When it comes to tax planning for Victorians, success hinges on three things: accurate records, smart timing, and using the right structure. Whether you’re a sole trader, investor, or small business owner, proactive planning throughout the year can legally reduce your tax burden, boost savings, and avoid compliance pitfalls. In this guide, we break down a 12-month strategy to help you make tax season less stressful and more rewarding.
1. Record Everything, All Year
Good tax planning starts with solid bookkeeping. Use the ATO’s my Deductions app to log expenses, snap receipts and track travel from day one of the financial year.
- Back up data to the cloud to avoid lost records due to fire or flood.
- Reconcile bank feeds monthly with cloud accounting software (like Xero or MYOB).
- For businesses, lock coding monthly to streamline quarterly Business Activity Statements (BAS).
Pro Tip: The ATO accepts digital copies of receipts, so go paperless for efficiency and security.
2. Choose or Review Your Business Structure
The right business structure impacts your tax rate, asset protection and compliance obligations.
| Structure | Tax Rate | Best For |
|---|---|---|
| Sole Trader | Marginal (up to 45%) | Freelancers and micro-businesses |
| Partnership | Marginal | Joint ventures, professional firms |
| Company | 25% (small businesses) | Growth-stage businesses retaining profits |
| Family Trust | Variable (based on split) | Families, income splitting, asset protection |
When to review: marriage, buying a home, taking on investors, or reaching $100K+ in revenue.
3. Time Income and Expenses Strategically
Use timing to your advantage:
- Pre-pay up to 12 months of expenses (insurance, rent, interest, memberships) before 30 June.
- Sell losing shares to offset capital gains.
- Salary sacrifice to superannuation within the $30,000 concessional cap (or use carry-forward contributions from previous years).
4. Tap Into Government Incentives
Some tax breaks only last until June 30. Be aware of:
- Instant Asset Write-Off: Deduct eligible assets under $20,000 purchased by 30 June 2025 (subject to legislation).
- Small Business Tax Offset: Up to $1,000 for sole traders and partnerships under $5 million turnover.
- R&D Tax Incentive: Refunds or credits for innovation-related spending.
5. Keep an Eye on Levies and Surcharges
Victorians need to plan for federal and state levies:
- Medicare Levy: 2% for most taxpayers.
- Medicare Levy Surcharge: Up to 1.5% if your income is above $93,000 (or $186,000 for families) without private hospital insurance.
- Holding a compliant hospital policy can actually save you tax.
6. Plan Super Contributions Wisely
Superannuation offers two big tax wins:
- Concessional contributions are taxed at just 15%.
- Pension phase income (once you retire) is generally tax-free.
It’s also asset-protected in bankruptcy. For business owners, super is a powerful retirement and risk-management tool.
7. Watch for State-Based Taxes
Victorian-specific taxes to plan for:
- Land Tax: Applies when total land value exceeds $300,000 for individuals or $250,000 for trusts. Register with the State Revenue Office.
- Payroll Tax: Kicks in if your total annual wages exceed $700,000. The rate is 4.85% for metropolitan businesses.
8. Build an Annual Planning Calendar
Here’s how to align your tax tasks with the financial year:
| Month | Task |
|---|---|
| July | Reconcile PAYG instalments; finalize employee PAYG |
| October | Engage your tax agent before 31 Oct deadline |
| December | Review profits; adjust PAYG or super contributions |
| March | Use carry-forward super; run stock takes if needed |
| June | Final deductions; write-offs; review asset schedules |
TIP: If you miss the 31 October deadline and haven’t engaged a tax agent, you may face penalties or be locked into earlier lodgement dates.
9. Avoid ATO Red Flags
Common audit triggers include:
- Working-from-home deductions that exceed norms without evidence.
- Crypto trading gains not reported.
- Luxury vehicle write-offs without legitimate business usage.
Keep logs, receipts, and digital trails. The ATO can audit up to five years back.
10. Get Tailored Advice From Experts
Laws change frequently, and the real gains often come from structure tweaks, incentive use, and cash-flow planning—not just deductions. TTS & Accountants help Victorian taxpayers and business owners unlock hidden savings and stay compliant.
A quarterly review could save you more than it costs. For smart tax planning for Victorians, contact us today to book a consultation.
Conclusion
Effective tax planning for Victorians isn’t just a year-end scramble. With the right tools, timing, and structure, you can minimize liabilities and maximize retirement savings legally. From pre-paying deductions to managing Medicare levies and land tax, it’s a game of precision. The real value lies in partnering with a proactive accountant who helps you navigate the rules, not just report the results.
Want to optimize your tax position this year? Talk to our team at TTS & Accountants and find out how we can help.
