Most small business owners find out what their tax bill is in the same month they have to pay it. By then the year is closed and the only things left to change are the mistakes in the paperwork. Tax planning flips that order. You decide what to do while the year is still open, with numbers in front of you.
This page explains what we actually do, the strategies that work for Australian small businesses in 2026–27, where planning becomes aggressive, and why this year is different because of the CGT changes on 1 July 2027.
What does a tax planning service actually include?
Four things, done in this order.
- A projection. We take your year-to-date figures from Xero, add what we know is coming (a big contract, a new hire, an equipment purchase) and project your taxable income for each entity in your group: company, trust, and each family member who receives income.
- A planning meeting. Usually between March and May. We show you what you'll pay if nothing changes, then the options that change it, each with the dollar effect and the risk.
- Action before 30 June. We draft the trust resolutions, calculate the super contributions, set the Division 7A loan repayments and give you a short list of what you need to do and by when.
- Follow-through. The tax returns are prepared on the same basis as the plan, so the strategy actually lands. A plan that isn't carried into the return is just a meeting.
Key point: The ATO is clear that arranging your affairs within the law is legitimate. What it targets is arrangements whose main purpose is a tax benefit with no real commercial or family reason behind them. Good planning has a reason you could explain to a stranger.
Which tax planning strategies work for small business?
These are the strategies we look at every year. Not all of them apply to every business, and some are only worth it above a certain profit. Figures are for 2026–27.
| Strategy | How it saves tax | Who it suits | Watch out for |
|---|---|---|---|
| Choose who earns the profit | A base rate entity company pays 25% on profit; individual rates run up to 45% plus Medicare levy | Profitable businesses that can leave money in the company | Money taken out later is taxed again, with franking credits |
| Trust distributions | Profit is spread across adult family members at their own rates | Family groups with a discretionary trust | Resolutions must be made by 30 June; section 100A and the proposed 2028 trust tax |
| Concessional super contributions | Deductible contributions are taxed at 15% in the fund instead of your marginal rate | Owners with cash to spare and room under the $32,500 cap | Must reach the fund by 30 June; Division 293 above $250,000 income |
| Carry-forward super cap | Unused cap from earlier years can be used | Total super balance under $500,000 at 30 June 2026 | Product recommendations come from a licensed adviser |
| Instant asset write-off | Assets under $20,000 each are deducted in full | Small businesses under $10 million turnover | Only buy what you need; a deduction is not free cash |
| Prepaying expenses | Small businesses can deduct certain prepayments covering up to 12 months | Businesses with insurance, rent or subscriptions due | Brings forward the deduction, doesn't create a new one |
| Writing off bad debts and obsolete stock | Recognises real losses in the right year | Businesses with old debtors or slow stock | The decision must be made and recorded before 30 June |
| Division 7A loan repayments | Avoids a deemed dividend taxed at your top rate | Owners who have drawn money from their company | Minimum repayment calculated at the 8.77% benchmark rate for 2026–27 |
| Timing capital gains | Moves a gain into a lower-income year, or nets it against losses | Owners selling property, shares or a business | Contract date sets the year, not settlement |
| Salary versus dividends | Balances company and personal tax, and super | Company owners paying themselves | Payday Super now applies to every pay run |
Our full list, including the asset-protection side, is in the guide to strategies before 30 June 2027. The everyday deductions are covered in small business tax deductions.
A worked example
Example (hypothetical, rounded): A plumbing business trades through a company owned by a family trust. The company expects $420,000 of taxable profit for 2026–27. The owner is the only director and draws a $120,000 salary.
| Step | Effect on 2026–27 |
|---|---|
| Owner salary-sacrifices up to the $32,500 concessional cap (less the super guarantee already paid) | Moves part of his income from a 30% plus Medicare marginal rate to 15% in the fund |
| Company buys a needed $18,000 trailer in May | Full deduction under the instant asset write-off |
| Company prepays 12 months of insurance in June | Deduction brought forward into 2026–27 |
| Trust distributes the franked dividend from the company to the owner's spouse, who has little other income | Dividend taxed at her rate, with the franking credit counted |
| Director's loan account repaid under a complying Division 7A agreement | No deemed dividend at the top rate |
Each step is ordinary and legal. Together they can make a meaningful difference to the family's total tax, and the exact amount depends on everyone's other income. None of them involves a scheme, and every one leaves a paper trail that explains itself.
When should you start tax planning?
Earlier than you think. Here is the calendar we work to for a 30 June year end.
| When | What happens |
|---|---|
| July to September | Last year's returns finalised; your plan for this year set; PAYG instalments checked against expected profit |
| October to December | Half-year review of profit and cash; big decisions flagged (sale, purchase, restructure) |
| January to February | First projection; 30 June 2027 valuations booked where needed |
| March to May | Planning meeting with real numbers; decisions made |
| June | Actions carried out: super paid early enough to arrive, assets installed, debts written off, Division 7A repayments made, trust resolutions signed |
| After 30 June | Returns prepared on the plan's basis; what worked reviewed |
If you are reading this in June, it isn't too late, but the menu is shorter. Our EOFY tax tips covers what still works in the last few weeks.
Why is 2026–27 a different planning year?
Because the rules for capital gains change on 1 July 2027.
This is law. Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, from 1 July 2027 the 50% CGT discount is replaced by cost-base indexation for growth from that date, for individuals, trusts and partnerships. A new 30% minimum tax applies to certain capital gains of resident individuals from that date. Assets held on 30 June 2027 are treated as sold and bought back at that point, so growth up to then keeps the 50% discount and isn't taxed until you actually sell. Pre-CGT assets (bought before 20 September 1985) lose their exempt status for growth after 30 June 2027. The small business CGT concessions remain.
What that means for planning this year:
- Don't sell just to beat the deadline. Growth to 30 June 2027 is protected either way. What you need is good evidence of each asset's value at that date.
- Do look at assets in the wrong name. If business premises, shares or property sit in your personal name and you carry business risk, moving them into the right structure before 30 June 2027 may cost less now than later. Our business structuring and asset protection service models that.
- Plan sales across years. From 1 July 2027 capital losses are applied first against older, discounted gains. Selling winners and losers in the right order and the right year can stop a loss being wasted.
- Check whether the minimum tax applies to you. Some people are outside it, for example people who receive certain government support payments during the year.
This is not law. The Tax Reform No. 3 Bill 2026, introduced on 14 October 2026, proposes a 30% minimum tax on discretionary trust income from 1 July 2028. We model it for every trust client, but we won't restructure your trust on the strength of a Bill. The details are in our guide to the 30 June 2027 tax changes.
What is aggressive tax planning, and what is safe?
This is the question we're asked most, and the honest answer is a spectrum, not a line. Here's how we place common ideas.
| Idea | Where it sits | Why |
|---|---|---|
| Claiming every expense you actually incurred for the business | Safe | That is just correct tax |
| Concessional super contributions within the cap | Safe | The law sets the cap and the rate |
| Trust distributions to adult family members who receive and keep the money | Safe, if documented | Real benefit to the beneficiary |
| Distributions to a family member where the cash goes back to you | High risk | Section 100A reimbursement agreement rules; the ATO's focus area |
| Buying equipment you don't need for the write-off | Poor value | You spend $1 to save at most 47 cents |
| Paying a spouse a wage for work they don't do | High risk | The deduction must match genuine work at market rates |
| Shifting income to a company and drawing it as "loans" with no agreement | High risk | Division 7A deemed dividends |
| Marketed schemes with promised tax savings and a big upfront fee | Avoid | Classic warning signs on the ATO's list |
| Booking 30 June 2027 valuations for assets you'll keep | Safe and sensible | It is what the law asks you to be able to prove |
The ATO publishes the warning signs of tax schemes, including arrangements that promise large deductions with little real spending, or that rely on circular money flows. If an idea needs the word "loophole" to explain it, we won't recommend it.
How to check an idea someone else has pitched to you
Before you sign up to any tax arrangement, from us or anyone else, run through this list.
- How is the adviser paid? A fee calculated as a share of the tax you'll save is a warning sign in itself. So is pressure to keep the idea from your own accountant.
- Is the adviser registered? Anyone charging for tax advice must be a registered tax agent. Check the name on the Tax Practitioners Board register. Anyone recommending a financial product, including an SMSF investment, needs an Australian financial services licence.
- Does the money go round in a circle? Loans from the promoter to fund the investment, loans you never have to repay, or cash that comes back to you via a trust or super fund are the patterns the ATO looks for.
- Would it exist without the tax benefit? A business or investment with no purpose other than the deduction is exposed to the general anti-avoidance rules.
- Is there a ruling, and does it match exactly? A product ruling only protects you if the arrangement is carried out exactly as described. For something specific to you, a private ruling from the ATO gives you certainty before you act.
If an arrangement fails these questions, get a second opinion from someone with nothing to sell. We're happy to be that second opinion.
How does tax planning work with BPAG?
- Free strategy call. We look at your structure and last year's numbers and tell you whether planning is likely to be worth it. If it isn't, we'll say so.
- Data in, daily. Your books are kept current in Xero, so the projection is based on this week's numbers, not last year's return.
- Projection and options. Our tax agents draft the projection and the first list of options for your group. A qualified accountant reviews every figure and removes anything that doesn't fit your circumstances.
- Planning meeting. In person at one of our four offices or by video. You leave with a one-page action list.
- Paperwork drafted. Our trust distribution agent drafts the resolution with the deed's powers and timing checked; our Division 7A agent calculates the minimum repayment; our salary sacrifice agent works out how much fits under your super caps. Your accountant checks each one before it reaches you.
- Sign on your phone. Resolutions and documents are signed on your phone, with no portal password.
- Returns that match the plan. We prepare and lodge the returns on the same basis and tell you how it played out.
BPAG is an AI-native firm that runs on Nagaris. The agents draft; qualified accountants review and sign off. Nothing goes to you or the ATO without a person approving it. Your data is held in Australia.
"We have been working with Ray and the fantastic team at BPAG Accountants for several years, and it has truly been the best decision for our company… Their invaluable support has saved us a great deal of money and time." Susan McKendry, Google review
What does tax planning cost?
Proactive annual tax planning is part of our Fractional CFO plan, from $499 per week + GST, along with a monthly strategy meeting and cash flow forecasting. Our Business Insights plan (from $249 per week + GST) suits businesses that want monthly reporting and add a one-off planning session when it's needed. Compare them on our pricing page.
A one-off pre-30 June planning engagement is quoted as a fixed fee before we start. You'll never be billed by the hour for a phone call.
An honest point: if you are a sole trader earning a modest profit with no assets and no plans to sell anything, a proper tax return and a good set of books may give you most of the benefit. Planning pays off when there are choices to make: more than one entity, family members who can share income, assets with gains, or a big decision coming.
What should you send us?
- Year-to-date profit and loss and balance sheet for each entity (or Xero access)
- Last year's tax returns and financial statements for each entity
- Trust deeds and company constitutions
- Director and shareholder loan account balances
- Your super balances and contributions made so far this year
- A list of assets you own and whose name they are in, with purchase dates
- Anything big coming: a sale, a purchase, a new hire, a new business, a separation, a move overseas
You can upload documents or photos from your phone in reply to our SMS or email.
Who else needs to be involved?
Tax planning sometimes touches areas outside an accountant's role. We'll say when, and work alongside the right person.
- Your solicitor prepares trust deed variations, loan agreements and anything that changes legal ownership.
- A licensed financial adviser makes recommendations on super contributions, pensions, insurance and SMSFs. We model the tax effect.
- We do the tax modelling, the projection, the resolutions and the returns.
If your planning points towards a bigger change, the next step is usually our fractional CFO and advisory service for ongoing support, or capital gains tax advice if an asset sale is on the cards. Business owners in specific sectors can also read how we work with trades and construction businesses and medical practices.
Frequently asked questions
How much does tax planning cost?
For most business owners it is included in our Fractional CFO plan, from $499 per week + GST, which covers proactive annual tax planning. If you only want a one-off pre-30 June planning session, we quote a fixed fee before we start based on how many entities you have. You'll know the cost before you decide.
Can I do tax planning in June?
You can, and some strategies still work in June, such as prepaying eligible expenses, making super contributions that reach the fund in time and signing trust resolutions. But many of the better options, like changing how you pay yourself or timing a large sale, need months of lead time. March to May is the sweet spot for most businesses.
Will tax planning trigger an ATO audit?
Legitimate planning is not, by itself, a red flag. What attracts attention is results that don't make sense, such as large losses year after year, distributions that don't match where the cash went, or deductions far above your industry's norms. We document the reason for every strategy so you can explain it if asked.
Is a tax planning meeting worth it if my profit is small?
If your profit is under about $100,000, a sole trader with no staff and no assets, the honest answer is often no. A good bookkeeper and a careful tax return may capture most of what's available. We'll tell you on the free strategy call if planning is unlikely to pay for itself.
Do the 1 July 2027 CGT changes affect my business?
They can. From 1 July 2027 the 50% CGT discount is replaced by cost-base indexation for future growth for individuals, trusts and partnerships, and a 30% minimum tax applies to certain capital gains of individuals. Growth up to 30 June 2027 keeps the discount. If you own business premises, goodwill, shares or property, you need a plan and a record of values at 30 June 2027.
What's the difference between tax planning and tax advice?
Tax advice usually answers one question, often after the fact. Tax planning looks at your whole position before the year ends and decides what to do while there is still time to act. In practice we do both: planning sets the direction, and specific advice confirms each step.
Official sources
General information only, current as at 18 October 2026. It is not personal tax, legal or financial product advice and doesn't take your circumstances into account. Talk to us before you act. Where a recommendation needs a licensed financial adviser or a solicitor, we work alongside them.