2026 Tax Planning for Sydney Businesses

Tax planning is not something to leave until the return is already being prepared.

By then, the year has closed, the income has been earned, the expenses have been paid, and many of the useful decisions are already behind you. For a Sydney business owner, 2026 tax planning should focus on the year while there is still enough time to act sensibly.

That does not mean rushing out to spend money before 30 June.

It means reviewing profit, cash flow, GST, PAYG instalments, payroll, super, business structure, asset purchases, debts, director payments, trust distributions and upcoming decisions before the numbers become locked into the return.

I’m Rafal Slowinski, Director of Tax Accounting Group Pty Ltd. When I talk to clients about tax planning, I do not start with “what can we buy?” I start with the business position. What has the business earned? What cash is available? What obligations are coming up? What decisions are still open? What records are reliable enough to use?

That is how tax planning becomes useful rather than last-minute guesswork.

2026 Tax Planning Starts With The Current Numbers

The first step is not a list of deductions.

It is the current financial position.

A Sydney business owner may have healthy sales figures but still be carrying unpaid supplier bills, GST liabilities, payroll obligations, loan repayments, tax instalments, and owner drawings. The profit and loss report may show one story while the bank account feels like another.

Before I suggest any tax planning strategy, I want to understand whether the reports can be trusted.

• Are the bank accounts reconciled?
• Are sales recorded correctly?
• Are supplier bills up to date?
• Has GST been coded properly?
• Does payroll match the accounting file?
• Are asset purchases separated from normal expenses?
• Are director loans or owner drawings recorded clearly?
• Has the business changed since the last return?

If the records are messy, the tax plan is weak. You cannot make good planning decisions from numbers that do not reflect the business.

If the working file already feels unclear, my page on  small-business bookkeeping in Sydney explains how I review records before they become BAS or tax-return problems.

Profit Is Not The Same As Available Cash

One of the biggest tax planning mistakes is looking only at taxable profit.

A business can show profit and still feel short of cash.

That can happen when customers are slow to pay, GST has been collected but spent, PAYG instalments are due, super and wages are rising, stock has been purchased, loans are being repaid, or the owner has taken drawings without leaving enough aside for tax.

This is where tax planning and cash flow need to be read together.

A strategy that reduces tax but creates cash pressure may not be a good business decision. A large equipment purchase may produce a deduction, but if it drains the account before BAS, wages or rent are due, the business may be worse off in practical terms.

business.gov.au explains that a cash flow forecast estimates future sales and costs and helps a business understand whether there will be enough income to cover costs. Their  cash flow statement guide is a useful resource for business owners who need to better understand payment timing.

For Sydney businesses dealing with rent, staff costs, suppliers, tolls, finance, subscriptions and tax payments, cash flow planning should sit beside tax planning, not behind it.

If this is the pressure point, my page on  cash flow forecasting for small business in Sydney explains how I review the timing of money coming in and going out.

PAYG Instalments Should Not Be Ignored

PAYG instalments can surprise business owners when income changes.

The ATO uses PAYG instalments so businesses and individuals with business or investment income can prepay tax during the year. The instalment amount or rate is generally based on prior tax information, so it may not always perfectly match the current year.

If the business has grown, PAYG instalments may not be enough.

If the business has slowed down, instalments may feel too high.

The ATO explains that you can vary PAYG instalments if the amount is too high or too low, but the variation needs to be considered carefully. You can read the ATO’s guidance here:  How to vary your PAYG instalments.

In a planning review, I look at whether the current instalments make sense in light of expected profit, cash flow, and the likely tax result.

The goal is not to avoid tax. The goal is to avoid being caught off guard by a tax bill that should have been visible earlier.

BAS And GST Need To Be Part Of The Plan

Tax planning often fails when BAS is treated as a separate task.

GST collected from customers is not spare cash. PAYG withholding may need to be reported and paid. A BAS can also show whether the bookkeeping habits during the year are creating problems.

If GST is coded incorrectly, supplier invoices are missing, customer deposits are handled poorly, or payroll is not connected properly, the BAS result may be unreliable.

The ATO’s  Business Activity Statements guide explains that BAS is used to report and pay taxes, including GST and PAYG.

For tax planning, I usually want to review:

• recent BAS lodgements
• GST on sales
• GST credits on purchases
• PAYG withholding
• PAYG instalments
• large or unusual transactions
• asset purchases
• private-use expenses
• coding habits in the accounting file
• upcoming BAS payment timing

A tax plan that ignores the next BAS payment is incomplete.

If BAS is already causing uncertainty, my page on the BAS accountant in Sydney explains how I review the figures before lodgement.

Superannuation Timing Can Change The Planning Conversation

Superannuation is easy to treat as a payroll detail, but it can affect tax planning and cash flow.

For 2025–26, the super guarantee rate was 12%. The ATO’s  super guarantee rates and thresholds page should be checked when reviewing employer obligations.

Timing matters because super deductions generally depend on when contributions are actually paid, not simply when they are recorded as owing.

For employers, 2026 also brought a major change with Payday Super. The ATO explains that from 1 July 2026, employers must pay the super guarantee for each payday rather than quarterly. You can read the ATO’s employer guidance here:  About Payday Super.

That change is not only a compliance issue. It affects cash flow.

If a Sydney business has employees, tax planning should include payroll, superannuation, PAYG withholding, software setup and whether the business has enough cash to meet obligations as they arise.

If payroll is part of the pressure, my page on  payroll services in Sydney explains how I connect payroll records to tax, BAS and reporting.

Asset Purchases Should Be Business Decisions First

Buying equipment before the end of the financial year can be useful in some cases.

It can also be a mistake to make a purchase solely to claim a deduction.

A new vehicle, machine, laptop, fit-out item, tool, camera, software system or piece of equipment should be reviewed as a business decision first. Does the business need it? Will it be used? Can the business afford it? Is the cash better kept for BAS, payroll, rent, suppliers or tax? Is the asset ready for use in the right year? Does private use need to be considered?

The ATO’s  instant asset write-off guidance explains that eligible businesses may be able to claim an immediate deduction for the business portion of eligible assets in the year the asset is first used or installed ready for use.

For 2025–26, the ATO’s small business newsroom also explained that the $20,000 instant asset write-off limit applied on a per-asset basis for eligible small businesses, subject to the rules. You can read the ATO update here:  $20,000 instant asset write-off for 2025–26.

Because these rules are tied to the income year and can change, do not rely on last year’s threshold without checking the current position.

When I review asset purchases, I consider timing, eligibility, business use, GST, depreciation, financing, and cash flow before treating the purchase as a tax strategy.

Do Not Let Deductions Become A Guessing Exercise

A deduction is not valid just because money left the business account.

The expense still needs to relate to the business, be supported by records and be treated correctly. Some costs may be partly private. Some may be capital. Some may need depreciation. Some may need a GST adjustment. Some may not be deductible at all.

The ATO’s  business deductions guide is a good starting point because it explains the basic rule that deductions generally need to be directly related to earning assessable income.

For tax planning, I want to know whether the business has:

• records for major expenses
• supplier invoices
• asset purchase documents
• vehicle records
• loan documents
• insurance policies
• software invoices
• payroll reports
• evidence for home office or mixed-use claims
• records for repairs versus improvements
• notes explaining unusual transactions

If the records are missing, the planning conversation changes. We may need to clean the file before relying on the claim.

Owner Drawings, Director Loans And Company Money Need Review

Tax planning becomes more serious when money has moved between the business and the owner.

A sole trader drawing money from the business account is not the same as a company director taking money from a company. A company is a separate legal entity, and money paid to or for a director requires proper treatment.

• Was it wages?
• Was it a dividend?
• Was it a reimbursement?
• Was it a director loan?
• Was it a private expense paid by the company?
• Was it a business cost with evidence?

If company money and personal money are mixed, the tax result can become difficult to explain. That can affect the company’s accounts, director’s position, retained profits, and tax planning.

For company clients, I often review director payments, loans, wages, dividends and retained profit before the return is prepared.

If this sounds like your situation, my page on  corporate tax accountant in Sydney explains how I review company tax issues.

Structure Should Be Reviewed Before The Business Outgrows It

A business structure that worked two years ago may not be the best structure now.

A sole trader may have grown into a business with staff, finance, vehicles and higher risk. A company may have retained profits but unclear director payments. A trust may need distribution planning. A partnership may need clearer partner balances.

Tax planning is a good time to ask whether the structure still fits the business.

This does not mean changing the structure every time profit increases. It means reviewing whether the current structure aligns with the business’s tax, cash flow, risk, and growth position.

For Sydney businesses, structure questions often arise when:

• staff are hired
• profit increases
• equipment or vehicles are purchased
• a partner joins
• property is involved
• the owner wants to retain profit
• the business wants finance
• the tax bill keeps surprising the owner
• the current setup no longer feels clean

If the structure is part of the problem, the main page on  accounting services in Sydney is a useful starting point.

Trust Distributions Need Earlier Attention

Trusts need timely thinking.

A family trust or business trust should not leave distribution planning until the return is being prepared. Beneficiaries, trust income, deed terms, records, unpaid entitlements, and tax positions may all need to be reviewed before the year closes.

Trust distribution decisions should be supported by the trust deed and proper records. If the accounting does not align with the decision, the trust’s return and beneficiaries’ positions can become harder to explain.

This is not an area for habit.

A trust that has “always distributed the same way” still needs review if income, family circumstances, company beneficiaries or business activity have changed.

If legal interpretation of the deed is required, a solicitor may be involved. My role is to keep the tax and accounting side clear.

Capital Gains And Business Sales Should Be Reviewed Before The Transaction

Some tax planning issues cannot be fixed after the event.

If the business is selling an asset, restructuring, selling shares, selling a business, transferring property, or dealing with a capital gain, advice should be sought before the transaction is finalised.

The ATO’s  small business CGT concessions may be relevant for some business owners, but eligibility depends on specific conditions. It should not be assumed.

A capital gains tax review may involve:

• ownership history
• active asset conditions
• business structure
• timing of the sale
• records of purchase and improvement costs
• related entities
• retirement planning
• trust or company issues
• cash flow after tax

If the transaction has already happened, the options may be narrower. That is why a planning conversation before signing is usually more useful.

2026 Planning Should Also Look At The Next Year

Good tax planning does not only close the current year.

It improves the next one.

If 2026 exposed weak bookkeeping, late BAS preparation, payroll pressure, poor cash flow, unclear director payments or missing records, the planning conversation should identify what needs to change.

That may mean:

• monthly bookkeeping reviews
• more regular cash flow forecasting
• better GST set-aside habits
• payroll checks before each pay run
• cleaner accounts payable and receivable processes
• quarterly tax planning check-ins
• clearer owner payment treatment
• better records for vehicles and equipment
• earlier review of large purchases
• Xero, MYOB or QuickBooks cleanup

A tax plan should leave the business better prepared, not just with a lower number on a worksheet.

What I Usually Ask For In A Tax Planning Review

A useful planning review needs real information.

Depending on the business, I may ask for:

• current profit and loss report
• balance sheet
• BAS history
• PAYG instalment details
• payroll reports
• superannuation records
• bank reconciliation status
• accounts receivable and payable reports
• asset purchases
• vehicle records
• loan documents
• director loan details
• trust distribution history
• prior tax returns
• planned purchases or sales
• cash flow concerns
• ATO correspondence

The documents do not need to be perfect before we speak. If the file is messy, that is part of what we need to review.