Tax time for tradies: how to avoid the end-of-year cash crunch

June has a certain feel in the trades. Everyone is chasing invoices, the accountant is asking for paperwork, and somewhere in the back of your mind is a number you do not want to look at yet. Tax time does not create the squeeze. It just shows you what the year already did to your cash.

Why does tax time hurt even in a good year?

Because tax is worked out on profit, and profit is not cash. Over a financial year, a trade business can make a healthy profit on paper while the bank balance tells a different story.

Reasons that happens:

• Jobs finished in May and June that have not yet been paid.
• Equipment or a new ute bought during the year, with the benefit showing in the tax calculation and the cost already gone from the bank.
• Materials bought on account that sit in stock or in a half-finished job.
• Tax withheld, GST and super that were spent on running the business rather than set aside.
• A strong second half that was never matched by a savings habit.

The result is a bill that is perfectly reasonable on paper and awkward to pay on the day. Our cash flow gap planner helps you see the shape of the gap.

What lands at tax time?

For many tradies, a few obligations arrive close together.

Obligation	What it is	Note
Income tax	Tax on the year’s profit	Worked out after the financial year ends on 30 June
BAS	GST, PAYG withholding and PAYG instalments reported together	Quarterly dates listed by the ATO are 28 October, 28 February, 28 April and 28 July
Super	Contributions for employees	From 1 July 2026, contributions are expected within 7 business days after each payday
Supplier accounts	Statements for materials	Often at their own month-end cycle

The June quarter BAS, due 28 July, lands just after the year ends, and can sit alongside the income tax conversation with your accountant. If you have not looked at your numbers until July, that is a lot to take in at once.

What can I do before 30 June?

The best time to deal with tax time is a couple of months before it. A short routine goes a long way.

1. Ask for a rough tax estimate in April or May. Your accountant can give you a ballpark based on year-to-date profit, which turns a vague worry into a number.
2. Chase the overdue invoices. Cash collected before 30 June is cash you can put toward the bill. Our page on slow-paying builders has ideas on speeding that up.
3. Check what you hold for GST, PAYG and super. If the balance is short, find out now.
4. Be careful with big purchases. A purchase can be sensible, but make sure the cash flow is there to handle the tax bill as well.
5. Put the dates in the calendar. Including the 28 July BAS.

What if the bill is bigger than the cash?

First, lodge on time. The ATO is clear that lodgement matters even when payment cannot be made, and it is the foundation for most of the help on offer.

Then compare your options:

• A payment plan. Spreads the amount over instalments. Debts on a plan still accrue general interest charge, which compounds daily, and new obligations must be paid on time. Small businesses that meet strict conditions may qualify for an interest-free plan on overdue activity statement amounts.
• Finance. A loan that pays the ATO in one go, with repayments to a lender. Unsecured options typically run from $5k to $500k, and property-secured loans from $20k to $5m.
• A mix. A plan on one account while finance clears the most urgent one.

An illustrative example, with no real business involved: a landscaping business has a good year, finishes June with a strong profit and a stack of unpaid invoices, and receives a tax bill that is bigger than the cash on hand. Collecting the invoices might close part of the gap, a plan might handle the rest, and a short loan could bridge the weeks in between. The point is to look at the timing, not just the total.

Our page on payment plans versus loans walks through the choice. Or tell us your numbers and a real person will help you work through it.

How do I build a tax time buffer for next year?

A buffer is not a mystery. It is a small, regular transfer.

• Open a separate account that is only for tax.
• Move a fixed share of every payment into it, whatever the month looks like.
• Treat GST, withheld tax and super as untouchable on top of that. The BAS set-aside page shows how.
• Review the balance monthly against what your accountant thinks the year will cost.
• If a month looks tight, plan the gap rather than quietly dipping into the tax account.

It does not need to be perfect. Even a modest, consistent set-aside turns tax time from a shock into an event you saw coming. For a view on your own position, a registered tax professional can confirm what applies to you.

Ready to take the pressure off?

If tax time is closing in and the cash is not quite there, the first step is to ask. The form takes about a minute, and there is no credit check when you first enquire, so you can see what is possible without touching your file.

Your details come to us rather than being sent to a crowd of lenders, so you will not get calls from strangers. A real person reads your situation and phones you to talk it over. Accurate answers, especially what you owe and when it is due, help us match you the right way the first time.

See what you could qualify for