When should I start my 2025 EOFY tax planning and what are the key first steps?

You should begin your EOFY tax planning at least 60-90 days before June 30. Key initial steps include: reconciling your accounts, freezing expenses, reviewing fixed asset purchases, finalising payroll and superannuation liabilities, and booking a pre-June 30 tax strategy meeting. Early action prevents last-minute surprises and can unlock deductions or defer income. At Trinity Accounting Practice we guide clients through this checklist with structured templates and an online portal.

Which tax-planning techniques can small business owners use legally before June 30 2025?}

Small business owners can consider: accelerating deductible expenses (e.g., prepaid subscriptions), deferring income to post-June 30, utilising instant asset write-off rules for eligible purchases, reviewing company vs. personal superannuation contributions, clearing old debtors, and documenting business-use assets. Each strategy must align with ATO timing and business purpose rules. Trinity’s team helps build a customised EOFY action plan tailored to your business structure and industry.

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2025 EOFY Tax Planning Checklist for Small Businesses in Australia

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Introduction

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.

Here is a practical checklist from Trinity Accounting Practice 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. Failing to have proper documentation in place before year-end can create compliance issues and affect how distributions are taxed.

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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 in this financial year. This is a straightforward strategy that can reduce your taxable income without changing your business operations.

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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. Key points to consider:

The concessional contributions cap for 2024-25 is $30,000
Unused caps from previous years may be carried forward if your total super balance was below $500,000 at 30 June of the prior year
You must notify your super fund of any personal deductible contributions using the appropriate form before lodging your tax return

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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. The debt must be genuinely unrecoverable, and you should document the steps you took to collect it.

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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, but business-purpose borrowings generally are
Consider repayment or restructuring of Division 7A loans before EOFY to avoid triggering deemed dividends

If you are considering refinancing, our mortgage brokerage division, Nexus Wealth Partners, can assist with business finance and lending options.

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6. Adjust or Write Down Inventory

Review your stock levels and write down any obsolete or slow-moving items. If the market value is lower than cost, the difference may be deductible. Conducting a stocktake close to 30 June supports the accuracy of this claim.

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7. Offset Capital Gains With Losses

Use available capital losses within your group to offset gains:

Contracts for disposal of assets must be dated before 30 June to apply in this financial year
Plan distributions to make use of group-wide losses where structures allow

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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 by the condition or use of the asset
Ensure any assets no longer in use are written off before year-end

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9. Repay Division 7A Loans

Making cash repayments on Division 7A loans before 30 June can help avoid triggering unfranked dividends. If your company has loaned money to shareholders or associates, ensure the minimum yearly repayment is made on time to maintain the complying loan agreement.

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10. Trust Compliance and Section 100A

Maintain accurate records for payments made by trusts on behalf of adult beneficiaries, such as education fees or motor vehicle costs:

Payments should ideally be made directly from the trust's bank account to demonstrate a genuine entitlement
Domestic or household expenses are generally not included under this rule
Proper documentation is essential to demonstrate that distributions reflect genuine arrangements

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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 a tax rate of 25%. All other companies pay 30%.

This impacts your dividend strategies and franking credit management, so confirm your eligibility before year-end to ensure your planning is based on the correct rate.

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12. Maximise Refundable Franking Credits

Review franking account balances before 30 June. Strategically distributing franked dividends to eligible entities, such as individuals on lower marginal rates, may result in refundable franking credit claims.

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13. Claim Research and Development Tax Incentives

If your business undertakes eligible research and development activities, document them clearly throughout the year. Maintain records of related costs and tasks to access R&D tax benefits. Registration with AusIndustry is required before you can claim the offset.

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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, to free up cash flow
Use this as an opportunity to boost business liquidity heading into the new financial year

For businesses that need strategic financial oversight, our Virtual CFO division, VCFO Australia, provides cash flow forecasting and budgeting support to help you plan ahead.

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Do Not 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. The strategies above are most effective when implemented weeks before 30 June, not in the final days.

Our business advisory team works with small businesses year-round to ensure you are prepared well before EOFY. Accurate bookkeeping throughout the year is the foundation that makes effective tax planning possible.

Book your EOFY planning consultation with Trinity Accounting Practice today.

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Trinity Accounting Practice

Accounting Firm in Beverly Hills, Sydney

Phone: 02 9543 6804

Address: 159 Stoney Creek Road, Beverly Hills NSW 2209

Website: www.trinitygroup.com.au

Weekend and after-hours appointments available

Book online now

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Our Virtual CFO division, VCFO Australia, provides strategic financial management, budgeting, forecasting, and compliance support for growing businesses and not-for-profits.

Learn more about what we offer

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Our mortgage brokerage division, Nexus Wealth Partners Pty Ltd, assists clients with home loans, refinancing, and business finance.

Disclaimer: Information provided on this website is intended as a general overview only and does not replace professional advice tailored to your personal circumstances.

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