As the 2024–25 financial year draws to a close, now is the perfect time to review your finances and make sure you’re prepared for tax time. Whether you’re a business owner, investor, or individual taxpayer, nobody wants to pay more tax than necessary.
At The Quinn Group, our team of experienced tax accountants and lawyers has compiled a practical guide of end-of-year tax tips to help you legally reduce your tax liability and meet all necessary compliance requirements.
While there are obligations that apply to all Australian businesses and individuals, there are also smart strategies you can use to optimise your tax position. From small business deductions to investment-related tax planning and individual tax minimisation tips, we’ve got you covered.
Tax planning can be done year-round, but taking action before 30 June is crucial if you want to take advantage of this year’s tax-saving opportunities.
This guide offers general tips, but for personalised strategies aligned with your circumstances, get in touch with the team at The Quinn Group. We’re here to help you maximise your tax outcome and avoid surprises.
Keep reading for our full list of EOFY tax tips—and don’t hesitate to contact us today to schedule a review before the deadline.
Tax Tips for Small & Medium Sized Enterprises (“SME”)
Take Advantage of the $20,000 Instant Asset Write-Off – The Government has extended the $20,000 instant asset write-off for small businesses through to 30 June 2025. This means eligible businesses can claim an immediate deduction for assets costing less than $20,000, provided they are first used or installed ready for use by the deadline.
The $20,000 threshold applies per asset, giving businesses the opportunity to claim multiple write-offs for qualifying purchases in the 2024–25 financial year.
If you’re planning to purchase business equipment or assets soon, it may be wise to act now to maximise your tax benefit.
- For assets costing over $20,000, they can still be depreciated under the general small business pool – with deductions of 15% in the first year, and 30% in following years.
- Additionally, the Government is extending the suspension of the five-year lockout rule for small businesses that choose to opt out of the simplified depreciation rules – this suspension also remains in place until 30 June 2025.
Understand Division 7A Obligations: The ATO closely monitors the use of company funds or assets for personal use. If a private company pays personal expenses on behalf of a shareholder, it may be considered a deemed dividend under Division 7A. Make sure you understand how Division 7A applies to your business and take appropriate steps to remain compliant.
Scrap Unused Equipment: Review your asset register and identify any outdated or non-functional machinery, tools, or equipment. Disposing of obsolete assets before 30 June could make you eligible for an immediate deduction, helping reduce your taxable income.
Complete a Stocktake: Conduct a full stocktake to assess your inventory. Identifying and writing off obsolete or slow-moving stock before year-end can help tidy your books and improve your financial position.
Prepay Eligible Business Expenses: Small businesses may be able to claim a deduction this financial year for certain expenses that relate to the following 12 months. Consider prepaying costs such as rent, insurance, or business subscriptions to bring forward your tax benefit.
Strengthen Cyber Security Measures: A cyber attack can be highly disruptive and costly. We strongly recommend reviewing your current security protocols and becoming familiar with the ‘Essential Eight’ mitigation strategies outlined by the Australian Cyber Security Centre (ACSC) to better protect your systems and data.
General Business Tax Tips
Write Off Unrecoverable Debts: Now is the time to assess any outstanding invoices that remain unpaid. If you determine that a debt is unlikely to be collected, you should formally write it off before 30 June. This will allow your business to claim it as a tax deduction in the current financial year.
Check and Manage ATO tax debts: If you have unpaid debts with the ATO, take time to review them and, if necessary, initiate contact to arrange a payment plan or resolution. Be aware that some tax debts can now be disclosed to credit reporting agencies, which may affect your business’s credit score.
Starting 1 July 2025, interest charges applied by the ATO – specifically General Interest Charges (GIC) and Shortfall Interest Charges (SIC) – will no longer be tax-deductible. This means any interest incurred on overdue tax liabilities will represent a full financial cost, with no offsetting tax benefit.
With the current GIC rate at 11.17% per annum, these charges already represent an expensive form of debt. Once deductibility is removed, the impact on your cash flow could be even more significant, making it more important than ever to stay on top of tax payments and avoid late lodgements.
Pay your super contributions prior to 30 June: Although superannuation payments for employees aren’t technically due until 28 July 2025, paying them before 30 June allows you to claim the deduction in this financial year. Delaying payment beyond 30 June means the deduction won’t be available until the following financial year.
Reassess Your Business Structure: EOFY is an ideal opportunity to evaluate whether your current business structure still suits your goals. If you’re considering adding a partner, reducing your tax liability, or improving operational flexibility, now is the time to speak with an adviser. Making changes before 30 June could offer immediate and long-term benefits.
Review State Payroll Tax Obligation: Under state payroll tax rules, payments made to contractors may be subject to payroll tax unless specific exemptions apply. Review your subcontractor arrangements to ensure you’re correctly reporting and meeting your obligations.
Prepare for Superannuation Rate Increase: From 1 July 2025, the rate of compulsory superannuation contributions is increasing from 11.5% to 12%.
Payday Super reform
On 14 March 2025, draft legislation was released outlining significant proposed changes to the Superannuation Guarantee (SG) system, aimed at increasing the timeliness of super contributions. Under the proposal, from 1 July 2026, employers would be required to make SG contributions within 7 calendar days of each employee’s payday.
If passed in its current form in the next parliamentary term, the reform would eliminate the current quarterly contribution schedule, replacing it with a stricter, more frequent payment obligation. Employers who miss the 7-day window could face the Superannuation Guarantee Charge (SGC)—a penalty that includes interest charges and administrative costs.
Tax-Time Reminders for Trusts
Review your trust deeds: It’s essential to review the terms of your trust deed before declaring any distributions. Distributions must be made in accordance with the deed to be valid. You should also confirm that the trust is still operating as intended, including verifying whether the Appointer – the individual or entity with the authority to change the trustee – is still appropriate.
Distribute Tax-Free Amounts to Minors: For the 2024–25 financial year, up to $416 can be distributed to a minor (a child under 18) without incurring tax. While the benefit is limited, it may form part of a broader tax-effective distribution strategy within your trust.
Investments & Capital Gains Tax (CGT) Tips
Get your rental deductions right: It’s critical that rental property owners have their books up to date and in order before 30 June. Make sure you are only claiming deductions for expenses incurred for the period when the property is rented or available for rent and in the year of the tax return.
Arrange tax depreciation schedule: to increase deductions for your rental property engage a registered quantity surveyor to prepare a tax depreciation schedule for the property. We can help you with this.
Minimise the CGT you pay on investments: When calculating the value of assets for CGT purposes, be sure all relevant costs of acquiring the asset – purchase price, capital improvements, stamp duty, legal costs, advertising expenses and commission fees – are taken into account to ensure the assessment is as low as possible.
Timing of Capital Gains Tax (CGT) Events: If you are planning to sell an asset, you should consider whether to defer the sale until after 30 June. Depending on your individual circumstances, the timing of the disposal could have significant tax implications.
General 50% CGT discount: When selling an asset, be aware of the 50% CGT discount that is available for assets that have been held for at least 12 months.
Transfer ownership of investment: Put income earning investments like term deposits and shares into a family member/spouse’s name with a low income.
Individual Tax Planning Tips
Boost Your Super with Voluntary Contributions: Consider making additional contributions to your superannuation above the standard employer payments. These personal contributions may be tax-deductible, but keep in mind the annual concessional contributions cap, currently set at $30,000.
Review Income Protection Insurance: Now is a good time to check whether your current income protection cover still meets your needs—especially if your income has increased due to a raise or growing business profits. Premiums for this type of insurance are generally tax-deductible, so adjusting your cover could provide both peace of mind and a tax benefit.
Start or Update Your Vehicle Logbook: If you plan to claim car-related expenses using the logbook method for the 2024–25 year, and either:
- You’ve bought a new vehicle, or
- Your current logbook is more than five years old,
you’ll need to begin a new 12-week logbook before 30 June 2025 to be eligible.
Use Carry-Forward Super Contribution Rules: If you’ve not used your full concessional contribution cap in previous years, you may be able to carry forward those unused amounts and contribute more in a future year.
You can access this opportunity if:
- Your total super balance was under $500,000 as of 30 June of the previous financial year, and
- You have unused concessional contributions from up to five prior financial years.
This can be especially helpful for boosting your retirement savings or catching up after lower contribution years.
Schedule a Tax Planning Meeting – Legally Minimise your Tax
As both an accounting and legal firm, The Quinn Group offers a range of taxation, accounting and legal services in one convenient location. Our taxation specialists can provide tailored tax, and tax planning, advice to legally minimise the amount of tax that you are required to pay.
Call us on 1300 (QUINNS) or + 61 2 9223 9166 or submit an online enquiry form to schedule a tax planning appointment.
