Tax Time Doesn’t Have to Hurt: Smart Planning for Dental Practices in 2025

As EOFY 2025 approaches, many dental practice owners feel the usual pressure build, but with the right approach, tax season doesn’t have to be stressful. In fact, it can be a strategic opportunity to tidy up your financials, reduce your tax bill, and enter FY2026 with clarity.

Here are six smart, practical tax planning strategies that Australian dental professionals should consider before 30 June. These aren’t about complicated tax theory, just real-world actions that can make a big difference.

Review Your Financials With Your Accountant

Start by reviewing your year-to-date profit and expenses with your accountant or business coach. This gives you a clear picture of where your practice stands and helps uncover opportunities to reduce tax before June 30.

If you’ve had a strong year, you may want to consider timing purchases, payments, or contributions to optimise your tax position.

Maximise Deductions (Legitimately)

Take stock of your deductible business expenses. Dental practices often claim for:

• Equipment and fit-outs

• PPE and clinical consumables

• Marketing and advertising

• Staff training and education

• Software and subscriptions
  

Thinking about upgrading your chairs or scanner? If eligible, the instant asset write-off may allow you to claim the full amount this financial year - check with your accountant.

Prepay Expenses Where It Makes Sense

If your cash flow allows, consider prepaying some expenses to bring forward the deduction into this year. This could include rent, insurance, or professional subscriptions.

It’s a simple way to reduce your tax burden while covering costs you’d need to pay anyway.

Pay Super Contributions Early

To claim deductions for super contributions this year, payments must clear before 30 June. That applies to both:

• Employer contributions for your team

• Personal contributions for yourself (up to $27,500 concessional cap)

If you have unused concessional caps from the past five years, you may also be eligible to make catch-up contributions - ask your accountant about this.

Write Off Bad Debts and Obsolete Stock

If there are long-outstanding patient accounts that are clearly uncollectable, you may be able to write these off in your books to reflect a more accurate income position. The same applies to expired or outdated stock. A quick inventory review can help tidy up your financials and may reduce your taxable income.

Book a Tax Planning Meeting Now

Don’t wait until after the financial year wraps up — by then, your options are limited.

A quick planning session with your accountant or business coach can help you:

• Make informed, proactive moves

• Avoid common EOFY pitfalls

• Step into FY2026 with more confidence and control
  

EOFY can be a stressor, or a strategic advantage. The difference lies in how you prepare.

Final Word

Tax doesn’t have to be scary, complicated, or left to the last minute. With a few smart steps and the right people on your side EOFY can become one of the most empowering points in your business year.

Disclaimer

This article is intended for general informational purposes only and does not constitute financial, tax, or legal advice. Please consult a qualified tax professional or financial adviser to discuss your specific situation before making any business decisions.