Tax minimisation strategies for Brisbane and Queensland small businesses use legal pre-EOFY levers: the $20,000 instant asset write-off, super contributions, prepayments, stock and bad debt reviews, and Division 7A loans. Acting before 30 June 2026 may reduce taxable income and support cash flow.
Working with a small business accountant in Brisbane can help SMEs across Brisbane Northside, the Sunshine Coast, and the Gold Coast match these general strategies to their structure, turnover and cash position. Established Queensland SMEs often leave tax planning until July, then discover the most useful levers had a 30 June deadline. The 2025–26 cycle adds a hard timing hook: the temporarily increased $20,000 instant asset write-off applies only for the current income year before reverting to the default settings.
This article provides general information only and does not constitute personal financial or tax advice. Speak with a qualified adviser before making decisions based on your circumstances.
The five legal levers at a glance
Five legal pre-EOFY tax-planning levers can help Queensland small businesses reduce assessable income for the 2025–26 income year: the instant asset write-off, super contributions, prepaid expenses, trading-stock and bad-debt reviews, and Division 7A planning. Each lever has different eligibility rules and deadlines.
The table below summarises who each strategy typically suits and the key deadline. It is a general summary only — the detailed rules for each are covered further below and are drawn from current ATO guidance on the 2025–26 IAWO and the relevant Treasury announcement.
| Strategy | Who it typically suits | Key deadline |
| $20,000 instant asset write-off | Small businesses with aggregated turnover under $10m buying eligible assets | Asset first used or installed by 30 June 2026 |
| Additional concessional super contributions | Owners, partners and employees within the $30,000 cap | Contribution must be received by the fund by 30 June 2026 |
| Prepaying deductible expenses | Small business entities (and those with turnover up to $50m for this concession) | Paid by 30 June 2026; service period ends within 12 months |
| Trading stock and bad-debt review | Businesses on accruals with stock or trade debtors | Action and document by 30 June 2026 |
| Division 7A loan review and offsets | Private company owners; sole traders, and partners eligible for SBITO | Minimum repayments paid by lodgement day; offsets claimed in the 2025–26 return |
Before acting on any EOFY strategy, it is worth checking the rules, timing and commercial purpose behind each decision. Financial Strategies Group supports business owners with proactive tax planning that goes beyond compliance and keeps the bigger financial picture in view.
Strategy 1: Claim the $20,000 instant asset write-off before it reverts
The $20,000 instant asset write-off lets eligible small businesses immediately deduct the business portion of qualifying assets first used or installed ready for use by 30 June 2026. Aggregated annual turnover must be under $10 million to qualify. The threshold applies on a per-asset basis, so multiple eligible assets can each be written off in the same year, according to the ATO’s 2025–26 IAWO guidance.
The current $20,000 limit is a temporary increase from the default $1,000 threshold. The Treasury Laws Amendment that extended the measure until 30 June 2026 passed the Senate on 27 November 2025, with up to 4.1 million small businesses (turnover under $10 million) identified as potentially eligible by the Treasury Ministers’ media release. Unless further legislation is passed, the threshold reverts to $1,000 from 1 July 2026.
For assets that cost $20,000 or more, the rules are different. Under the ATO’s simpler depreciation rules, those assets can be placed into the small business pool and depreciated at 15% in the first year and 30% each year after. Pool balances under $20,000 at the end of the 2025–26 income year can also be written off.
| Feature | 2025–26 income year | Default position from 1 July 2026 (unless extended) |
| Instant write-off threshold | $20,000 (per asset) | $1,000 |
| Eligible businesses | Aggregated turnover under $10m | Aggregated turnover under $10m |
| Pool write-off (balance under $20k) | Available | Reverts to default rules |
Strategy 2: Make additional super contributions before 30 June
Additional concessional super contributions made before 30 June 2026 — within the $30,000 annual cap — can be deductible for eligible businesses and individuals. Employers also need to pay the super guarantee (SG) on time. According to ATO super guarantee rate guidance, the SG rate increased to 12% on 1 July 2025 — the final scheduled increase — and is calculated on ordinary time earnings.
The 12% rate applies to all salary and wages paid on or after 1 July 2025, even if some of the pay periods it relates to fall before that date. Brisbane Northside employers running quarterly payment cycles may want to confirm their payroll software has applied the correct rate for the full 2025–26 year.
For owners contributing personally, the ATO’s concessional contributions cap page confirms the cap is $30,000 from 1 July 2024 and applies to both the 2024–25 and 2025–26 financial years. Unused caps from prior years may also be available, subject to eligibility conditions.
- Carry-forward of unused concessional cap is available where your total super balance was under $500,000 at 30 June of the previous year, using unused amounts from up to 5 prior financial years.
- To deduct a personal super contribution, you need to give your fund a notice of intent to claim a deduction before the earlier of lodging your tax return or the end of the following income year.
- The fund must provide written acknowledgement of the notice before you claim the deduction on your return.
Strategy 3: Prepay deductible business expenses under the 12-month rule
Small business entities can immediately deduct certain expenses prepaid before 30 June where the service period ends within 12 months. This brings forward deductions into the current income year. According to the ATO’s prepaid expenses 2025 guidance, the concession is available to small business entities and to entities that would be small business entities if the aggregated turnover threshold was $50 million.
To qualify under the 12-month rule, the eligible service period must be 12 months or less and must end on or before the last day of the income year following the year the expense was incurred. Prepayments that fall outside these conditions are generally apportioned over the service period or 10 years (whichever is less).
Common pre-EOFY prepayments Queensland SMEs review include:
- Business insurance renewals (where the new policy period ends within 12 months).
- Subscriptions, professional memberships and software licences.
- Rent and lease payments for business premises, where the lease and service period meet the rule.
Working through these with a qualified adviser — such as a registered tax agent or a CPA — helps confirm the timing of each expense and whether the cash-flow trade-off is appropriate for the business’s working-capital position.
Strategy 4: Review trading stock and write off genuine bad debts
Reviewing closing trading stock and writing off uncollectable customer debts before 30 June can reduce 2025–26 assessable income, where the rules are met. Both reviews must follow the ATO criteria to support a deduction.
For trading stock, the ATO’s simplified trading stock rules note that if the value of trading stock has changed by no more than $5,000 over the year, a small business may not need to conduct a formal stocktake. Importantly, an increase in stock value counts as assessable income, while a decrease is treated as an allowable deduction — so writing down genuinely obsolete or unsaleable stock can be a legitimate lever.
For bad debts, the ATO’s bad-debts guidance sets out three core conditions:
- The business must account for assessable income on an accruals basis (cash-basis taxpayers cannot claim a bad-debt deduction for an unreceived amount).
- The amount being written off must have been previously included in assessable income.
- The debt must still exist when written off — it must not have been waived, forgiven or sold.
Documenting the write-off decision in writing before 30 June is generally good practice. Where a debt is later partly or fully recovered, the recovered amount is generally brought back into assessable income in that later year.
Strategy 5: Review Division 7A loans and small business offsets
Owners of private companies generally need to review shareholder loan accounts before 30 June to meet Division 7A obligations and avoid deemed dividends. Sole traders and partners may also want to check eligibility for the small business income tax offset. These are two separate levers that tend to be reviewed at the same time during EOFY planning.
Under the ATO’s Division 7A loans guidance, loans from a private company to a shareholder or their associate need to either be repaid by the lodgement day or be placed on a complying Division 7A loan agreement. Minimum yearly repayments must be made each income year, and the loan interest rate must at least equal the Division 7A benchmark interest rate, which generally changes each year. Missing a minimum repayment can result in a deemed unfranked dividend.
For unincorporated businesses, the ATO’s small business income tax offset can reduce tax on small business income by up to $1,000 each year. It is available to sole traders and to individuals with a share of net small business income from a partnership or trust, where aggregated turnover is under $5 million. The offset is calculated on the proportion of tax payable on net small business income.
A note on Queensland payroll tax
Queensland payroll tax applies to businesses with annual Australian taxable wages above $1.3 million. Growing Brisbane SMEs approaching this threshold often need to monitor wages before 30 June to manage registration and rate exposure. According to the Queensland Revenue Office’s payroll tax rates and thresholds, the current threshold is $1.3 million in annual Australian taxable wages, with a payroll tax rate of 4.75% for employers (or groups) paying $6.5 million or less, and 4.95% for those paying more. Regional employers may also be entitled to a 1% rate discount until 30 June 2030.
Payroll tax is not a deduction lever in the same sense as the others on this list — it is a state tax obligation. However, monitoring projected wages, including any additional super and bonuses paid before 30 June, helps avoid an unexpected payroll tax registration or rate change.
How a small business accountant in Brisbane can help
A small business accountant in Brisbane can map the above EOFY levers to a business’s specific structure, turnover and cash position. Each of these strategies depends on circumstances that are not visible in a general article — for example, whether an asset is genuinely “ready for use” by 30 June, whether a prepayment is commercially sensible, or whether a Division 7A loan is better repaid or formalised.
For Brisbane Northside, Sunshine Coast, Gold Coast and Toowong SMEs, working through a tax-planning checklist with a qualified adviser well before 30 June leaves time to act on the levers that matter. Speaking with a small business accountant Brisbane owners trust early — rather than at lodgement — also leaves room to coordinate cash flow, super timing and lender requirements.
Frequently asked questions
What is the difference between tax minimisation and tax avoidance?
Tax minimisation is the legal use of concessions, offsets and timing rules that are built into Australian tax law. Tax avoidance, by contrast, involves arrangements designed to obtain a tax benefit in a way that the law does not intend, and can attract ATO scrutiny under the general anti-avoidance rules. Strategies like the small business income tax offset are examples of legitimate minimisation. For tailored guidance, a small business accountant in Brisbane can review your structure and turnover.
When does the 2025–26 financial year end for Australian businesses?
The 2025–26 Australian financial year runs from 1 July 2025 to 30 June 2026. Most pre-EOFY tax-planning levers, including the $20,000 instant asset write-off, require action by 30 June 2026 — not at the lodgement date in the following year. For help building a pre-30 June checklist, see Finstrat’s taxation services.
How much is the instant asset write-off for the 2025–26 year?
The instant asset write-off is $20,000 for the 2025–26 income year for businesses with aggregated turnover under $10 million, on a per-asset basis. The Treasury Ministers’ announcement confirmed the extension to 30 June 2026; without further legislation, the threshold reverts to $1,000 from 1 July 2026. For asset-by-asset eligibility, see Finstrat’s taxation services.
What is the concessional super contributions cap for 2025–26?
The concessional contributions cap is $30,000 for the 2025–26 financial year, the same cap that has applied since 1 July 2024. According to the ATO’s concessional cap guidance, additional unused cap from up to 5 previous financial years may be carried forward where your total super balance was under $500,000 at 30 June of the prior year. For super and SMSF planning, see Finstrat’s superannuation services.
Can a sole trader claim a deduction for personal super contributions?
Sole traders and other eligible individuals can claim a deduction for personal super contributions, but only after lodging a valid notice of intent with their super fund and receiving a written acknowledgement. The ATO’s notice of intent guidance sets the deadline as the earlier of lodging the tax return or the end of the following income year. Personalised guidance is available through Finstrat’s superannuation services.
When does Queensland payroll tax start to apply?
Queensland payroll tax applies once a business’s annual Australian taxable wages exceed $1.3 million. The Queensland Revenue Office currently sets the payroll tax rate at 4.75% for employers paying $6.5 million or less in taxable wages, and 4.95% for those paying more, with a 1% regional discount available until 30 June 2030. For wage and structuring projections, Finstrat’s business advice services can help.
Should small businesses act before 30 June 2026 because of the IAWO change?
The 2025–26 income year is the last year of the $20,000 instant asset write-off under current law — without further legislation, the threshold reverts to $1,000 from 1 July 2026, according to the ATO’s simpler depreciation rules. Whether to bring forward an asset purchase depends on cash flow, the asset’s commercial use, and the broader 2025–26 tax position, which can be reviewed with a small business accountant in Brisbane.
Ready to map these tax minimisation strategies to your business?
Each of the five strategies above can suit some Queensland SMEs, and not others — the right combination depends on your structure, turnover, cash flow and growth plans. Finstrat’s team of qualified advisers can review your 2025–26 position and help you act before 30 June, working with clients across Brisbane Northside, the Sunshine Coast, Gold Coast and Toowong. For a tax-planning review with a small business accountant in Brisbane, book a free initial consultation.