Cutcher | Insights and News

Start strong in January: Why smart tax planning begins well before June

Written by Jace Pedonese, Partner, Taxation & Accounting Services | 17 December 2025 10:35:30 PM

January is a natural reset point for many business owners. After a busy end to the year, the break often brings space to think about the bigger picture. That makes the start of the calendar year one of the best times to get ahead with your tax and financial planning. 

Planning early in the year, rather than waiting for the End of Financial Year, gives you clarity, improves cash flow, and positions your business for a stronger, more strategic 2026. 

Start the year with strategy, not stress 

We all know the EOFY crunch. Businesses race through receipts, try to make last-minute deductible purchases, or rush decisions that should have been planned months earlier. It’s reactive and rarely leads to the best financial outcomes. 

By taking a strategic approach in January, you give yourself room to think clearly about: 

  • Your projected cash flow
  • Upcoming tax obligations
  • Business investments or asset needs
  • Opportunities to reduce tax in meaningful, structured ways

This proactive mindset puts you in control for the entire year, rather than scrambling in June. 

Understand your tax position early 

A lot may have changed since you last reviewed your tax planning. Growth, new staff, wage increases, price adjustments, or new revenue streams can all shift your tax profile. 

By reviewing your numbers early in the year, you can: 

  • Forecast your probable tax position
  • Set aside funds progressively
  • Avoid surprises at year end
  • Make informed decisions as opportunities arise

Strong planning in January means better cash flow and more confidence throughout the year. 

If you’ve sold assets, don’t wait to plan for CGT 

If your business has sold property, shares, equipment or any other capital asset this year, you don’t need to wait until June to start thinking about capital gains tax. 

Starting early means you can explore options to reduce your liability, such as: 

  • Offsetting gains with capital losses
  • Prepaying eligible business expenses
  • Reviewing superannuation contribution strategies
  • Planning the timing of future sales or purchases

The earlier you plan, the more options you have. 

Refresh your employee benefits ahead of the FBT year 

The FBT year ends 31 March, so a January review gives you the perfect window to adjust salary packaging or employee benefit programs. You’ll have time to optimise arrangements, avoid unnecessary FBT, and support your team with tax-effective benefits. 

It’s a quick win that can deliver real value before reporting time arrives. 

Look ahead to growth and investment opportunities 

The start of the year is also a great time to consider expansion, equipment upgrades, or gearing strategies. When you plan these decisions early, you can factor in tax implications, financing options, and potential cash-flow impacts without the pressure of EOFY deadlines. 

The bottom line 

Strong businesses start the year with a strong plan. Beginning your tax and financial planning in January gives you clarity, time and confidence to make better decisions all the way through to 30 June. 

At Cutcher & Neale, we work with business owners to build proactive strategies that provide comfort and clarity year round – so when EOFY arrives, you’re already ahead. 

Speak to a trusted advisor today by calling 1800 988 522 or visiting cutcher.com.au/contact