years from the date you lodge your tax return.

5. Maximise and Claim All Deductions in 2025/26 FY
• Ensure you are claiming all eligible deductions, including:

6. Postpone Income Collection (where applicable)
• For businesses reporting income on a cash basis, the timing of invoicing and debt collection may impact when income is taxed.

Amounts received after June 30 2026, may be assessable in the following financial year. This strategy should only be used where appropriate and after confirming your accounting method with your advisor.

7. Optimise Capital Gains Tax (CGT):
• Assets held for 12 months or more may qualify for the 50% CGT discount.

8. Increase Charitable Donations:
• Donations of money or property to eligible charities can generally be claimed as tax deductions. Consider making charitable contributions before June 30 2026, to maximise deductions in this current financial year.

9. Timing of Deductible Expenses:
• Certain deductible expenses, such as subscriptions, conferences, business travel expenses, and leases, can be prepaid, provided they relate to a period of 12 months or less, offering a tax-effective strategy.

Alternatively, if your taxable income in the next financial year is expected to fall into a higher tax bracket, it may be beneficial to delay certain deductible expenses until after June 30, 2026, where appropriate.

10. Delaying Taxable Events Where Possible
• Postponing taxable events that trigger additional income or capital gains until the next financial year may help lower your tax in this current year. This may include delaying:

• The sale of CGT assets
• Business asset disposals
• Retirement or exit events

Each situation is different, so timing decisions should be reviewed carefully.

How Morrows Can Help – Strategic Tax Planning Session

Each year, proactive tax planning can make a meaningful difference to your financial outcome.
By meeting with your Morrows Tax and Business advisor well before 30 June, we can:

• Identify opportunities to legally minimise tax
• Align business and personal tax strategies
• Manage compliance risks
• Plan ahead for upcoming tax changes

We invite you to complete the form below to book a Strategic Tax Planning Meeting to ensure your tax position is optimised and well‑structured for the year ahead.

Download our Tax Manimisation Guides

Our advisors have prepared two 2026 Tax Minimisation guides. These guides outline strategies to help reduce your personal or business tax bill this financial year.

Fill in your details below to gain access to these guides for free.