Key points
- Review your business structure and tax planning strategies before 30 June to maximise deductions and minimise liabilities.
- Consider bringing forward expenses and deferring income to manage taxable income effectively.
- Ensure superannuation contributions and trust resolutions are completed on time to meet compliance requirements.
As the end of the 2025 financial year approaches, it’s a great time for business owners to think about ways to reduce taxes and plan. Here are some tips to help you save money and get ready for the new financial year.
Deductions
- Purchase Business Assets: If your business has a turnover of less than $10 million, you can immediately deduct the cost of each eligible asset costing less than $20,000. Make sure to buy and use these assets before June 30th 2025 to qualify for a tax deduction this year.
- Review and Write Off Obsolete Assets: Take a look at your fixed asset register and write off any equipment that is no longer in use. This can help you claim a tax deduction for these obsolete items.
- Prepay Deductible Expenses: Consider paying for any tax-deductible expenses you will incur in the next 12 months before June 30th. This includes subscriptions, insurance premiums, and interest on business loans. By doing this, you may be able to claim these expenses in the current financial year and reduce your taxable income.
- Write Off Bad Debts: If you have old receivables that are unlikely to be recovered, write them off to claim a tax deduction before 30 June.
Superannuation and retirement planning
- Plan for Superannuation Changes: The super guarantee rate increases from 11.5% to 12% starting July 1st, 2025. Make sure you’re prepared for this change and adjust your contributions accordingly.
- Make Superannuation Contributions: Ensure any super contributions are deposited into your superfund account by June 30th to claim a tax deduction. Check the cut-off date with your super fund to make sure contributions are received in time. Be mindful of contribution caps and consider the “carry forward unused concessional contributions” if applicable.
- Contribute to Your Spouse’s Super: If your spouse has a low income or isn’t working, contribute to their super fund to qualify for a tax offset and reduce your overall tax liability.
- Ensure Minimum Superannuation Pensions: If you’re drawing a superannuation pension, make sure to withdraw the minimum amount required by June 30th.
- Rent to Your Superfund: If your business rents commercial premises from your SMSF, ensure the rent is paid and the lease is up to date.
Income and investment management
- Obtain a Depreciation Report for Investment Properties: A depreciation report can help you claim tax deductions on depreciable assets and the building itself. This can span across multiple financial years, providing ongoing tax benefits.
- Manage Capital Gains Tax: If you’ve sold any assets like real estate, cryptocurrency, or shares, remember that the contract date is when the asset is considered sold for tax purposes, not the settlement date. If you have held the asset for more than 12 months, you may be eligible for a CGT discount.
Additional considerations
- Make Donations: Ensure any donations are made by June 30th and that the organisation is a deductible gift recipient (DGR) to claim a tax deduction.
- Claim Working from Home Deductions: If you work from home, you can claim deductions using either the revised fixed rate method or the actual cost method. Keep relevant records to support your claims.
- Maintain Complete Records: Keep thorough records of receipts and payments. Ensure any vehicle logbooks are up to date (no more than 5 years old).
Tax planning is crucial for managing your finances and should be tailored to your specific needs and goals. Always seek professional advice when considering these strategies. If you have any questions regarding your tax planning feel free to contact us.
This content is general commentary only and does not constitute advice. Before making any decision or taking any action in relation to the content, you should consult your professional advisor. To the maximum extent permitted by law, neither Pitcher Partners or its affiliated entities, nor any of our employees will be liable for any loss, damage, liability or claim whatsoever suffered or incurred arising directly or indirectly out of the use or reliance on the material contained in this content.
Pitcher Partners is an association of independent firms. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Liability limited by a scheme approved under professional standards legislation.
