EOFY 2025 Tax Planning Guide for Australian Businesses | Trinity Accounting Practice
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 is not just about reducing tax. It is 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. Whether you are a sole trader, a company director, or a trustee, taking a proactive approach to tax planning can make a significant difference to your bottom line.
Understand the Tax Planning Timeline
Tax planning is not a once-a-year activity. The most effective strategies are implemented across the full financial year.
Early-Year Planning (July to September)
- Review last year's tax outcomes and identify areas for improvement
- Set forecasting goals for the year ahead
- Plan for potential asset purchases or capital expenditure
Mid-Year Assessment (October to February)
- Check in on your current tax position
- Track superannuation contributions against the annual cap
- Adjust salary packaging or PAYG instalment estimates if needed
Pre-Year-End Strategy (March to June)
- Bring forward deductible expenses where cash flow allows
- Defer income if it is viable and will result in a better tax outcome
- Review unrealised capital gains or losses before 30 June
Our Virtual CFO division, VCFO Australia, works with businesses throughout the year to ensure tax planning is embedded in broader financial strategy, not left until the last minute.
Take Advantage of the $20,000 Instant Asset Write-Off
Small businesses with an aggregated turnover of less than $10 million can immediately deduct the cost of eligible assets costing less than $20,000 each, provided the asset is first used or installed ready for use by 30 June 2025.
Eligible Assets Include
- Computers, laptops, and office equipment
- Tools, machinery, and trade equipment
- Vehicles (subject to the car depreciation cost limit of $69,674)
- Software subscriptions or upgrades
Action Steps
- Ensure assets are delivered, installed, and ready for use before 30 June 2025
- Document all asset details including purchase date, cost, and intended business use
- Consult with our team for correct treatment in your tax return, particularly where the asset has mixed personal and business use
If you are in the construction industry, this provision is particularly valuable for tools, safety equipment, and smaller plant items.
Bring Forward Expenses to Reduce This Year's Tax
Prepaying certain expenses before 30 June can bring forward deductions into the current financial year, reducing your taxable income.
Common Prepaid Expenses
- Rent (up to 12 months in advance)
- Business insurance premiums
- Interest on business loans
- Software and cloud service subscriptions
Before prepaying, review your cash flow position carefully. Prepaying only makes sense when it genuinely improves your tax outcome without putting unnecessary strain on working capital. Accurate bookkeeping throughout the year makes it easy to identify which prepayments will deliver the best result.
Maximise Superannuation Contributions
Superannuation contributions are one of the most effective tax planning tools available to business owners and individuals.
Contribution Caps for 2024-25
- Concessional (before-tax) contributions: $30,000 per year, including employer contributions, salary sacrifice, and personal deductible contributions
- Non-concessional (after-tax) contributions: $120,000 per year
All contributions must be received by your super fund before 30 June to count towards the current financial year. Do not leave this to the last business day, as processing times can vary.
Catch-Up Contributions
If you have not used your full concessional cap in previous years (from 2018-19 onwards), you may be eligible to carry forward unused amounts. To qualify, your total superannuation balance must be below $500,000 as at the previous 30 June.
This is a powerful strategy for business owners who have had lower-income years and now want to maximise their super contributions in a higher-income year.
Identify and Write Off Bad Debts
If your business has outstanding invoices that are unlikely to be collected, writing them off before 30 June allows you to claim a tax deduction.
Requirements
- The debt must have been previously included as assessable income
- The debt must be formally written off in your records before 30 June
- You should retain evidence of reasonable recovery efforts, such as reminder notices, emails, or phone call records
Review your aged debtors report as part of your year-end process. If you use Xero, our team can help you run the appropriate reports and process the write-offs correctly.
.jpg)
Review Depreciation and Asset Registers
Your asset register should be reviewed at least annually to ensure depreciation schedules are accurate and any obsolete or scrapped assets are removed.
What Small Businesses Can Do
- Use simplified depreciation rules available to small business entities
- Instantly write off assets costing less than $20,000 under the instant asset write-off
- Pool remaining assets into the general small business pool for accelerated depreciation
Action Steps
- Review your asset register and identify items no longer in use
- Reconcile depreciation schedules with your accounting software
- Scrap or dispose of obsolete items and claim any remaining book value as a deduction
Plan for Capital Gains and Losses
If you have sold or are considering selling business assets, shares, or property, capital gains tax planning should be part of your year-end strategy.
Key Strategies
- Hold assets for at least 12 months to qualify for the 50% CGT discount (for individuals and trusts)
- Offset gains with capital losses realised during the same financial year
- Defer a sale to the following financial year if your income is expected to be lower
- Small business CGT concessions may apply if your business meets the eligibility criteria, potentially reducing or eliminating the capital gain entirely
Our business advisory team can model different scenarios to help you determine the most tax-effective timing for asset disposals.
Evaluate Your Business Structure
The structure of your business directly affects how much tax you pay, your personal liability, and your ability to access certain concessions.
Questions to Consider
- Would a trust or company structure offer better asset protection?
- Is your personal liability exposure too high under your current structure?
- Are you eligible for the small business CGT concessions under your current arrangement?
- Could restructuring improve how profits are distributed among family members?
Restructuring is a significant decision with legal, tax, and commercial implications. We work with you to assess your current structure and provide recommendations that align with your long-term goals.
Understand Compliance Risks
The ATO continues to increase its compliance activity, particularly in the small business sector. Being aware of current focus areas helps you avoid penalties and unnecessary scrutiny.
Current Focus Areas
- Work-related expense claims that are inflated or unsupported
- Cash economy and unreported income
- Super guarantee non-compliance and late payments
- Incorrect GST claims and reporting
Best Practice
- Keep complete and accurate records throughout the year
- Use cloud accounting software such as Xero (we are certified Xero advisors)
- Lodge BAS, PAYG, and super on time every quarter
- Respond promptly to any correspondence from the ATO
Take Action on Trust Distributions and Dividends
If your business operates through a trust or company, there are important year-end actions that must be completed before 30 June.
For Trusts
- Trustee resolutions for the distribution of income must be documented and signed by 30 June
- Ensure distributions align with the trust deed and are made to eligible beneficiaries
- Be aware of Section 100A and ensure distributions reflect genuine entitlements
For Companies
- Review any Division 7A loans between the company and its shareholders or associates
- Ensure complying loan agreements are in place with minimum annual repayments made
- Declare and record any dividends properly in the company minutes
Industry-Specific Tax Tips
Different industries have unique deduction opportunities and compliance requirements. At Trinity Accounting Practice, we specialise in several key sectors.
Construction and Trades
- Claim vehicle costs, tools, safety gear, and protective clothing
- Review personal services income (PSI) rules if you operate as a contractor
- Ensure taxable payments annual reports (TPAR) are lodged correctly
Childcare
- Deduct food, educational resources, and occupancy costs
- Review employee benefits and fringe benefits tax obligations
Allied Health and Medical
- Claim uniforms, professional indemnity insurance, and membership fees
- Review depreciation on medical and diagnostic equipment
Forecast Next Year's Tax Now
The best time to start planning for the 2025-26 financial year is before the current year ends. Forward planning allows you to make informed decisions about income timing, investment, and growth.
Planning Should Include
- Reviewing income trends and identifying any expected changes
- Projecting PAYG instalment amounts based on current-year results
- Planning future superannuation contributions, including catch-up strategies
- Allocating research and development (R&D) tax offsets if your business is eligible
Our VCFO Australia division provides ongoing budgeting, forecasting, and strategic financial management to help you stay ahead of your tax obligations year-round.
Final Checklist Before 30 June 2025
- Book a year-end review with Trinity Accounting Practice
- Finalise payroll and ensure all superannuation contributions are received by your fund
- Write off any bad debts formally in your records
- Prepay deductible expenses where cash flow permits
- Consider asset purchases under the $20,000 instant asset write-off
- Complete and sign trustee resolutions for income distribution
- Review capital gains and losses and consider timing of any planned disposals
- Lodge all outstanding BAS and PAYG statements
- Address any Division 7A loan issues
- Begin planning for the 2025-26 financial year
Why Choose Trinity Accounting Practice
Since 2003, we have supported hundreds of businesses across New South Wales and Australia with tailored tax strategies. We work closely with clients in construction, childcare, medical and allied health, hospitality, and professional services.
Our services include Xero advisory, bookkeeping and payroll, tax compliance, and business consulting. We also offer weekend and after-hours appointments to fit around your schedule.
If you need finance for asset purchases or business expansion before 30 June, our mortgage brokerage division, Nexus Wealth Partners, can assist with equipment finance, business lending, and refinancing.
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
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
Discover the industries we specialise in
Read more tax and accounting tips on our blog
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.
