Tax Planning Strategies Every SME Should Know
February 17, 2026
Small business tax planning should be part of every business owner’s strategy, not just a tick-and-flick exercise at tax time.
Good planning helps manage cash flow, reduce risks, meet ATO obligations and keep more of your hard-earned profits.
Tax planning is the process of organising your business affairs in a way that legally minimises tax you pay while meeting all ATO obligations. It involves understanding your structure, income, deductions and timing of transactions.
The ATO provides tools and support to help small businesses get tax and super right. They also highlight that not everyone needs to be registered for GST unless turnover is $75,000 or more, and that many small businesses struggle with GST obligations.
The legal structure you choose affects how you are taxed and your ongoing compliance obligations. Structures such as sole trader, partnership, company or trust each carry different tax treatments. Getting the right advice early ensures your tax position remains efficient as you grow.
If your business is registered for GST, you must lodge a Business Activity Statement (BAS) periodically to report and pay GST, PAYG instalments, and other obligations. Systems like Simpler BAS can reduce the number of GST questions if you qualify, making reporting easier and more accurate.
The ATO emphasises the importance of good record keeping for income, expenses, GST and PAYG liabilities. Regular bookkeeping ensures you claim legitimate deductions and avoid mistakes that can trigger compliance issues.
Small businesses can access tax time toolkits, guides on allowable deductions, and online services to manage ABNs, GST, and BAS. The ATO also offers guidance through free learning platforms and masterclasses on topics such as cash flow, deductions and GST basics.
If you employ staff, planning for PAYG withholding, super guarantee contributions and reporting is critical. Setting aside funds for these regularly avoids cash flow issues later.
Small business tax errors often involve underreporting income, incorrect GST reporting or misunderstanding deductions. These mistakes attract ATO attention and may lead to penalties.
Small business tax planning is not just an end-of-year concern. Regular planning aligned with your business goals and ATO obligations gives you clarity, reduces risk and helps drive better financial outcomes.
Contact CIB today for assistance creating the right tax plan for your business.
Your goals deserve clear financial direction. Whether you are growing a business or protecting your personal wealth, our advisers are here to guide you with practical strategies that deliver results.
