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The Ultimate Guide to Tax Planning

  • Mar 30
  • 3 min read


Strategic Advice to Reduce Your ATO Bill for the 2025-26 Financial Year


As we navigate the 2025-26 financial year, small businesses in Sydney face a shifting landscape of ATO compliance. From the extension of the $20,000 asset write-off to the final legislated increase in Superannuation, proactive planning is no longer optional; it is essential for survival.


At Adenix Accounting, we believe that waiting until June 30 to see your accountant is too late. Here is your definitive guide to the 2026 tax season.


1. The $20,000 Instant Asset Write-Off (Extended!)


In a win for small business owners, the Australian Government has officially extended the $20,000 instant asset write-off through to 30 June 2026.


  • The Benefit: Small businesses with an aggregated turnover of less than $10 million can immediately deduct the full cost of eligible assets under $20,000.


  • The Strategy: This applies on a per-asset basis. You can purchase multiple pieces of equipment, tools, or technology, provided each is under $20,000.


  • Critical Timing: To claim this in your 2026 return, the asset must be first used or installed ready for use by midnight on June 30.


2.Superannuation Tax Planning (12% Milestone)


Effective 1 July 2025, the Super Guarantee (SG) rate increased to 12%. This is the final step in the current legislated increase.


  • Payment Deadline: For a super contribution to be tax-deductible in the 2025-26 year, it must be received by the fund by June 30.

  • Maximum Base: The maximum quarterly contribution base for 2025-26 is $62,500.


  • Compliance: With the ATO’s increased focus on Single Touch Payroll (STP), late payments are now flagged automatically. Ensure your cash flow is prepared for this 12% rate.


Infographic of 2025-2026 Australian Individual Income Tax Brackets and Company Tax Rates for Sydney Business Owners, including the $20,000 Instant Asset Write-Off and 12% Su
Related Resource: Learn how this affects your retirement strategy on our Self-Managed Super Fund (SMSF) Page.

3.  Division 7A Tax Planning (8.37% Benchmark Rate)


If you have a loan from your private company, you must be aware of the updated interest rates to avoid "deemed dividends."

  • 2025-26 Benchmark Rate: The rate has been set at 8.37% (a slight decrease from 8.77% in the previous year).


  • Your Action: Ensure your Minimum Yearly Repayments (MYR) are recalculated using the 8.37% rate before your 2026 lodgment. Failure to do so can result in the loan being taxed at your highest marginal rate without franking credits.


4. 2026 Company Tax Rates


Entity Category

Turnover Threshold

Tax Rate

Base Rate Entities

Under $50 Million

25%

Full Rate Entities

Over $50 Million

30%

Note: Your company must derive 80% or less of its income from passive sources (interest, rent, royalties) to qualify for the 25% rate.


5. Immediate Action Checklist for Sydney Businesses


  1. Review Prepayments: You can prepay up to 12 months of expenses (insurance, rent, subscriptions) before June 30 to pull the deduction into this year.

  2. Stocktake & Bad Debts: Perform a physical stocktake and write off obsolete stock or unrecoverable "bad debts" before 30 June 2026.

  3. Trust Resolutions: If you use a Family Trust, your distribution minutes must be signed by June 30.

  4. Working From Home: The ATO fixed-rate method remains at 70 cents per hour for 2026. Keep a contemporaneous diary of your hours to support your claim.


Let’s Secure Your Business Future


Tax planning is about more than just numbers; it’s about cash flow and growth. As your local Rockdale accountants, we are here to help you navigate these 2026 changes.



 
 
 

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