Why Tax Planning Matters More Than Ever in 2025

EOFY 2025 Tax Planning Guide for Australian Businesses | Trinity Accounting

Learn effective tax planning strategies for EOFY 2025 with Trinity Accounting. Maximise deductions, improve cash flow & stay ATO-compliant.

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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

Introduction: Why Tax Planning Matters More Than Ever in 2025

As the end of the 2024–25 financial year approaches, Australian businesses face both opportunity and obligation. Effective tax planning isn’t just about reducing tax — it’s about improving cash flow, growing your business, staying compliant, and preparing for the future.

At Trinity Accounting Practice, we help our clients understand what they can legally claim, when to act, and how to implement forward-thinking strategies that go beyond year-end deductions.

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Chapter 1: Understand the Tax Planning Timeline

Tax planning is not a one-off event. It’s a 12-month journey. Here’s what to consider in each phase:

Early-Year Planning (July–September):

• Review last year’s tax outcomes
• Set forecasting goals
• Plan for potential asset purchases

Mid-Year Assessment (October–February):

• Check in on tax position
• Track super contributions
• Adjust salary packaging or PAYG estimates

Pre-Year-End Strategy (March–June):

• Bring forward expenses
• Defer income if viable
• Review any unrealised capital gains/losses

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Chapter 2: Take Advantage of the $20,000 Instant Asset Write-Off

The Australian government has reintroduced the $20,000 instant asset write-off threshold for eligible businesses with aggregated turnover below $10 million.

Eligible Assets Include:

• Computers and office equipment
• Tools and machinery
• Vehicles under the threshold
• Software subscriptions or upgrades

Action Steps:

• Ensure assets are installed and ready for use by 30 June 2025
• Document asset details in your accounting system
• Work with Trinity to ensure correct treatment in your tax return

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Chapter 3: Bring Forward Expenses to Reduce This Year’s Tax

Prepaying certain business expenses can bring forward deductions into the 2024–25 year.

Common Prepaid Expenses:

• Rent (up to 12 months in advance)
• Business insurance
• Interest on business loans
• Software subscriptions

Prepayment Strategy:

• Review cash flow first
• Only prepay where it improves tax outcome without affecting operations

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Chapter 4: Maximise Super Contributions

Superannuation contributions are one of the most effective ways to reduce taxable income while securing retirement savings.

2024–25 Concessional Cap:

• $30,000 per individual (includes employer SG)
• Non-Concessional Contributions Cap: $120,000 per individual.
• Contributions must be received by the fund before 30 June

Bonus:

• Catch-up contributions apply if you’ve not used the full cap in previous years (from FY19 onward)

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Chapter 5: Identify and Write Off Bad Debts

If a customer isn’t going to pay, writing off the debt by 30 June allows you to claim it as a tax deduction.

How to Qualify:

• Debt must be previously included as income
• Must be written off in your accounts before EOFY
• Keep clear evidence of your efforts to recover

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Chapter 6: Review Depreciation and Asset Registers

Depreciation rules vary depending on asset types and business structure.

Small Businesses Can:

• Use simplified depreciation rules
• Instantly write-off low-cost assets
• Pool other assets for accelerated deduction

Action Items:

• Review asset register with us at Trinity
• Reconcile depreciation schedules
• Consider scrapping obsolete assets

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Chapter 7: Plan for Capital Gains and Losses

Selling assets like shares or property? Timing is everything.

Capital Gains Tips:

• Hold assets over 12 months for 50% CGT discount
• Offset gains with capital losses
• Defer sale until post-30 June if you expect lower income next year

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Chapter 8: Evaluate Business Structure

Your current structure may no longer be the most tax-efficient.

Ask:

• Is a trust or company better for asset protection or tax minimisation?
• Are you exposed to unnecessary personal liability?
• Is your business eligible for small business CGT concessions?

At Trinity, we evaluate these questions with you and can advise if a restructure will improve your tax outcome and compliance.

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Chapter 9: Understand ATO Compliance Risks

The ATO is focusing heavily on:

• Work-related deductions
• Cash economy businesses
• Superannuation guarantee non-compliance
• Incorrect GST claims

Best Practice:

• Ensure all records are up to date
• Use accounting software like Xero (we’re certified advisors!)
• Lodge BAS and super on time
• Don’t ignore ATO letters — respond early

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Chapter 10: Take Action on Trust Distributions and Dividends

If your business operates through a discretionary trust or private company, you need to:

• Document trust resolutions before 30 June
• Review Division 7A loans to avoid penalties
• Declare and record any dividends appropriately

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Chapter 11: Industry-Specific Tax Tips

For Construction & Tradies:

• Claim tools, protective gear, vehicle costs
• Watch for PSI (Personal Services Income) rules
• Review subcontractor payments under TPAR

For Childcare Providers:

• Deduct educational materials, food, occupancy
• Review staff benefits and fringe benefits

For Allied Health & Pharmacies:

• Deduct uniforms, professional memberships
• Review depreciation on medical equipment

We specialise in industry-specific planning. Let’s tailor a plan that works for you.

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Chapter 12: Forecast Next Year’s Tax Now

EOFY tax planning isn’t just about this year — it’s about building resilience for the year ahead.

Forecasting Includes:

• Reviewing income trends
• Building in future PAYG instalments
• Planning next year’s super
• Allocating R&D tax incentives if applicable

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Final Checklist Before 30 June 2025

✅ Book a review with Trinity
✅ Finalise payroll and super contributions
✅ Write off bad debts
✅ Prepay relevant expenses
✅ Consider major asset purchases
✅ Complete trust resolutions
✅ Review CGT position
✅ Lodge BAS and PAYG on time
✅ Submit director loans/Div 7A documentation
✅ Plan for 2025–26 now

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Why Choose Trinity Accounting Practice

Since 2003, we’ve helped hundreds of businesses across NSW and Australia build better tax strategies. From construction and hospitality to health, childcare, and professional services, our team offers:

• Expert local advice
• After-hours appointments
• Xero & MYOB advisory
• End-to-end support in bookkeeping, payroll, tax, compliance & consulting

Let’s plan smarter — not just harder.
📞 Call 02 9543 6804 or book online: https://calendly.com/ramy-hanna

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