There are very few meetings in a year that can directly put money back into your pocket. A tax planning meeting is one of them.
Most business owners work incredibly hard all year, managing staff, looking after customers, solving problems, growing the business, and then tax time comes around and it can feel like the result is already decided. The tax bill arrives and the question is almost always the same:
“Is there anything we can do to reduce this?”
It’s a fair question. But the truth is, by the time the financial year has ended, most of the opportunities are already gone.
Tax planning is not something that happens after 30 June.
Tax planning is what happens before June so you can influence the outcome, not just accept it.
It’s about sitting down before year end, looking at where your profit is likely to land, and making strategic decisions while there is still time to do something about it. Decisions around super contributions, equipment purchases, trust distributions, dividends, wages, and director loans can all significantly change the final tax position, but only if they are planned before the year ends.
If you want to legally minimise tax, manage your cash flow properly, plan your trust distributions correctly, and avoid Div 7A problems, tax planning is not optional, it is essential.
Why Tax Planning Must Happen Before Year End
Tax planning is really about one simple thing, making decisions while you still have time to make them.
Because once 30 June passes, the financial year is finished and most of the decisions that affect your tax position are locked in. There are a lot of things that simply cannot be changed after year end.
For example, after 30 June you generally cannot:
- Change trust distributions
- Decide who receives income from a family trust
- Backdate super contributions
- Purchase assets and claim depreciation for that year
- Adjust wages, bonuses or dividends for that year
- Properly manage Div 7A director loans
- Write off bad debts or obsolete stock
- Time income and expenses strategically
All of these things can make a significant difference to the amount of tax you pay, but only if they are done before the end of the financial year.
After year end, we are no longer planning.
We are simply reporting what has already happened.
Tax planning is proactive.
Tax returns are reactive.
The business owners who feel in control of their tax and their numbers are the ones who plan before year end. The business owners who don’t plan often feel like the result just happens to them.
Tax planning is really about staying in control, making decisions early, and making sure you are not paying more tax than you legally need to.
What Happens in a Tax Planning Session
A proper tax planning session is not just estimating tax.
It is about building a strategy before year end so you can legally minimise tax and make smart financial decisions.
During a tax planning session, your financial position is reviewed, and different scenarios are modelled to determine the most tax-effective outcome.
This typically includes:
Profit Estimate
Your expected profit for the year is calculated so we can estimate tax before 30 June instead of after.
Business Structure Review
Companies, trusts, and individuals are reviewed to ensure income is being distributed in the most tax-effective way.
Trust Distributions
If you operate through a family trust, distributions must be decided before 30 June. This is critical and cannot be done after year end.
Div 7A Director Loans
If you owe money to your company, a plan can be created to eliminate or manage the loan and avoid deemed dividends and unexpected personal tax.
Super Contributions
Additional super contributions may be used to reduce taxable income and build long-term wealth.
Asset Purchases
Equipment or vehicles may be purchased before year end to claim depreciation or instant asset write-offs (subject to current rules).
Wages, Bonuses and Dividends
Income can be structured across companies, trusts, and individuals to achieve the best tax outcome.
Timing of Income and Expenses
In some cases, income can be deferred or expenses brought forward to manage taxable income.
After your tax planning session, you will receive a clear tax planning report outlining the strategies discussed, the actions to be completed before 30 June, and the estimated tax savings from each strategy if implemented, so you know exactly what to do and why.
A Simple Example of the Impact of Tax Planning
Let’s look at a simple example.
Two business owners earn exactly the same profit.
Same revenue, same expenses, same profit.
But one of them does tax planning before year end, and the other doesn’t.
The business owner who plans sits down before 30 June and makes some strategic decisions. They might distribute trust income in the most tax-effective way, make additional super contributions, purchase equipment the business already needs before year end, reduce their Div 7A loan, plan dividends and wages properly, and make sure their cash flow and tax payable are under control.
The business owner who doesn’t plan usually just keeps working, hoping tax won’t be too bad, and deals with it after the year ends. They often end up paying tax at higher rates than necessary, miss super opportunities, watch their director loan grow without a plan, get surprise tax bills, and generally feel like they’re not fully in control of their numbers.
The interesting part is this:
The difference is not how much they earn.
The difference is that one planned and one didn’t.
Tax planning is one of the most powerful tools business owners have to build wealth, reduce unnecessary tax, and stay in control of their business instead of feeling like the numbers are controlling them.
Quick Action Steps Before 30 June
If you are a business owner, these are important steps to take before year end:
- Make sure your bookkeeping is up to date
- Estimate your profit before year end
- Review any Div 7A director loans
- If you have a trust, plan your distributions before 30 June
- Consider super contributions
- Consider asset or equipment purchases if needed
- Book a tax planning meeting before June
- Ensure trust distribution minutes are prepared before 30 June
These steps alone can save significant tax and prevent major problems later.
Tax Planning Is Not a Cost — It Is an Investment
Tax planning is not something every client needs every year, but for many business owners it is one of the highest value services they receive.
If you have a family trust, you should be doing tax planning before year end so trust distributions are decided properly.
If you have a Div 7A director loan, you should have a plan to reduce or eliminate that loan over time.
If your business is making a profit, you should strongly consider tax planning each year so you are not paying more tax than necessary.
Tax planning is really about much more than just reducing tax for one year. It’s about stepping back before the year ends and making smart decisions about your business and your finances.
It helps you:
- Minimise tax legally
- Avoid surprise tax bills
- Plan your cash flow
- Structure your income correctly
- Manage director loans properly
- Build wealth over time
- Stay in control of your business and your numbers
It is not just about tax.
It is about building a financially unshakeable business.
Final Thoughts
One of the biggest mistakes business owners make is waiting until after the end of the financial year and then asking what can be done to reduce the tax bill.
By then, the answer is usually nothing.
The business owners who build wealth, manage their tax properly, and feel in control of their numbers are not the ones who wait until tax time. They are the ones who sit down before the year ends, look at their numbers, and make deliberate decisions about what they want the outcome to be.
Tax planning is not just another accounting service that ticks a box at the end of the year. It is one of the most important financial decisions you will make each year, because it gives you the opportunity to influence the result instead of just accepting it.
And over time, those decisions, made year after year, are what really build wealth and create financially unshakeable businesses.
Call to Action
If you would like to book a tax planning session before 30 June, please contact our office and we can schedule a time to go through your numbers and options before year end.
We are very confident in the value of tax planning because we see the difference it makes every year. When planning is done properly, it gives you clarity, control, and usually a significantly better tax outcome than if nothing was done at all.
That’s why we offer a simple guarantee.
If we don’t save you at least double the cost of the tax planning session, we will do the tax planning for free.
We offer this because tax planning, when done properly, should never be a cost. It should be an investment that pays for itself and often many times over.
More importantly, it gives you a clear plan before year end, removes the uncertainty around tax, and helps you make confident financial decisions before the year is locked in.
If you want to stay in control of your tax, your cash flow, and your business, tax planning before 30 June is one of the most important steps you can take each year.
By Suzanne Walker
Tax Planning FAQs
What happens if trust distributions are not decided before 30 June?
If trust distributions are not resolved before 30 June, the trust income may be taxed at the top marginal tax rate, which is currently 47% including Medicare levy. This happens because the trustee is assessed on the income if no valid distribution resolution is made. This is why tax planning before year end is critical for family trusts. Distributions must be decided and documented before 30 June.
How does tax planning help with Div 7A director loans?
If a director owes money to their company, this is usually treated as a Div 7A loan. If it is not managed correctly, the ATO can treat the loan as a deemed dividend, meaning the director pays personal tax on that amount without actually receiving cash.
During tax planning, we can create a strategy to reduce or eliminate the Div 7A loan. This may involve:
- Declaring dividends
- Paying bonuses
- Using trust distributions
- Making repayments
- Restructuring the loan correctly
Planning this before year end is extremely important to avoid unexpected personal tax.
Can tax planning help with cash flow as well as tax?
Yes, and this is one of the most overlooked benefits of tax planning. Tax planning allows you to estimate your tax payable before year end so you can plan for it, rather than being surprised later. It also allows you to structure dividends, super contributions, and loan repayments in a way that manages both tax and cash flow together.
Good tax planning is not just about reducing tax, it is about managing tax, cash flow, and structure together.
Do I need to prepare anything for a tax planning meeting?
In most cases, no. We prepare the tax planning calculations and scenarios before the meeting so the time together can be spent discussing strategy and making decisions, not gathering information.
The main thing you need to ensure is that your bookkeeping is up to date so the numbers we are working with are accurate.
Before the meeting, we prepare all the calculations, review your structure and tax position, and model different scenarios so the meeting can focus on strategy and decision-making.
Then during the meeting, we walk through the options, explain the strategies, and agree on a clear plan to implement before 30 June.
The goal of the meeting is that you walk away with clarity, a plan, and confidence that your tax position has been properly managed before year end.
How much tax can tax planning actually save?
This depends on the business, structure, and profit level, but tax planning can often save thousands or even tens of thousands of dollars by:
- Distributing income correctly through trusts
- Making super contributions
- Timing income and expenses
- Managing Div 7A loans
- Planning dividends and wages
- Claiming depreciation on asset purchases
More importantly, tax planning and business advisory services help avoid costly mistakes and keeps business owners in control of their financial position.
