As the calendar year draws to a close, most people turn their attention to holidays, summer plans, or simply winding down. Yet this period is also one of the most important times to pause and consider your tax position. 

While tax time may feel months away, many of the decisions that influence your 2025–26 outcome need to be made before 31 December. 

Acting early doesn’t just help reduce stress later — it can create real financial advantages.

Why Year-End Tax Planning Matters

End-of-year tax planning is all about foresight. Many financial actions take time to implement, have cut-off dates, or need to be part of a longer-term strategy. Reviewing your situation now allows you to:

1. Maximise deductions before it’s too late.
   Certain deductible expenses, investments, or superannuation strategies must be completed within defined timeframes. Leaving things to the last minute often means missing opportunities that could have reduced your tax bill or strengthened your financial position.
2. Smooth out cash flow for the year ahead.
   By projecting your income and expenses before the year ends, you can identify potential pressure points and put steps in place to balance them — whether that means adjusting PAYG instalments, planning business purchases, or spreading out expenses.
3. Avoid surprises at tax time.
   A proactive review highlights any looming liabilities early. This gives you time to prepare rather than being caught off-guard by an unexpected tax bill in 2026.
4. Align your tax strategy to life changes.
   A new job, business growth, investment property, family changes, or shifts in financial goals can all alter your tax position. Year-end planning ensures your tax strategy still reflects your real-world situation.

Smart Tax Tips for 2026

Looking ahead to the 2026 financial year, there are several steps individuals and businesses can take now to set up for success.

1. Review your income structure.
   If you expect a change in income — higher earnings, irregular payments, or business volatility — start forecasting now. This can help you adjust withholding, manage PAYG instalments, or decide whether to bring forward or defer income and expenses.
2. Plan your deductible contributions.
   Superannuation remains one of the most tax-effective investment vehicles. Assess how much room you have under your concessional contribution cap and whether contributing before year-end can support both your tax planning and retirement strategy.
3. Organise your records early.
   Good record-keeping makes the difference between claiming what you’re entitled to and missing out. Block out time now to categorise receipts, update logs, and archive digital records. This saves hours of frustration during tax season.
4. Consider capital gains implications.
   If you’re planning to sell assets, analyse how the timing affects capital gains tax. Holding an asset for over 12 months may unlock valuable discounts, while strategic timing of gains and losses can reduce your overall tax payable for 2026.
5. Revisit your business structure.
   For business owners, the end of the year is a strategic time to review your structure. The right structure not only supports asset protection and growth — it can materially influence your tax efficiency.

Why Your Relationship With Your Accountant Matters

Tax is not just a once-a-year event. It’s an ongoing process that benefits enormously from a strong, proactive relationship with your accountant.

A trusted adviser brings clarity to complex rules, ensures you don’t miss opportunities, and helps you interpret how legislative changes affect your goals. More importantly, they get to know your circumstances — your plans, pressures, risk profile, and future ambitions. This allows them to provide tailored advice rather than generic compliance work.

When you maintain regular communication instead of only checking in at tax time, your accountant can help you plan ahead, avoid pitfalls, and make confident financial decisions throughout the year. In a landscape where tax law continually evolves, having an engaged, collaborative accountant gives you peace of mind and a strategic advantage.

Looking Ahead

Thinking about tax at the end of the calendar year is one of the simplest ways to strengthen your financial wellbeing. With early planning, smart strategic moves for 2026, and a strong partnership with your accountant, you set the foundations for better outcomes — not just next tax season, but for many years to come.

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)