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2025 EOFY Tax Planning Checklist for Small Businesses in Australia

As the 2025 financial year comes to a close, now is the time to take action and prepare your business for a strong tax position. Proper planning before 30 June can help you reduce tax, improve cash flow, and stay compliant with the ATO.

Here’s a practical checklist to guide your end-of-year tax planning.

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1. Finalise Dividends and Trust Distributions

Ensure any dividends or trust distributions are declared and recorded in official resolutions signed by 30 June 2025.

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2. Prepay Expenses to Claim Early

If your business has an aggregated turnover below $50 million, prepaying certain expenses such as rent, insurance, or loan interest may give you an immediate tax deduction this financial year.

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3. Maximise Super Contributions

To claim deductions for super, contributions must be paid and received by the fund by 30 June.

• The concessional contributions cap for 2025 is $27,500.
• Unused caps from previous years may be carried forward if eligible.
• Notify your super fund of any personal deductible contributions.

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4. Write Off Bad Debts

If you have unrecoverable debts, write them off before 30 June to claim a deduction and adjust for GST where applicable.

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5. Review Loan Structures

Check if any loans can be refinanced to increase the proportion of tax-deductible debt.

• Private loans are not deductible.
• Consider repayment or restructuring of Division 7A loans before EOFY.

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6. Adjust or Write Down Inventory

Review your stock levels and write down any obsolete or slow-moving items. If market value is lower than cost, the difference may be deductible.

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7. Offset Capital Gains With Losses

Use available capital losses within your group to offset gains.

• Contracts must be dated before 30 June to apply in this year.
• Plan distributions to make use of group-wide losses.

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8. Review Depreciation Schedules

Scrap or fully depreciate plant and equipment where applicable.

• Review the effective life of your business assets.
• Consider increasing depreciation rates where justified.

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9. Repay Division 7A Loans

Making cash repayments before 30 June can help avoid triggering unfranked dividends under Division 7A.

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10. Trust Compliance & Section 100A

Maintain accurate records for payments made by trusts on behalf of adult beneficiaries (e.g., education fees or motor vehicle costs).

• Payments should ideally be made directly from the trust’s bank account.
• Domestic expenses are not included under this rule.

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11. Confirm Company Tax Rate

Companies with base rate eligibility (turnover under $50 million and less than 80% passive income) pay 25%.

• This impacts dividend strategies and franking credit management.

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12. Maximise Refundable Franking Credits

Review franking account balances before 30 June.

• Strategically distribute franked dividends to eligible entities that may receive refunds.

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13. Claim R&D Tax Incentives

Document all research and development activities clearly.

• Maintain records of related costs and tasks to access R&D tax benefits.

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14. Manage Tax Instalments and Cash Flow

Forecast your tax position and plan for upcoming payments.

• Consider varying PAYG instalments if your actual profit is lower than estimated.
• Use this as an opportunity to boost business liquidity.

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Don’t Leave Tax Planning to the Last Minute

Effective EOFY tax planning needs time. Starting now allows you to make informed decisions and potentially save thousands.

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Need Expert Help With Your EOFY Planning?

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👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
📅 Booking Link: https://calendly.com/ramy-hanna

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