Strategic Tax Planning:
How Well are you
Really Doing it?

Effectively managing your business finances isn’t about ticking boxes in June. It requires informed decisions throughout the year that directly impact your cash flow and financial position. Many Australian businesses miss out on key opportunities, not because they lack intent, but because planning starts too late. So, where do you stand?

While several long-term strategies support effective tax planning for your business, here’s a quick litmus test to see if you have the basics right. If you have already planned and implemented some or all of the steps, you are on track to make tax work as a strategic lever, not just an end-of-the-year compliance task.

Selling part or all of your business can mark a significant milestone, but it also brings complex tax issues. The Small Business CGT Concessions offer considerable relief. We often find that these concessions are only considered after a deal is already underway, when it may be too late to restructure or qualify. Planning ahead, even by a few months, can open up substantial benefits and protect the long-term value you’ve created.

Benefits provided in addition to salary, such as entertainment, vehicle, or allowances, may be subject to Fringe Benefits Tax if not planned properly. Planning ahead allows you to identify which benefits fall under FBT, apply relevant exemptions and ensure accurate reporting. When managed well, these benefits can be part of a broader remuneration strategy for both you and your employees, while minimising tax liabilities.

GST obligations are often seen as routine compliance rather than a planning point. Incorrectly classified supplies, delayed BAS returns, or failing to account for changes in business structure can create unnecessary exposure. Planning helps confirm whether transactions are taxable or input-taxed, identify where credits may be missed especially in respect of purchases and sales of business and equipment , and avoid errors that carry financial risk.

Discretionary trusts offer tax flexibility, but only if distributions are planned early. Leaving trust distribution decisions to the final days of June can result in suboptimal outcomes or non-compliant resolutions. Minimise tax and keep the trust compliant, practical, and fit for purpose.

Many business owners and directors extract funds from the company throughout the year via shareholder loans. However, without early planning, those drawings may be treated as unfranked dividends under Division 7A, creating unexpected personal tax liabilities.

Creating compliant loan agreements, structured repayments, or timely dividend decisions can help minimise overall tax impact.

Instant asset write-off measures can offer significant tax benefits for businesses investing in equipment, vehicles, and other depreciating assets. With the right structure, the right investment at the right time can provide operational value and a meaningful tax benefit.

So how did you do?

You would have realised that these are not decisions to be made under pressure in the final weeks of June. At Unite Advisory, we support business owners in making these calls early, when timing can influence outcomes and the strategy can still be shaped. Our team helps you identify and implement tax-effective strategies tailored to your goals.

Get in touch, and one of our accountants will walk you through the next steps to effectively plan your taxes.