Tax Time Doesn't Have to Be Stressful
Running a small business keeps you busy, so it’s no surprise that tax time can arrive before you’ve had a chance to prepare. The good news is that a little planning now can reduce stress, minimise errors, and help ensure you’re claiming every tax deduction and concession you’re entitled to.
As we enter the 2025–26 income year tax season, now is the ideal time to review your records, check your deductions, and discuss any legislative changes with your tax adviser.
Get Your Online Access Ready
Before lodging your tax return, ensure your digital access and authorisations are up to date.
This includes:
- Confirming your business can access online tax and super services.
- Checking that authorised contacts are current.
- Ensuring your registered tax adviser has access to the information they need.
Taking care of these details early can help avoid unnecessary delays as lodgment deadlines approach.
Report All Business Income
One of the most common tax mistakes is failing to report all business income.
Remember to include:
- Cash payments
- Online sales
- Bank transfers
- Goods or services received in exchange for your work (non-cash benefits)
Accurate reporting helps you stay compliant and reduces the risk of ATO queries.
Keep Business and Personal Expenses Separate
Mixing business and personal expenses makes tax time more complicated.
Where personal expenses have been paid from your business account, maintain clear records identifying the business and private portions.
Good record keeping makes preparing your tax return easier and helps support your claims if they’re ever reviewed.
The Three Rules for Claiming Tax Deductions
Before claiming a deduction, ask yourself these three questions:
- Was the expense directly related to earning business income?
- If the expense was partly private, have you only claimed the business-use portion?
- Do you have receipts or records to support your claim?
If the answer to all three is yes, you’re generally on the right track.
Important Change to Interest Charges
From 1 July 2025, the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) are no longer tax deductible.
Interest incurred before 1 July 2025 may still be deductible for the 2024–25 and earlier income years, depending on your circumstances.
Small Business Tax Concessions You Shouldn't Miss
Many eligible small businesses can access valuable tax concessions, including:
- Simplified depreciation
- Immediate deductions for eligible prepaid expenses
- The Instant Asset Write-Off
Instant Asset Write-Off
Businesses with an aggregated annual turnover of less than $10 million using the simplified depreciation rules may be able to immediately deduct the business-use portion of eligible assets costing less than $20,000, provided the asset is first used or installed ready for use between 1 July 2025 and 30 June 2026.
Checking your eligibility before making purchases could result in significant tax savings.
Payday Super Has Arrived
From 1 July 2026, Payday Super is now in effect.
Employers are generally required to:
- Pay Super Guarantee contributions on each payday.
- Ensure contributions are received by employees’ super funds within seven business days.
- Calculate Super Guarantee using the new Qualifying Earnings framework.
- Keep payroll, Single Touch Payroll (STP), and super payment systems up to date.
If you’re unsure whether your payroll software is compliant, now is the time to review your processes.
Use the ATO's Tax Time Resources
The Australian Taxation Office has released its 2026 Tax Time Toolkit for Small Business, providing practical guidance on:
- Tax deductions
- Record keeping
- Business versus private expenses
- Changes affecting the 2025–26 income year
Reviewing these resources before lodging your return can help identify opportunities and avoid costly mistakes.
Need Help This Tax Time?
Every business is different, and tax obligations vary depending on your circumstances.
An experienced adviser can help you:
- Identify eligible tax deductions and concessions
- Ensure your records are accurate and compliant
- Review changes affecting your business
- Prepare and lodge your tax return with confidence
Seek professional advice to discuss your tax position and make this tax time as smooth and stress-free as possible.