If you have customers who are not going to pay, writing off those debts before 30 June brings the deduction into the 2026 year. 

What you need to have in place 

• The debt must be genuinely bad, not just overdue or in dispute. You need to have taken reasonable steps to recover it and reached the view it won’t be paid. 

• The write-off entry must be made in your accounts before 30 June. 

• The amount must have been included in your assessable income in a prior year. Cash basis businesses generally cannot use this. 

Key takeaway 

Go through your debtors list before 30 June.  

Let your accountant or bookkeeper know so they can reflect it in your books.