Sunshine Coast Region, Queensland
Business Accountant in Tanawha
A $1,000 offset and a prepayment, both decided before 30 June
Business tax planning, returns and bookkeeping for Tanawha sole traders, partnerships and small companies, from a CPA practice.
Tanawha is a rural locality 4.3 km south-west of Buderim, on the former Bruce Highway route now called Tanawha Tourist Drive. In the 2021 Census, Managers made up 18.7% of its employed residents, and the top industries included Cafes and Restaurants at 4.9% and Computer System Design and Related Services at 3.2%. Two of the decisions below have to be made before 30 June.
Tanawha in brief
The locality and its 2021 Census.
Timber cutter Frank Cunning ran sawmills at Kiel Mountain from 1960, Forest Glen from 1968 and Nambour from 1973. Bellingham Maze opened in 1993 and the Maroochy Regional Bushland Botanic Garden on 1 December 2001. In 2021 the locality had 1,312 residents, and 21.9% of those employed worked at home.
Three year-end decisions for small businesses
The small business income tax offset
Why it happens
A sole trader, or a partner or beneficiary sharing in small business income, earns a profit from a business with aggregated turnover under $5 million.
Why it matters
The small business income tax offset is 16% of the tax on net small business income, up to $1,000 a year per person. It applies to individuals, not to companies, and it is lost if net small business income is a loss.
How we help
The focus is on clarity so you can make an informed decision.
Prepaying before 30 June
Why it happens
A business considers paying next year's rent, insurance or software subscriptions before 30 June.
Why it matters
A small business entity, with turnover under $10 million, can deduct a prepaid expense immediately if the service period is 12 months or less and ends by the last day of the next income year. In the ATO's example, a $24,000 lease paid on 1 June 2026 for 1 July 2026 to 30 June 2027 is deductible in full in 2025-26.
How we help
Our work is methodical and designed to reduce rework and correspondence.
When a prepayment is spread out
Why it happens
The prepaid period runs past the end of the next income year.
Why it matters
The deduction is then spread over the service period, or 10 years if that is shorter. In the ATO's example, $15,000 of advertising paid on 31 May 2026 for 1 June 2026 to 30 June 2027, a 395-day period, is apportioned across two years. Amounts under $1,000 can still be deducted immediately.
How we help
With the routine handled, you can focus on running the business with current and dependable numbers. Check the start and end dates on each invoice before you pay early.
Frequently asked questions
What is the small business income tax offset?
An offset of 16% of the tax on your net small business income, capped at $1,000 a year, for sole traders and individuals with small business income from a partnership or trust where aggregated turnover is under $5 million.
Can I prepay expenses to claim them this year?
Yes, for a small business, if the prepaid period is 12 months or less and ends by the end of the next income year.
Does a company get the $1,000 offset?
No. The offset is for individuals, including partners and trust beneficiaries with a share of small business income.
Where to next
Have a question?
Plan before 30 June
The goal is to keep your affairs in order with minimal disruption to your day to day operations.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm