As the end of the financial year approaches, the pressure to spend money for the sake of tax deductions can be

overwhelming. We are bombarded with advertisements promising massive savings if we buy now, but does spending a

dollar to save forty cents actually make sense for your bottom line? In this episode, I break down why the traditional

approach to tax time might be costing you more than you realise.

We explore the difference between spending for the sake of it and making strategic investments that move your business

forward. From the traps of luxury car purchases to the benefits of investing in your team, this conversation is about shifting

your mindset from tax-driven to growth-driven. It is about making sure that every dollar you spend is a step toward your

bucket list goals, not just a way to lower a tax bill.

What You Will Learn:

• Why spending money solely to save tax is often a losing financial strategy

• How to use the June 30 deadline as an impetus for genuine business growth

• What are the common pitfalls of luxury vehicle purchases at tax time

• Why bringing forward planned investments can give you a three month head start

• How to avoid making rash decisions on the 28th of June that you will later regret

• Why team culture investments can be the best use of your end of year budget

Notable Quotes:

• A hundred dollars spent to save thirty-five to forty dollars in tax has never made a lot of sense to me.

• The tax deduction becomes a bonus, an added benefit of doing what you have just done.

• Don't make a decision for a tax deduction, make it to improve your business.

• If you have done the planning, you are less likely to fall prey to the marketing.

Key Takeaways:

• Strategy should always come before tax considerations when making business purchases.

• Use end of year sales to buy items you were already planning to purchase later in the year.

• Be aware of the limits on car deductions to avoid unexpected tax bills.

• Investing in a business coach or team morale can have a higher ROI than physical equipment.

• Effective tax planning is a twelve month process, not a last minute rush in June.

For more tools to help you align your business with your life goals, download our episode workbook at

bucketlistaccountant.com.au or via the link in these show notes.

TaxTime

Contact details:

David Patterson on LinkedIn

The Bucketlist Accountant: Because financial freedom shouldn't mean sacrificing your wildest dreams.

Subscribe now and get ready to take control of your money and your life!

Co-host: Anthony Perl

Produced by: 'Podcasts Done for You'

#SmallBusinessGrowth #BucketListAccountant #FinancialStrategy #BusinessPlanning #TaxDeductions #EntrepreneurLife

#WealthCreation

Tax time.

2

Why spending to save tax is a trap.

3

Join the bucket list accountant himself,

David Paterson, as we explore how to

4

make smarter end of financial year

decisions without falling into the trap

5

of spending money just to save tax.

6

Learn why your business goals should

drive your spending decisions, discover

7

how bringing forward planned investments

can support genuine growth, and gain

8

insights into avoiding costly mistakes

around car purchases, equipment upgrades,

9

and last-minute marketing pressure.

10

This episode provides a practical

framework for using tax time as

11

an opportunity to strengthen your

business and move closer to your bucket

12

list goals.

13

I'm your co-host Anthony Pearl.

14

Let's dive into making

your bucket list happen.

15

David, let's turn our

attention to tax time.

16

It is always a hot topic for everyone.

17

It's the time of year where we

start seeing lots of ads on TV.

18

It's end of financial year, come and

buy this and that, and they're enticing

19

you into these different things.

20

And often we think of it in terms

of personal items, but there's

21

an opportunity, isn't there, to

utilize this to tick off bucket

22

list items for your business?

23

David Patterson: Yeah, yeah, yeah,

there is, Anthony, and traditionally

24

tax time is about spending money to

save tax, and I- I've had many examples

25

of clients who have spent money with

the only goal of saving tax, which…

26

I mean, I'm an accountant, and

saving people tax is one of the

27

parts of the job, but saving tax,

spending money for the sake of saving

28

tax to me has never made sense.

29

$100 spent to save 35 to $40 in tax

has never made a lot of sense to me.

30

But if you can take advantage of 30 June

and be spending money on things that

31

are gonna help improve your business

and maybe bring that cost forward, like

32

it, it might be something that you're

gonna do in September, for example.

33

Let's bring that forward to June and

take advantage of the tax deduction,

34

but it's on something that you're

gonna spend money on at a point in time

35

that was gonna improve the business

36

Anthony: Yeah, and I think

that's the trick here, isn't it?

37

To use it as an impetus to maybe make

a decision now to buy something because

38

there's a slight advantage to it.

39

Not that the advantage is the main driver,

more that it's an opportunity to look at

40

the bucket list and go, "Well, it's just

that little cherry on top," which gives

41

it the nudge to say, "Let's do it now."

42

David Patterson: Oh, 100%.

43

And, you know, that it could be

that leading into 30 June, people

44

are having specials or sales.

45

Officeworks is a prime one.

46

You see them advertising all the time

coming up to end of financial year.

47

There's something you're gonna buy anyway.

48

Buying it before 30 June

gives you the tax deduction.

49

Also, potentially you're getting

it at a slightly cheaper amount

50

because people are giving a slight

discount to try and get your money

51

in the door before 30 June for them.

52

Anthony: I think the important thing here

is though is actually understanding what

53

your business needs first, and that can

look like all sorts of things, right?

54

'Cause people tend to think, because

you're led by the advertising, more

55

of the bigger ticket items or the,

the, the stuff that might be more

56

physical in making a difference.

57

It could, you know, as you talk

about Officeworks, it might be, you

58

know, new desks or a new computer.

59

But there's a lot of other things that

can help the business that might be the

60

right time to actually pull the lever

and actually do that, and it could

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be one-off items that could involve

doing something for all of the team.

62

There's many possibilities that can

help the business because sometimes just

63

offering that little bit of assistance,

taking them out for a, for a meal or,

64

you know, getting some massages or

whatever it might be that works for your

65

team, i- is enhancing them, enhancing

the experience they have, enhances the

66

output that they're going to have in the

business, enhances the fact that they'll

67

probably stay longer in the business.

68

Right.

69

All of those things can be very much

net positives in the longer run.

70

They're not necessarily, as you

talk about, necessarily just

71

straight dollars and cents.

72

David Patterson: Oh, 100%.

73

And any of those things where it makes

the team, everyone, you, the owner,

74

the team, it makes them feel better,

makes them feel wanted and needed.

75

All of that sort of stuff

can be really key drivers to

76

making the business go better.

77

And again, back to the tax deduction

element of it, using that 30 June

78

as the opportunity to say, "Okay,

we were gonna do this in August,

79

September, October," whatever the

case may be, let's bring it forward.

80

Which means that your team get

the experience sooner, so they

81

get the benefit out of that.

82

The business then gets the benefit

of the increased enthusiasm around

83

it, and you've been able to bring

that tax deduction in at the time.

84

But the whole heart of it is more about

business growth than the tax deduction.

85

The tax deduction's become

a bonus, an added benefit of

86

doing what you've just done.

87

And even th- things like biting the

bullet and hiring the business coach and

88

getting that in before June, and cash

flow permitting, paying for the 12 months.

89

You were gonna do it, you were thinking

of doing it in August, September, bring

90

it forward, sign it up, pay for 12

months and get the big tax deduction now.

91

But again, it's, it's a cost that you're

incurring that's going to … well,

92

it's more an investment that you've

incurred that's going to improve and

93

help the business in the long run.

94

Anthony: And I think there's often a

focus on some of these bigger ticket

95

items is along the way, and a part

of that's because of the advertising.

96

You know, the, and, and part of that's

because of government incentives

97

that have existed at, at various

times that have said, "Right, you've

98

got a certain amount that you can

spend and get a tax deduction for."

99

And that's great when that happens,

but again, people see the, "Okay, I've

100

got X amount to spend," but doesn't

mean that you have to look at one big

101

ticket item just because there might be

an incentive to spend $30,000 doesn't

102

mean you have to go and buy a car

103

David Patterson: No, and I, I don't think

the incentive that the government had

104

with 100% tax deduction on equipment,

cars, a- any form of equipment,

105

had a lot of people going out and

buying cars, buying tractors, buying

106

whatever, you know, because they were

getting 100% tax deduction for it.

107

Now, the 100% tax deduction was

great, but unless you needed the car,

108

unless you needed the tractor, unless

it's gonna improve things, you've

109

still outlaid more money than what

you're getting as a tax deduction.

110

So it still, to me, always comes back to,

is the new car going to help in any way?

111

And it may just be…

112

Like, there's nothing wrong

with going, "Well, I've had

113

this old car for six years.

114

I just want a new car."

115

That's great.

116

Let's take advantage of it, and it's

filled a need beyond just the tax

117

deduction because you've just felt like

you wanted to treat yourself to a new car.

118

No problem Don't just buy the new

car because you're getting 100% tax

119

deduction if you bought a car two years

ago, because you're still, you're out

120

of pocket from a cash flow perspective.

121

I think all these decisions still

need to be made around is it

122

gonna help improve my business?

123

Is it gonna make my business better?

124

Or i- in the car perspective, is

it just something, you know…

125

Don't make a decision for a tax deduction.

126

Anthony: I think we're led astray

by a lot of thinking that isn't

127

relevant to small business.

128

For example, in the corporate world, you

often hear departments saying, "Well, we

129

have to spend our budget before the 30th

of June, because if we don't, we won't

130

get allocated the same budget next year."

131

And, uh, we can debate the wrongs and

rights of that, but it's, when it comes

132

to small business, that's not a, a

sense of thinking that comes into it.

133

Because at the end of the day, most

of the small businesses, the owner is

134

central figure to that, and whether

he spends the money or doesn't spend

135

the money might be the difference as

whether how much profit he's taking home.

136

David Patterson: 100%.

137

100%.

138

And you're right, the marketing and all

this stuff, you know, April, May, June,

139

it's almost saying you have to do this,

otherwise your business is going to suffer

140

because you haven't got the tax deduction.

141

And I'm probably gonna repeat

myself, but it's all to me still

142

around will this expense I'm about

to incur make my business better?

143

If the answer to that is yes, do it,

and if you've got expenditure that

144

you're looking at in the next two to

three months after June, look at it,

145

can I afford to bring it forward?

146

If the answer's yes, do it, and the

tax deduction, again, as I've said,

147

becomes more of a bonus than the purpose,

the main purpose behind incurring

148

that expenditure in the first place.

149

I think the more that you can get that

thinking into your brain, the better

150

off you're gonna be in the long run.

151

Anthony: Hi, everyone.

152

Just a reminder, check out the show notes.

153

There is lots of information in there,

including a link you can click on to

154

download a workbook from this episode,

dedicated to just this episode, and

155

it will have information about all

of the tips and tricks that David has

156

given in the episode, things for you

to fill in and think about so you are

157

on your journey for your bucket list,

action steps, as well as some key

158

takeaways and quotes from the episode.

159

So, you don't wanna miss that one.

160

Please go and check it

out in the show notes.

161

A reminder again at the end of the

episode, but it's one not to miss.

162

Yeah, and I think that's such an

important aspect of all of this,

163

is changing the way you think.

164

And having those real

conversations in advance, right?

165

I think it's, again, the advertising

lure, it might start happening, you

166

know, four weeks out from the end

of financial year, maybe even six.

167

But sometimes those decisions need

to be thought about and worked out

168

well in advance of that process.

169

You shouldn't make a, a rash decision.

170

Someone that goes out on the 28th of

June and says, "I've got two days to go

171

and buy this, I'm gonna go buy it now."

172

It's usually a decision you're going

to regret at some point very soon.

173

David Patterson: 100%.

174

And it comes back to the importance,

and this is what we're doing,

175

is effectively planning all this

stuff 12 months of the year.

176

So we have a 12-month goal of what we're

trying to achieve, and so as we're going

177

along, we're doing the things that we

need to do to improve, rather than waiting

178

to a date set by the government as, as

far as 30 June goes to make a decision.

179

But we're making those decisions right

throughout the year based on what's

180

the best outcome and what's, what

does the business need to, to improve.

181

So from that perspective, we're kind

of tax planning 12 months of the year,

182

rather than the last two or three months

183

Anthony: Yeah.

184

So when it comes to all of this, I mean,

again, it's something that we've talked

185

about in previous episodes, this whole

idea of having a trusted advisor around

186

you, because this is something that

involves planning, not being a, "Oh, I'm

187

going to fall t- for a marketing line."

188

David Patterson: Absolutely.

189

And if you've done the planning,

you're less likely to fall prey to the

190

marke- And let's face it, some of that

marketing is very, very good, and it,

191

it makes you feel like a sh- "If I don't

do this, gonna go down the Googler."

192

Like, it's so well done that

you feel like you have to do it.

193

But if you've got the plan and you've got

the, you understand where you've, where

194

you're heading and what you've gotta do,

you're less likely to fall into that trap.

195

Anthony: Yeah, and I think that's a, an

important avenue for people to pursue

196

with their trusted advisor, is having

that strength of knowing what you can

197

say yes to and what you can't say yes to.

198

I mean, there always has to

be some form of discretion.

199

Let's face it, we're all- Right

… victims of some of the marketing.

200

Absolutely.

201

And some of the marketing,

as you say, is great.

202

I mean, how many of us are strict enough

when we go to the supermarket and go to

203

the shopping and don't pick up something

that wasn't on the list originally?

204

Oh.

205

You know?

206

David Patterson: 100%.

207

There, there's absolutely nothing wrong

with just a purchase off the cuff.

208

Absolutely nothing wrong with that at all.

209

But again, you- you're doing

that from a personal perspective.

210

You know, y- you just, like I said with

the car, you just might want a new car.

211

That's fine.

212

Understand in the grand scheme

of things what that means.

213

If you want a new car, buy a new car.

214

If it gives you a, a tax deduction, great.

215

But the main purpose has to be

either a business related thing

216

or, like you said, just a personal

decision that that's what I wanna do.

217

That's great.

218

In both cases, the tax deduction

to me is almost a bonus.

219

It's an added extra

220

Anthony: So tell me, let's pluck

out some of the good and the bad

221

decisions that you've seen made when

it's come to end of financial year.

222

I bet you've seen some doozies,

and I bet you've seen a few really

223

great decisions that have been made.

224

David Patterson: I think, yeah, some

of the worst decisions, a- and this

225

is just from a lack of understanding,

i- is around car purchases.

226

And the reason I say that is car

purchases, there's a limit on how much

227

you can claim for some vehicles, you know?

228

Someone's gone out and bought a car for

100, $150,000 thinking that they could

229

get that whole car as a tax deduction.

230

The reality is that you can only get

a certain level, and it's changed

231

over the years, but it's around

the 60, 60-odd thousand dollar

232

mark at the minute that you can

claim as a tax deduction for a car.

233

There's certain exceptions to

that, but in the whole, anything

234

over that you can't claim.

235

And so I've had many clients come

and say, "Well, I've bought this car.

236

It's 150 grand.

237

I'll be able to claim that

as a tax deduction, won't I?"

238

"You'll be able to claim part

of it as a tax deduction."

239

"What do you mean?"

240

You know?

241

And suddenly they've bought this car

with the main aim of getting a big tax

242

deduction and they've suddenly realized,

"I'm not gonna get anywhere near as, as

243

much as I w- was thinking I would get."

244

So then that purchase has become…

245

They've kind of then begrudged

that purchase, and so suddenly the

246

enjoyment of the car's gone because

not bought it for the right purpose.

247

Cars are always that, that downside.

248

A win on equipment purchases,

I, I think there's a lot of

249

those, and they're just…

250

The government gave a lot of people

a lot of opportunities when you could

251

claim 100% tax deduction to upgrade some

equipment that barely needed upgrading.

252

So, you know, th- they were some

good wins that we can't get anymore.

253

They've changed the rules.

254

But when they were made, because the

farmer's had the tractor for 30 years,

255

and suddenly here's a great opportunity

to get a brand-new one a- and get some

256

benefit as well, it's a win for everyone.

257

Anthony: It's a, it really interesting

time of year, I think, with this,

258

and it's often taken up with a lot

of negatives as well, isn't it?

259

You know, it's tax time.

260

Oh, and there's just, you know, th-

and you see all sorts of people that

261

are in business with their accountants

going, "Oh no, it's a mad rush and

262

I've got to get everything done."

263

And, but as you say, this is a, it

can be a great opportunity, and it's

264

a great opportunity not because of the

small tax advantage that may or may not

265

be had, but because there are sales,

there are avenues to do it, and it is

266

a, look, we need to get some stuff into

the business, done for the business.

267

David Patterson: Yeah.

268

Anthony: Let's look at that and say,

well, everyone is out there offering

269

stuff, so let's jump on that bandwagon

'cause we know that we need X, Y, Z.

270

We know that there's this much

available in cashflow to make that

271

possible, so let's jump on and do that.

272

David Patterson: Absolutely.

273

It's a great opportunity to bring

forward and take advantage of it

274

now because of the 30 June deadline.

275

So if you're planning on doing

something, bring that forward, and

276

then you get the benefit and the

advantage of that for a few extra

277

months than what you would've done.

278

So it, it's a great time

to do that, absolutely.

279

Anthony: So just to wrap things

up, for those of people that are

280

listening, and we hope you're not

listening on the 28th of June or the

281

30th of June, that'd be even worse.

282

So long as you're listening well before

that, the question that you need to

283

answer is, is what are the steps that

people need to take immediately to

284

say, "Okay, is there something I can

take advantage of at this tax time?"

285

What are the first things they

need to do before they get to the

286

point where they make the purchase?

287

David Patterson: I think it's about

having a think about what the business

288

needs to make the business better.

289

Um, and if that's new computer equipment,

if that's a new piece of equipment,

290

a new car, if there's things that

they n- need to make the business

291

better, start to have a look now.

292

And now, like you said, hopefully

they're not listening on the

293

28th of June or the 1st of July.

294

Um, start having a look now at

where you can get that stuff.

295

Look at who's having discounts or

sales or whatever leading up to 30

296

June, and be able to make a decision

that's an informed decision, not

297

a rushed end of June decision.

298

Anthony: Look at things that might

also help your team, that ultimately

299

will help your business go better,

and may help you as an individual.

300

And as we started in the beginning,

that may be a business coach,

301

it may be taking people out for

dinner, whatever it might be.

302

If it's going to make an impact

on the business, take advantage.

303

David Patterson: Absolutely.

304

Anthony: The Bucket List

Accountant podcast is brought

305

to you by David Paterson and his

team at Bucket List Accountant.

306

Go and visit their website

for more information.

307

Details, of course, in the show notes.

308

I'm Anthony Pearl, your host

from Podcast Done For You.

309

We look forward to having your

company in the next episode.