The start of a new financial year offers more than a clean slate. It’s a strategic opportunity for business owners to pause, review and plan. While tax may not be the most exciting part of running a business, being proactive now can reduce what you owe and sharpen your focus for the year ahead.
Whether you are running a sole trader operation or managing a more complex business group, these key considerations will help you start FY26 with confidence and clarity.
Planning for the Year Ahead
Every new year is a chance to realign your strategy and set clear, measurable goals. Think about where your business is headed and what changes could help you get there faster.
This could be as simple as putting a budget in place or as specific as setting targets that directly support your personal or business objectives. For example, if you are aiming to increase sales by 20 percent:
- Will you invest in new advertising channels?
- Could you build strategic partnerships within your industry?
- Is it time to introduce technology to improve efficiency across operations or staffing?
Taking a moment to plan these steps now can make all the difference in reaching your year-end profit targets and ensuring they support the lifestyle or reinvestment goals you have set for yourself.
Reviewing Your Business Structure
As your business evolves, your structure should too. Reviewing your structure at the start of the financial year helps ensure you are operating in the most tax-effective way possible.
Let’s say you are currently trading through a trust and made $1 million in profit last year. In that setup, profits may be distributed to individuals who could be taxed at rates as high as 47 percent including Medicare Levy. By contrast, companies benefit from a flat 25 percent tax rate.
In this case, restructuring into a company or introducing a corporate beneficiary may significantly reduce your tax liability. These decisions can also affect asset protection, succession planning and eligibility for tax concessions, so it’s worth a conversation with your advisor.
Keeping Up with Tax Changes
Each financial year brings legislative updates and staying ahead of these changes helps you avoid costly mistakes. A key update this year is the increase to the Superannuation Guarantee, which rises from 11.5 percent to 12 percent from 1 July 2025.
If your business continues contributing at the old rate, you will be underpaying your employees, which could lead to ATO penalties, interest and back payments. Reviewing these changes now gives you time to:
- Update payroll systems
- Adjust employment contracts
- Communicate changes with your team
Being compliant doesn’t just keep you out of trouble. It shows your team and stakeholders that your business is responsible and forward-thinking.
Meeting Your Obligations
Before you move into the new financial year, make sure all outstanding tax returns, lodgements and payments are up to date.
Unresolved compliance issues can:
- Trigger ATO penalties and interest
- Create tighter lodgement windows in the new year
- Lead to cash flow pressure if two years’ worth of tax becomes due within a short time frame
Clearing the decks before 30 June ensures you’re not carrying unnecessary stress into the year ahead and puts your business in the best possible position to respond to new opportunities or challenges.
Set Yourself Up for Success
The most powerful insight at this time of year? You don’t need to wait until EOFY to make a smart move.
By taking stock now and reviewing your goals, your structure, your obligations and the changing tax landscape, you are actively shaping a more profitable and sustainable future for your business.
And you don’t need to do it alone. Whether you’re unsure what’s changed or want a second opinion on your business structure or tax strategy, reach out to your Hoffman Kelly advisor. We’re here to help you start FY26 strong.
Set yourself up for success this year, get in touch with us today.