Driving Your Tax Bill Down: Why May is Make-or-Break for Smart Business Owners

Ever noticed how the most successful business owners seem to have it all together when tax time rolls around? That’s no accident – it’s careful planning that starts right now, in May. Check out our latest video update here or read on below!

When autumn leaves start falling, most business owners are thinking about staying warm—not about tax planning. But at PBS Accountants & Advisers, we know that May is actually your golden opportunity to slash your tax bill, protect yourself from ATO scrutiny, and set up smart strategies before the end-of-financial-year madness kicks in.

The secret? It’s all about getting your records in order and making strategic moves before June 30 shuts the door on your options.

The May Wake-Up Call: Your March BAS Reality Check

Your March BAS is now lodged, giving you a crystal-clear picture of your business performance over the first nine months of the financial year. This isn’t just paperwork—it’s your financial health check.

If you’re waiting until July to think about tax planning, you’ve already missed the boat. Your March BAS gives you the perfect springboard to forecast where you’ll land on June 30 and make adjustments while you still can.

What exactly should you be reviewing right now?

  • Your profitability trajectory – Are you heading for a bigger tax bill than expected?
  • Deduction opportunities – What legitimate business expenses could you bring forward?
  • Super contribution planning – Could boosting your contributions before June 30 save you thousands?
  • Equipment purchases – Could the instant asset write-off work in your favour this year?

Many of our clients have discovered they are on track for surprisingly profitable years after reviewing their March BAS with us. With proper planning in May, we are able to bring forward equipment upgrades, maximise super contributions, and save thousands in tax—all because they didn’t wait until July to look at the numbers.

The FBT Time Bomb: Is It Ticking Under Your Business?

Fringe Benefits Tax returns are due on May 21st, but that doesn’t mean the ATO will move on afterward. In fact, FBT has become one of their key focus areas for 2025.

The most common FBT traps we’re seeing this year:

1. Vehicle Log Book Failures
Think that work ute is automatically exempt from FBT? Think again. The ATO is specifically targeting vehicles claimed as work-related when they’re regularly used privately.

Without a valid logbook showing at least 90% business use, you could be exposed to thousands in unexpected FBT liabilities. And remember—logbooks must reflect current usage patterns, not what you documented three years ago when driving patterns were different.

2. Remote Work Equipment
With more staff working flexibly, the lines between business and personal equipment use have blurred. That laptop you provided might be used for Netflix on weekends, making it a potential FBT issue, however the ATO acknowledges that some incidental private use is expected and permissible.

3. Staff Entertainment and Gifts
Those Friday team lunches and birthday gifts? They might be building team morale, but they’re also building your FBT exposure if not properly documented and managed.

In our experience, many construction business owners are surprised to learn that team rewards like regular lunches and gift cards can create significant FBT exposure. With the right structure, you can still reward your team while minimising FBT implications.

Digital Record-Keeping: Your Best Defence

The days of shoebox accounting are long gone. Not only is digital record-keeping more efficient, but it’s also your best defence against ATO scrutiny.

The ATO’s data-matching capabilities have grown exponentially in recent years. They know more about your business transactions than you might think. Having robust digital records isn’t just good practice—it’s essential protection.

Tools we recommend to PBS clients:

  • Receipt capture apps that instantly digitise and categorise expenses
  • Vehicle logbook apps that automatically track and categorise trips
  • Cloud accounting integrations that reduce manual data entry
  • Secure document portals for storing and organising tax documentation

The beauty of these tools isn’t just tax compliance—it’s the time they save. Instead of spending weekends sorting receipts, our clients are spending time with family or focusing on business growth.

May’s Three Must-Do Actions For Tax Success

Here’s what every smart business owner should do before May ends:

1. Schedule your pre-EOFY planning session Book a dedicated session with us to review your March BAS results and forecast your year-end position. We’ll identify specific strategies to legally minimise your tax before time runs out.

2. Review and update your record-keeping systems Let us help you implement the right digital tools to capture, categorise and store financial records. Making these changes now gives you a month to embed new habits before EOFY.

3. Check your FBT exposure Even if you’re planning to lodge your FBT return soon, now is the time to review your policies and documentation to reduce next year’s exposure and address any potential issues.

Don’t Let June 30 Catch You Unprepared

The difference between paying too much tax and paying just the right amount often comes down to timing. May gives you the runway to make adjustments, implement strategies, and get your records in order—before the EOFY deadline slams the door on your options.

At PBS Accountants & Advisers, we’re passionate about helping business owners keep more of what they earn through strategic planning and smart record-keeping.

Ready to drive your tax bill down and your profits up? Call us on (08) 8351 0510 or email reception@pbsaccountants.com to book your May tax planning session before our calendar fills up.

Disclaimer: This information is general in nature and does not take into account your personal circumstances, financial situation or objectives. Before acting on this information, you should consider whether it is appropriate for your situation. We recommend that you obtain financial, legal and taxation advice before making any financial investment decision.