7 End of year tax moves you should do before Christmas

But before the year wraps up, there are a few tax and cashflow tasks worth knocking out now, not in January when you’re already behind.

Here are 7 simple end of year steps that can save you money, prevent ATO issues, and set your business up for a smoother start to 2026.

1. Check your ATO account before you switch off

What’s happening:

A lot of business owners don’t realise they have unpaid amounts sitting on their ATO account: GST, PAYG, income tax, or interest.

Why it matters:

If anything is overdue, interest keeps compounding daily. And from 1 July 2025, ATO interest is no longer tax-deductible, so it’s now a straight cost to your business.

What to do:

• Log into the ATO Business Portal or MyGovID.
• Check your account balances and due dates.
• Set up a payment plan if needed.
• Make sure all BAS and IAS lodgements are up to date (lodging on time is better than lodging late).

A quick 5-minute check now can save you money and a headache in January.

2. Bring forward deductible expenses (if it helps your position)

What’s happening:

Some expenses can be prepaid and claimed this financial year.

Why it matters:

If your 2025 income is higher than expected, bringing forward deductions can reduce your taxable profit.

What you can prepay:

• Insurance
• Software and subscriptions
• Professional fees
• Rent
• Marketing campaigns
• Office expenses

Tip: Don’t prepay just for a tax deduction. Only do this if it genuinely helps your business.

3. Review asset purchases before the rules change

What’s happening:

The $20,000 instant asset write-off remains in place for now, but it drops back to $1,000 on 1 July 2026.

Why it matters:

If you need equipment, tools, a new computer, or a work vehicle, buying and installing it before 30 June 2026 could give you a much bigger tax benefit.

What to do before year-end:

• List the equipment you’ll likely need in the next 12–18 months.
• Get quotes early.
• Plan purchases so you’re not rushing mid-2026 with supply delays.

4. Reconcile everything now. Don’t wait for tax time

The worst time to fix bookkeeping mistakes is after the financial year. December is a perfect time to clean things up.

Check and reconcile:

• Bank accounts
• Credit cards
• Loan accounts
• Payroll and super
• GST coding
• Supplier balances
• Outstanding invoices

Accurate books = fewer ATO issues and faster tax prep next year.

5. Chase overdue invoices before everyone shuts down

Cashflow slows down in December and January. If you don’t chase money now, you might not see it until February.

What to do:

• Follow up overdue invoices before clients go on leave.
• Offer early-payment incentives if cash is tight.
• Send reminders to big debtors.
• Review your payment terms. They may need tightening for 2026.
• More cash collected now means less stress over the Christmas break.

6. Forecast your holiday cashflow (even a simple one helps)

December and January often have lower sales but higher costs (wages, rent, super, and BAS).

Plan for:

• Payroll dates over Christmas
• January BAS and PAYG
• Super due early in the new year
• Supplier payments
• Any ATO instalments

If your cashflow dips in January most years, prepare for it now. Even a basic 6–8 week forecast can help.

7. Get ready for January ATO deadlines

January is a heavy reporting month, and most businesses forget that.

Coming up:

• BAS
• PAYG instalments
• Superannuation
• Payment plan commitments
• Any catch-up lodgements from earlier in the year

Sort out your paperwork in December so you’re not scrambling when you’re back from break.

What it all means

A few simple steps in December can save you tax, avoid interest charges, and keep your cashflow steady:

• Check your ATO account
• Prepay key expenses if it makes sense
• Plan asset purchases ahead of the write-off changes
• Reconcile your books
• Chase debtors early
• Forecast holiday cashflow
• Prepare for January deadlines

Do the prep now and you’ll walk into 2026 organised, confident, and ready.

How FTA Accountants can help

We help Queensland businesses stay ahead of tax changes and cashflow crunches, especially in construction, trades, and small business.

We can assist with:

• ATO account reviews and payment plans
• Year-end tax planning
• Asset purchase timing
• Cashflow forecasting for January and February
• BAS preparation and lodgement
• Payroll, super, and bookkeeping clean-ups

If you want peace of mind going into the holidays, we can help.

Book your year-end review
Get everything sorted before the Christmas rush.
Spots are limited as we get closer to January.

📞 Call (07) 5409 2300
📧 info@ftaaccountants.com.au
Or book a year-end review online: