As the end of the financial year is fast approaching, there is a number of tax planning opportunities you should review by 30 June.

Darren Williams and Erny Lie provide the following guide covering a variety of measures and strategies that can be utilised.

Small Businesses

For small businesses, several tax measures can help optimize their tax position.

  1. Temporary Full Expensing Rule is still available and will finish 30 June 2023. It allows small businesses with turnovers under $5 billion to claim immediate deductions for new assets and improvements. Additionally, second-hand assets can be written off if the turnover is under $50 million, and there is no cap on these deductions. Assets need to be first used or installed ready for use by 30 June 2023
  2. The Loss Carry Back Tax Offset is also available until 30 June 2023.

This allows businesses to carry back losses in the 2023 year and offset them against paid taxes in the 2019, 2020, 2021, and 2022 years.

Apart from these specific tax measures, there are other strategies for small businesses to optimize their tax position such as:

  1. Deferring income and sales contracts until after 30 June and/or capitalizing income received in advance if the contract spans a specific period
  2. Reviewing trade debtors and write off bad debts
  3. Review trade creditors to ensure all creditors are taken up
  4. Bringing forward necessary expenditure such as repairs, maintenance, and asset purchases where cash flows permit
  5. You should conduct a stocktake, to ensure you have accounted for all stock, identified stock loss and obsolete items, and identify any items that can be written down to lower of cost and net realisable value and write them down in your books accordingly
  6. Small and medium business entities are entitle3 to claim full amount of prepayment in the year it is incurred, provided the service is completed within 12 months
  7. Ensure all employee superannuation contributions are paid by 30 June. Please note superannuation contribution is 11% starting 1 July 2023
  8. Staff bonus to be paid or communicated in writing before 30 June 2023
  9. If there is any sale of business assets there are Small Business CGT Concession available.


  1. Consider paying any work related expenses prior to 30June.
    • E.g memberships, stationery, income protection insurance, donations and ensure that all expenses can be justified, retain receipts and documentation
  1. If claiming motor vehicle two methods can be used
    • Cents per km – up to 5000 km and rate for 30 June 2023 is 78c
    • Log book – full substantiation is required and a valid logbook must cover a 12 continuous weeks and is valid for 5 years
  1. Home Office expenses, there are 2 methods available for 2023:
    • Revised fixed rate method: 67c per hour
  • Need to have a record of total number of hours while working at home
  • Includes home and mobile internet and phone, electricity and gas, stationery and computer consumables
  • Can claim separate amount for expenses not covered by revised fixed rate such as office furnitures, and depreciation or repair and maintenance of assets
    • Actual method
  • Keep records or other written evidence showing amount spent of expenses and work related use of the expenses and depreciation on assets
  1. Consider prepaying interest on investments’ loans (if cash flow permits)
  1. Consider any repairs on investment properties that need to be done and expense them prior to 30 June
  2. Defer triggering capital gains until 12 month holding period to access the general 50% discount, until after 30 June:
  3. Defer disposing of cryptocurrency that would result in capital gain
  4. Concessional contributions cap for the 2022/23 is $27,500 for all individuals regardless of age
  5. Beware of Div 293 – concessional super contributions may be subject to an additional 15% tax if the total adjusted taxable income is over $250,000
  6. Unused concessional caps can also be taken advantage of from previous years.
    • Therefore a deduction higher than $27,500 is possible in the 2023 financial year
    • This will depend on conditions being met which includes the superfund balance being less than $500,000 as at 30June of the previous financial year

Please speak to your DFK Benjamin King Money advisor for further information.