How Smart Tax Planning Before 30 June Saved One Client Over $20,000 in Tax

How Smart Tax Planning Before 30 June Saved One Client Over $20,000 in Tax

As we edge closer to the end of the financial year, tax planning becomes more than just a compliance requirement—it’s a real opportunity to maximise savings and boost your long-term financial position.

At SKD Accountants, we’re passionate about helping clients make smart, strategic decisions. Here’s a real-life case study of how we helped a client save thousands in tax with some well-timed planning before 30 June.

The Client: Dual-Income Earner with a Capital Gain

Our client, Sarah*, had a unique tax scenario. She is a full-time employee earning a salary and also runs her own company, from which she draws a wage. In the 2025 financial year, Sarah sold an investment property and was looking at a capital gain of $300,000.

With EOFY approaching, she came to us for advice on how to legally minimise her tax liability. And we delivered.

The Strategy: Timing and Super Contributions

After carefully reviewing her financials and forecasted income, we implemented the following two-part tax planning strategy:

1. Maximising Superannuation Contributions

We advised Sarah to take advantage of the concessional superannuation contributions cap, which in her case allowed her to contribute up to $30,000 into her superannuation fund. Because this is a tax-deductible contribution, it directly reduced her assessable income, cutting down the tax payable on her capital gain significantly.

Not only did she save on tax, but she also grew her retirement savings—a win-win!

2. Delaying Company Income to the New Financial Year

Since Sarah controls her own company, we recommended she delay paying herself any further income until after 1 July 2025. This allowed her to shift income into the next financial year, keeping her taxable income lower in the current year and reducing the amount of income she has to pay at the highest marginal tax rate.

The Result: Over $20,000 in Tax Savings

By strategically structuring her income and utilising her full super cap, Sarah reduced her taxable income enough to save over $20,000 in tax. All legally and efficiently.

The Takeaway: Don’t Leave Tax Planning Too Late

Sarah’s case is a prime example of why early tax planning is essential. Waiting until after 30 June means you’ve missed the opportunity to take advantage of smart strategies like these.

If you’ve sold an asset, run a business, or have multiple income streams, now’s the time to plan. The earlier you act, the more options you have to minimise your tax.

*Name changed for privacy.

Want to find out how much tax you could save before 30 June?

Book your free 30-minute tax planning session with our team today. Let’s tailor a strategy that works for you and your goals.

 

Doncaster Office:

Daniel Thong
Chartered Accountant
Director

Phone number

+61 434 285 409

E-mail address

daniel@skdaccountants.com.au


Address

69 Ayr Street
Doncaster VIC 3108

Keilor Downs Office:

Tony Thong
Chartered Accountant
Director

Phone number

+61 433 704 405

E-mail address

tony@skdaccountants.com.au


Address

16 Kavanagh Crescent
Keilor Downs VIC 3038

What Is Tax Planning and Why It Matters

What Is Tax Planning and Why It Matters

As an accounting firm helping business owners stay financially healthy, one of the most common questions we hear is: “What is tax planning, and do I really need it?”

The short answer? Yes – and here’s why.

What Is Tax Planning?

Tax planning is the strategic organisation of your financial affairs to legally minimise your tax liability. It involves understanding current tax laws, leveraging available deductions, offsets, and structures, and making smart financial decisions throughout the year – not just at tax time.

Think of tax planning as your proactive financial roadmap. It helps you:

  • Reduce your tax burden

  • Boost your savings

  • Align your finances with short and long-term goals

  • Ensure compliance with the Australian Taxation Office (ATO)

Why Is Tax Planning Important?

In Australia, tax rules are complex and constantly changing. Without a plan, you could be missing out on significant savings and even risk facing penalties. Here’s why effective tax planning is essential:

1. Maximise Legal Tax Deductions

By keeping records and understanding what can be claimed, individuals and businesses can legally reduce taxable income. Whether it’s work-related expenses, super contributions, or business costs, every dollar counts.

2. Improve Cash Flow

When your tax liability is minimised, more of your hard-earned money stays in your pocket or in your business. Better cash flow means more flexibility, stability, and opportunity.

3. Make Smart Investment Decisions

Tax planning helps you make informed choices about investments, property, superannuation, and trusts. A tailored tax strategy considers your personal or business goals and recommends the most tax-effective path forward.

4. Avoid Unnecessary Penalties

Missing deadlines, incorrect reporting, or poor record-keeping can lead to ATO penalties. A good tax plan ensures you stay compliant and organised all year round.

5. Plan for the Future

From retirement to business succession, strategic tax planning ensures that your future is financially secure, and your tax outcomes are optimised.

Who Should Be Tax Planning?

  • Individuals with multiple income streams, investment properties, or freelance income

  • Small business owners looking to reduce costs and reinvest profits

  • Sole traders and contractors managing fluctuating income

  • High-income earners navigating tax thresholds and minimising obligations

  • Startups and growing companies needing structured tax strategies

How an Accountant Can Help With Tax Planning

While there are plenty of online tips and tools, nothing beats working with a qualified accountant who knows the ins and outs of the Australian tax system. We help you:

  • Identify legitimate tax-saving opportunities

  • Stay compliant with all ATO requirements

  • Make strategic decisions aligned with your life or business goals

  • Plan for upcoming changes, deadlines, or growth

Tax planning is not a one-off task — it’s a year-round strategy.

Ready to Start Saving on Tax?

If you’re tired of giving too much to the ATO and want peace of mind knowing your finances are optimised, we’re here to help. Our personalised tax planning services are designed to deliver real savings and practical advice tailored to your situation.

Book a free consultation today and take the first step toward smarter tax outcomes.

ATO to Deny Deductions for Interest on Late Tax Payments from 1 July 2025 – What It Means for You

ATO to Deny Deductions for Interest on Late Tax Payments from 1 July 2025 – What It Means for You

The ATO has announced a significant change that will affect many Australian businesses and individuals from 1 July 2025. Under the new rule, interest charged by the ATO on overdue tax debts will no longer be tax-deductible.

This is a big shift — especially for small business owners who often use short-term deferrals as a way to manage cash flow. If you’ve previously relied on claiming interest on late tax payments as a deduction, this change could increase your out-of-pocket costs. Here’s what you need to know and how you can prepare.

What’s Changing?

At the moment, if you’re late in paying your tax — whether it’s BAS, PAYG, superannuation, or income tax — the ATO charges interest on the amount owing. That interest, known as the General Interest Charge (GIC) or Shortfall Interest Charge (SIC), is generally tax-deductible for businesses or individuals running a business.

But from 1 July 2025, that will no longer be the case. The government has confirmed that interest on unpaid ATO debts will no longer be a deductible expense.

Why This Matters

While interest charges from the ATO aren’t usually high compared to commercial lending rates, the ability to claim them as a tax deduction helps to reduce their sting. Losing this deduction will increase the real cost of any tax paid late.

This is especially important for:

Small and medium businesses who use ATO payment deferrals as part of cash flow management

Property investors and sole traders with variable income who sometimes fall behind on payments

Taxpayers in payment plans who have previously factored in deductibility of interest when budgeting

Why the ATO Is Making This Change

The ATO is trying to curb the practice of using unpaid tax bills as a form of short-term finance. By removing the tax deductibility of interest, the ATO is signalling that late payment should be the exception, not a planning tool.

This change also aligns with the government’s broader efforts to improve compliance and reduce the tax debt gap.

How to Prepare Before 1 July 2025

Now is the time to rethink how you manage your tax obligations. Here are some practical steps that can help reduce your exposure to ATO interest charges:

  1. Pay on Time Wherever Possible

The best way to avoid ATO interest? Don’t incur it. Set up calendar reminders, automate payments, and talk to your accountant about expected payment dates so you’re not caught off guard.

  1. Build a Tax Buffer

Consider setting up a separate bank account to regularly set aside money for tax obligations — similar to a GST or tax provision account. This helps prevent the temptation to use that money elsewhere and puts you in a stronger position at tax time.

  1. Speak Up Early if You’re Struggling

If you’re likely to have trouble meeting a payment, reach out early. The ATO is more likely to offer flexible options or payment plans if you act before the due date.

  1. Compare Costs: ATO vs Commercial Credit

In some cases, using a business overdraft, short-term loan or line of credit might now be a better option than deferring tax payments, since commercial interest remains deductible — while ATO interest won’t be.

  1. Always Lodge On Time – Even If You Can’t Pay

Even if you can’t pay your tax in full, it’s important to lodge your returns on time. This avoids extra penalties and keeps you in a better position to negotiate with the ATO.

  1. Review Your Cash Flow Forecasts

Make time to review your cash flow with your accountant. Forecasting ahead lets you see potential pressure points in advance and plan accordingly.

From 1 July 2025, the tax system is getting a little less forgiving. Interest on late tax payments will no longer be deductible, which makes it more important than ever to stay on top of your tax obligations and avoid falling behind.

If you’re not sure how this change might affect you or your business, now’s the time to start the conversation. At SKD Accountants, we work closely with clients across Melbourne to stay ahead of tax changes, improve cash flow, and minimise unnecessary costs.

Need a second set of eyes on your tax planning strategy?

We’re here to help — get in touch for a free consultation.