Whether you are a sole practitioner, partner, barrister, or consultant, proactive tax planning before 30 June can significantly reduce what you pay and accelerate long-term wealth creation.
Impact TFS | 19 June 2026 | Legal Professionals Tax Planning
Lawyers are among Australia’s highest income earners — which means the stakes around tax planning are equally high. The difference between a reactive approach and a proactive one is not just administrative. For legal professionals billing at top-tier rates and building investment portfolios alongside their practice, it can be the difference of tens of thousands of dollars each financial year.
- 47% — Top marginal tax rate for high-income earners in Australia
- 15% — Tax rate on concessional super contributions inside the fund
- 30 June — Most planning opportunities close at financial year end
1. Maximise Superannuation Contributions
For lawyers on marginal tax rates of up to 47%, the superannuation system represents one of the most straightforward and powerful tax-reduction tools available. Concessional contributions are generally taxed at just 15% inside the fund, creating an immediate and substantial tax saving compared to taking the same income personally.
Strategies worth reviewing before 30 June include salary sacrifice arrangements through your practice or employer; personal deductible contributions (particularly for self-employed practitioners); carry-forward concessional contributions from prior years, available where your total super balance is below $500,000; and spouse contribution strategies to split tax benefits across the household.
Watch the caps: The concessional contributions cap applies regardless of how the contribution is made. Breaching it triggers additional tax on the excess at your marginal rate. Review your year-to-date contributions before making further payments.
2. Review Your Business Structure
The structure through which you operate your legal practice has a direct bearing on how much tax you pay, how your income can be distributed, and how well your personal assets are protected. Many lawyers set up a structure early in their career and never revisit it — but a structure that suited a junior associate is rarely optimal for a senior partner or practice principal.
Common structures used by Australian lawyers include companies, family trusts, service trusts, corporate trustee arrangements, partnership structures, and sole trader arrangements. The right choice depends on your asset protection requirements, family circumstances, succession planning objectives, income distribution flexibility, and practice ownership arrangements.
3. Utilise FBT Exempt Benefits
For lawyers operating through an eligible company structure, the Fringe Benefits Tax rules contain provisions that can be used to provide benefits to staff — including yourself as a working director — in a tax-efficient way.
Office Meals and Refreshments
Certain food and drink provided in the workplace may attract favourable FBT treatment and be deductible to the practice. Common examples that may qualify include tea, coffee, and light snacks available to employees on premises; refreshments provided during client or staff meetings; and light meals consumed in the course of a working day on business premises.
Minor Benefits Exemption
The Minor Benefits Exemption is a separate and often underutilised provision that allows certain benefits to be provided FBT-free. To qualify, a benefit must cost less than $300 per person per occasion, be provided infrequently and irregularly, and not form part of any salary packaging arrangement. Eligible examples include restaurant meals, gift vouchers, family outings, sporting event tickets, and entertainment activities.
4. Employ Family Members
Many legal practices can legitimately employ family members in roles that genuinely support the operation of the business. When structured correctly, this creates a real business arrangement that also moves income to family members on lower tax rates — reducing the household’s overall tax burden. Roles commonly filled by family members in legal practices include reception and front desk, administration support, social media management, bookkeeping, client file administration, and marketing support.
Non-negotiable compliance: Any wages paid to family members must reflect genuine commercial market rates for the work performed. Every arrangement must be supported by timesheets, formal payroll records, and documented role descriptions. The ATO scrutinises family employment arrangements closely — if the work is not real or the wage is not commercial, the deduction will be disallowed.
5. Claim Home Office Expenses
Lawyers routinely carry work home. Client correspondence, legal research, court preparation, continuing professional development, and practice management all commonly take place outside the office. Where this is the case, a proportion of home operating costs may be deductible — including electricity and heating, internet and mobile phone expenses (work-related portion), office equipment, and depreciation of office assets. Maintaining clear records throughout the year is what determines whether a claim holds up to ATO scrutiny.
6. Review Motor Vehicle Claims
Travel is a genuine part of legal practice. Attending court, visiting clients, attending settlement meetings, and travelling between offices are all legitimate business activities that can give rise to motor vehicle deductions. The logbook method generally produces the highest deduction for frequent business travellers; the cents per kilometre method is simpler but capped at 5,000 km per year; and company-owned vehicle arrangements may provide additional FBT planning flexibility.
7. Manage Capital Gains Tax
Lawyers often accumulate significant investment portfolios alongside their practice income. Whether you hold shares, investment properties, or business interests, the timing and structure of any disposal matters significantly. Holding an asset for more than 12 months typically attracts a 50% CGT discount. Available capital losses can offset current-year gains. The ownership structure — personal, trust, or company — carries different consequences. Planning before a sale is agreed is when the most valuable CGT strategies become available.
8. Conduct an Annual Tax Planning Review
The most consistent mistake high-income legal professionals make is waiting until after 30 June to think about tax. A structured review before year-end allows you to identify opportunities across superannuation, business structure, FBT concessions, timing of income and expenses, and capital transactions — while there is still time to act on them.
Ready to Review Your Position?
Our CPA accountants in Bankstown and Wollongong specialise in advanced tax planning for legal professionals. Book a free 30-minute consultation and find out exactly where you stand before year-end.
General Advice Disclaimer: This article is intended as general information only and does not constitute personal tax advice. It does not take into account your individual financial circumstances, needs, or objectives. Before acting on anything in this article, you should seek specific advice from a registered tax agent or CPA who can assess your situation. Tax laws and ATO interpretations are subject to change. Impact Taxation and Financial Services Pty Ltd is a CPA Practice. Liability limited by a scheme approved under Professional Standards Legislation.
