What Tax Planning Actually Looks Like: FY26 Case Study

Tax planning gets talked about a lot at this time of year, but it tends to be described in the abstract. “Bring expenses forward.” “Top up super.” “Check your structure.” Useful in theory. Not always clear in practice.

So instead of another generic checklist, we wanted to walk you through what tax planning actually looks like for a real business: what we discuss, what we change, and what it’s worth.

The client below is a composite of several we work with, and the numbers are illustrative. But the situation is genuinely representative of many of the trades and service businesses we see across WA.

The starting point

Jordan runs a plumbing and maintenance company through a Pty Ltd, with a family trust as the sole shareholder. FY26 turnover is tracking at around $3.2m, and his profit before tax (with no planning) would have landed at roughly $425,000.

As a base rate entity, that profit attracts company tax at 25%. Without intervention, Jordan was looking at a tax bill of $106,250.

We caught up for his annual planning session in early April. Six strategies came out of a 90-minute conversation. Here’s how each one worked.

1. Instant asset write off: $28,000 deduction

Jordan needed to replace a tired work ute and had been quietly putting up with an underpowered jet rodder for two years.

The ute (picked up second-hand for $18,400) and the trailer-mounted rodder ($9,600) both sit under the $20,000 threshold. That’s the key: the threshold applies per asset, not in aggregate. Provided each asset is installed and ready for use before 30 June 2026, the full cost of each is immediately deductible.

The catch most people miss: it’s “ready for use” that matters, not “ordered” or “paid for.” If a supplier delivery slips into July, the deduction is gone.

Deduction: $28,000.

2. Prepaying expenses: $18,000 deduction

Small business entities can prepay up to 12 months of deductible expenses and claim them in the current year. It’s not magic (it just shifts the deduction forward by a year), but in a high-profit year, that timing matters.

For Jordan, we prepaid:

• 12 months of business insurance premiums
• A year of cloud software subscriptions (Xero, jobs platform, comms)
• Vehicle registrations across the fleet

Deduction: $18,000.

3. Super top up using the carry forward cap: $40,000 deduction

This is the one most business owners under use, and it’s often the biggest single lever in a planning session.

Jordan’s total super balance was under $500,000 at 30 June 2025, which meant he could draw on unused concessional contribution cap space from the previous five financial years, on top of the standard $30,000 cap for FY26.

We worked through his ATO record of unused cap and made an additional deductible personal contribution of $40,000 to his SMSF.

The economic logic: Jordan was moving money from a 25% corporate tax environment into a 15% super tax environment, while still controlling the asset. The contribution had to be received by the fund (not just sent) before 30 June, and we lodged a notice of intent to claim before lodging his return.

Deduction: $40,000.

4. Motor vehicle log book reset: $4,000 deduction

Jordan’s log book was three years old. In the time since, he’d taken on more on site supervision and a long running commercial fit out, meaning his actual business use had climbed.

A fresh 12 week log showed 82% business use. He’d been claiming 65%.

This isn’t a sexy strategy. It takes 12 weeks of discipline. But for any business owner whose use patterns have shifted, refreshing the log book is genuine money on the table.

Deduction: $4,000.

5. Accrued staff bonuses: $15,000 deduction

Jordan wanted to recognise his crew at year end. By documenting the bonus commitments in writing before 30 June, with the amounts, the recipients, and the conditions clearly defined, the bonuses became deductible in FY26, even though they’re paid out in early FY27.

The documentation is non-negotiable. A vague intention to “look after the team” doesn’t get the deduction. A board minute or written commitment does.

Deduction: $15,000.

6. Genuine repairs brought forward: $10,000 deduction

A compressor service, two trailer overhauls, and some workshop electrical work had been on Jordan’s “do it eventually” list for months. We scheduled them for May.

The line that matters here is repairs vs. improvements. Replacing a worn part with a like for like is a repair (deductible immediately). Upgrading to a higher spec replacement that genuinely improves the asset is capital (depreciated over time). We worked through each item to make sure we were on the right side of the line.

Deduction: $10,000.

The outcome

Additional deductions identified	$115,000
Tax liability without planning	$106,250
Tax liability after planning	$77,500
Cash retained in the business	$28,750

Add to that $40,000 sitting in Jordan’s super (taxed at 15% rather than distributed and taxed in his hands), and the real economic benefit of the session is materially higher than the headline number.

What this case study is really showing

Every one of these strategies was already sitting inside Jordan’s business. We didn’t restructure anything. We didn’t sell him a product. We didn’t take aggressive positions. Each item is a standard, defensible deduction available to most small businesses, but only if they’re identified, documented, and actioned before 30 June.

The reason most businesses miss them isn’t sophistication. It’s timing. By the time a return gets prepared in October or November, every one of these levers has expired. They have to be pulled while the year is still open.

That’s what tax planning season is for.

How we run a planning session

A typical AFI tax planning session takes 60 to 90 minutes and covers:

• Forecast profit for the year and resulting tax liability
• Available deductions (the six above, plus structure specific items like trust distributions, Division 7A loans, and franking position)
• Cash flow implications of each strategy, because a deduction you can’t fund isn’t a deduction
• A written action list with deadlines, dollar amounts, and owners

You walk out knowing what to do, what it’s worth, and when it has to be done by.

Want to run yours?

Our FY26 planning window is open. If you’re not yet booked in with us and want to see what tax planning could look like for your business, get in touch at admin@accforit.com.au.