Advanced & Emerging Tax Strategies (2026 Edition) ◎ J.M Sarich & Co.

Created: 2026-01-10

Advanced & Emerging Tax Strategies (2026 Edition)

Bucket company optimisation: Use corporate beneficiaries to cap tax at the company rate, while carefully managing Division 7A exposure when funds are later accessed.
Multiple-entity profit streaming: Allocate income across trusts, companies, and individuals to smooth marginal tax rates over time.
Service entity arrangements (properly documented): When commercially justified, service entities can legitimately shift income while withstanding ATO scrutiny.
Restructure under small business rollover relief: Move assets or businesses between entities without triggering immediate CGT when restructuring for growth or risk management.
Timing super guarantee and bonuses: Paying before 30 June can accelerate deductions and improve cash flow planning.

Prepay deductible expenses: Eligible businesses can prepay up to 12 months of expenses and claim deductions upfront.
Invoice timing for cash vs accrual: Strategic control of invoicing dates can defer assessable income where accounting methods allow.
Accrual of employee entitlements: Proper provisioning for leave entitlements can improve tax timing outcomes.
GST cash vs accrual method review: Switching methods (where eligible) can significantly improve cash flow without changing tax payable.

Debt recycling strategies: Convert non-deductible debt into deductible investment debt over time.
Split-loan structuring: Proper loan segmentation preserves deductibility and avoids contamination.
Construction cost segregation: Quantity surveyor reports can dramatically increase depreciation deductions.
Trust-held property income streaming: Distribute rental income to beneficiaries with lower marginal tax rates.
Land tax threshold management (state-based): Entity choice and property distribution can reduce land tax exposure.

Electric vehicle FBT exemptions: Leverage FBT concessions on eligible zero- or low-emission vehicles.
Employee share schemes (ESS): Retain talent while deferring or reducing tax liabilities for employees.
Living-away-from-home allowances (LAFHA): Correct structuring can result in substantial tax savings.
Minor benefits exemption planning: Multiple sub-$300 benefits can be exempt if structured correctly.
Otherwise deductible rule: Reduce FBT by documenting employee business use properly.

Income smoothing for professionals: Use trusts, companies, and super to manage income spikes.
PSI determinations and self-assessments: Proactively documenting PSI position reduces audit risk.
Deferred remuneration planning: Delay assessable income into lower-tax years where legally permissible.
Licensing IP to operating entities: Separate IP ownership can provide both tax and asset protection benefits.
Specialist insurance deductions: Premium allocation between deductible and non-deductible components.

Temporary resident exemptions: Certain foreign income and capital gains may be excluded.
Permanent establishment planning: Structure overseas activities to avoid unintended Australian tax exposure.
Withholding tax optimisation: Use treaty rates and structuring to reduce interest, dividend, and royalty taxes.
Digital platform income classification: Correct treatment avoids misreporting and penalties.
Transfer pricing documentation: Essential for related-party international transactions.

Testamentary trust planning: Income to minors taxed at adult rates post-death.
Super death benefit tax minimisation: Balance tax-free vs taxable components for beneficiaries.
CGT reset on death: Strategic asset retention can eliminate unrealised capital gains.
Business succession rollovers: Pass businesses to the next generation without immediate tax costs.
Family trust succession clauses: Prevent unintended tax outcomes on control changes.

Voluntary disclosures before audits: Often reduce penalties significantly.
Private Binding Rulings (PBRs): Certainty for complex or high-value strategies.
Division 7A annual compliance checklists: Avoid accidental deemed dividends.
Trust distribution resolutions: Timing and wording errors remain a major ATO focus.
Substantiation systems: Digital recordkeeping to defend deductions years later.