← Back to all articles

If you're reading this in March, you have 12 weeks until 30 June. That's not "nearly" enough time. That's the perfect amount of time. Twelve weeks is the sweet spot: long enough to make considered decisions about asset purchases, superannuation contributions, and debt management, but short enough that you can see the year's financial picture clearly enough to act on it.

The builders who get the best EOFY outcomes aren't the ones making panicked phone calls on 28 June asking whether they should buy a new laser level. They're the ones who sat down in March, looked at the numbers, and made a plan.

This post gives you that plan. A week-by-week roadmap from now to 30 June, covering every major tax planning lever available to Perth construction businesses. We'll work through real numbers so you can see exactly how each strategy moves the dial.

Why March Is the Right Time (Not June)

Every year, accountants across Perth are flooded with calls in the last week of June. "Should I buy a new ute?" "Should I prepay my insurance?" "How much super can I put in?" By then, you're making decisions under pressure with incomplete information. You're guessing at the year's profit, you can't get delivery on equipment before 30 June, and your accountant is managing 200 other clients doing the same thing.

In March, your BAS data gives you 9 months of actual results. You can project the full year's profit with reasonable accuracy. You have time to order equipment, arrange finance, action super contributions, and review your WIP. Three months of runway changes everything.

The March Advantage

The 12-Week EOFY Roadmap

Here's the week-by-week plan. You don't need to follow it rigidly - but the sequence matters. Review first, decide second, execute third.

Weeks 1–2 (Early–Mid March): The Financial Health Check

Before you can optimise, you need to know where you stand. This fortnight is about getting your numbers current and projecting the full-year result.

Weeks 1–2 Deliverable: A clear full-year profit projection and an up-to-date balance sheet. This is your EOFY planning baseline.

Weeks 3–4 (Late March): Instant Asset Write-Off Planning

This is the biggest single deduction lever for most small construction businesses. And for 2025-26, the rules are clear - but there's a hard deadline.

The $20,000 instant asset write-off has been extended through to 30 June 2026. Here are the key rules:

⚠ Critical: The $20,000 threshold drops back to $1,000 on 1 July 2026 unless the Government extends it again. There is no guarantee of extension. If you're planning equipment purchases, doing them before 30 June 2026 is significantly more valuable from a tax perspective.

What Perth builders should be buying - think about what your business genuinely needs in the next 12 months and bring the purchase forward: power tools and hand tools, laser levels and survey equipment, safety equipment, laptops, tablets, phones and site cameras, office furniture, trailer accessories, software licences (if capitalised), and small plant items like compactors, concrete vibrators and generators.

Worked example: Perth Constructions Pty Ltd has projected taxable income of $320,000 for 2025-26 at the 25% base rate entity tax rate. It buys: 4 Milwaukee tool kits ($15,200), 2 site laptops ($5,800), laser level and tripod ($4,200), 3 safety harness sets ($2,700) and office desk and chairs ($3,600) - a total of $31,500, all immediately deductible, saving $7,875 in tax.

But remember: don't buy things you don't need just to get a tax deduction. A $20,000 purchase to save $5,000 in tax still costs you $15,000 net. Buy what the business needs; just time the purchase strategically.

Weeks 5–6 (Mid April): Prepayment Opportunities

Small businesses using the simplified tax rules (aggregated turnover under $10 million) can deduct certain prepaid expenses immediately, even though the service period extends into the next financial year. The prepayment must cover a period of 12 months or less that ends before 30 June of the following year.

For construction businesses, the most common prepayable expenses are:

Prepayment example: Perth Constructions prepays public liability insurance for 12 months ($18,000, saving $4,500), six months of yard lease ($24,000, saving $6,000) and 12 months of software subscriptions ($4,800, saving $1,200) before 30 June - $46,800 of deductions and $11,700 of tax saved. Combined with the instant asset write-off, the business has brought forward $78,300 in deductions, saving $19,575 in company tax.

Weeks 7–8 (Late April–Early May): Superannuation Contributions

Superannuation is a double win: the company gets a tax deduction for the contribution, and the recipient pays only 15% tax inside super (compared to up to 47% marginal rate personally). For builder-directors, maximising super contributions before 30 June is one of the most powerful EOFY strategies.

The concessional (before-tax) contributions cap for 2025-26 is $30,000. This includes employer SG contributions (now 12%), salary sacrifice, and personal deductible contributions. At a 25% company tax rate, a $30,000 contribution saves $7,500 in company tax while only costing $4,500 in super fund tax (15%) - a net tax saving of $3,000.

But the real power is in the carry-forward rule. If your total superannuation balance was under $500,000 on 30 June 2025, you can carry forward unused concessional cap amounts from the previous 5 years.

Carry-forward example: Dave the builder earned $150,000 salary in each of the last 5 years with employer SG averaging $16,500 per year, and a total super balance of $380,000 on 30 June 2025. His unused cap amounts from 2021-22 through 2024-25 total $46,500. Added to the current $30,000 cap, Dave can contribute up to $76,500 in concessional contributions in 2025-26. If his SG for the year is $18,000, he can make an additional personal deductible contribution of $58,500 before 30 June. At his marginal rate of 37% + 2% Medicare, the tax on $58,500 in personal income would be $22,815; inside super it's only $8,775 (15%). The saving: $14,040 in a single year.

⚠ Super must be received by 30 June. The contribution must be received by the super fund, not just sent, before 30 June. Most funds need 3–5 business days to process contributions. For SMSF trustees, the contribution must hit the SMSF bank account by 30 June. Don't leave it until the last week.

Weeks 9–10 (Mid–Late May): Bad Debts, WIP & Stock

Bad debt write-offs. Construction is notorious for payment disputes and insolvencies. If you have debtors that are genuinely uncollectable, writing them off before 30 June gives you a tax deduction for the amount. To claim, you must have previously included the amount in assessable income, determine the debt is genuinely bad (insolvency, administration, disappearance, or exhausted recovery efforts), and write it off in the books before 30 June. Remember: you can also claim back the GST you paid on the original supply - a $55,000 bad debt (incl. GST) means a $5,000 GST adjustment on your BAS.

WIP valuation. Your WIP schedule directly determines how much revenue you recognise at 30 June, which directly determines your taxable income. Two critical reviews at EOFY: reassess total estimated costs (if a project's costs have blown out, updating the estimate reduces the revenue recognised), and identify onerous contracts (if total estimated costs exceed the contract value, the full expected loss must be recognised immediately).

WIP impact example: A $2,000,000 contract with original estimated costs of $1,700,000 and costs to date of $1,020,000 recognises 60% ($1,200,000) of revenue. Revising the total cost estimate to $1,850,000 drops completion to 55.1% and revenue recognised to $1,102,703 - a $97,297 revenue reduction and a $24,324 tax saving at 25%. This isn't aggressive - it's simply reflecting the updated cost reality.

Stock and materials. If your company holds materials on hand at 30 June (timber, steel, concrete products, fittings), these are trading stock and must be valued. You can choose cost, market selling value, or replacement value. If market value has fallen below cost, valuing stock at the lower market value reduces your taxable income. A stocktake at 30 June, with documented valuations, is essential.

Weeks 11–12 (June): Trust Distributions, Final Actions & Documentation

Trust distribution planning. If your construction business operates through (or alongside) a family trust, the trustee must resolve how to distribute the trust's net income before 30 June. Distribute to individuals in lower tax brackets (mindful of Section 100A scrutiny), consider the bucket company at the 25% rate (watching Division 7A on unpaid present entitlements), and weigh franking credit considerations.

The June checklist: confirm all super contributions have been received by the fund; ensure all asset purchases are delivered and operational; process bad debt write-offs; complete the stocktake; sign trust distribution resolutions (dated before 30 June); pay all employee wages and super owing; and review director's loan accounts - the balance should be nil or in credit.

Common Mistakes Perth Builders Make at EOFY

  1. Buying things you don't need. A $20,000 purchase saves you $5,000 in tax at 25% - but costs you $15,000 in cash. Only bring forward purchases the business genuinely needs within the next 12 months.
  2. Missing the 'installed ready for use' rule. Ordering a $19,000 piece of equipment on 25 June that arrives on 5 July doesn't qualify. Allow 4–6 weeks for delivery and installation.
  3. Forgetting super is only deductible when received. The funds must be received by the super fund before 30 June - and don't forget the "Notice of Intent to Claim a Tax Deduction" form (s290-170) before you lodge.
  4. Not updating WIP cost forecasts. Stale cost estimates on blown-out contracts mean overstated revenue and overpaid tax.
  5. Ignoring the director's loan account until it's too late. If the director's loan is in debit at 30 June, you have a Division 7A problem. Check it in March while there's time to fix it.
  6. Late trust distribution resolutions. A resolution made on 1 July is as good as no resolution at all - the default 47% rate on undistributed trust income is one of the most expensive compliance failures in Australian tax.

EOFY Planning Summary: Savings at a Glance

For a Perth construction business with $320,000 in projected taxable income: instant asset write-off $31,500 (saving $7,875), prepayments $46,800 (saving $11,700), carry-forward super contributions $58,500 (saving $14,625), bad debt write-offs $33,000 (saving $8,250) and a WIP cost estimate revision reducing revenue by $97,297 (saving $24,324) - a total of $66,774 in tax savings. That's not a typo. And every item on this list is a legitimate, above-board strategy that the ATO expects businesses to use.

Thinking Bigger: Is Your Structure Still Working for You?

Key EOFY Dates and Deadlines

Frequently Asked Questions

Can I claim the instant asset write-off on a vehicle?

Yes, but there's a limit. The car cost limit for depreciation purposes in 2025-26 is $69,674. If a car costs more than this, you can only depreciate up to the car limit. And since most vehicles cost more than $20,000, the per-item threshold won't apply to the vehicle itself - it goes into the depreciation pool instead. Accessories and modifications purchased separately (and under $20,000 each) may qualify on their own.

My business turns over $12 million. Can I still use the instant asset write-off?

No. The $20,000 instant asset write-off is only available to businesses with an aggregated annual turnover of less than $10 million. If your turnover exceeds this, assets are depreciated under the general depreciation rules.

What if I prepay something and then the service isn't delivered?

If you claim a deduction for a prepaid expense and the service period doesn't eventuate, you'll need to include the refunded amount as assessable income in the year you receive it. The key is that the prepayment must be for services that are genuinely expected to be provided.

Do I need to pay Q4 super before 30 June to claim the deduction?

For employer SG contributions, the deduction is available in the year the contribution is made (i.e., received by the super fund). The Q4 SG due date is 28 July, but if you pay it after 30 June, the deduction falls into the next financial year.

Can I carry back losses if my construction company makes a loss this year?

The loss carry-back offset allows eligible companies to carry back tax losses from 2025-26 against profits from the 2024-25 year and receive a refundable tax offset. The company must be a small or medium business (aggregated turnover under $5 billion). The refund is limited to the lesser of the tax paid in the prior year and the loss multiplied by the company tax rate.

My trust distributes to my wife but she doesn't really do anything in the business. Is that a problem?

Potentially, yes. Section 100A of the ITAA 1936 is the ATO's tool for attacking trust distributions where the named beneficiary doesn't enjoy the "real benefit" of the distribution. The safest approach: if you distribute to family members, ensure the money genuinely flows to them and they have control over it.

The Bottom Line

EOFY tax planning for construction businesses isn't about tricks, loopholes, or pushing boundaries. It's about timing. Every strategy in this post involves spending or contributing money the business was going to spend anyway - just making sure it happens in the right financial year.

The builders who save the most tax are the ones who start in March, not June. They know their numbers, they have a plan, and they execute methodically over 12 weeks. No panic, no scramble, no missed opportunities.

You've got 12 weeks. Start with your year-to-date P&L and your WIP schedule. Everything else follows from there.

Disclaimer: This blog post is general information only and does not constitute tax, legal, or financial advice. Tax rules are complex and fact-specific. Always consult a qualified tax professional before acting on any information in this article. Rates, thresholds and caps referenced are for the 2025-26 income year and may change. The instant asset write-off threshold of $20,000 applies to the period 1 July 2025 to 30 June 2026 and reverts to $1,000 from 1 July 2026 unless further extended.