Defer Income Where Appropriate
If you have received income in advance of work being performed, the unearned portion may be deferred to next year.
Prepay Expenses
Rent, insurance, and subscriptions can usually be prepaid for up to 12 months to bring the deduction into this year.
Instant Asset Write-Off
The instant asset write-off for depreciating assets costing less than $20,000 was extended to 30 June 2025 and applies to small businesses with an aggregated turnover of less than $10 million. This includes both new and second-hand assets.
Pay Super Early
Super must be received by the fund before 30 June to be deductible. Therefore, we advise making payment by 20 June to ensure it is received on time. For personal super contributions, the current cap is $30,000 but catch-up contributions may be available if your total super balance is under $500,000. To claim a personal contribution as a tax deduction you need to let your fund know.
Superannuation for Contractors
Review your arrangements with contractors and consider whether superannuation needs to be paid. Remember, a contractor may be considered an employee for super purposes only.
Finalise Trust Distributions
As a trust cannot retain profits, a trust resolution is required to be prepared by 30 June to ensure beneficiaries are made entitled to the trust’s income. Trust distribution resolutions must be signed before 30 June.
Private Company Loans
Business owners who have borrowed funds from their company may choose to make the minimum repayment required before 30 June to avoid or reduce the need for dividends.
Logbooks & Odometer Readings
If you’re claiming vehicle expenses via the logbook method, don’t forget to record your odometer reading at 30 June.
Structure Review
Is your current business structure the right one for you? Does it still meet your needs for growth, risk, and tax efficiency? Having a new structure in place and ready to go by 1 July will help ensure any transition is a smooth one. Please talk to us if this is a consideration for you.
Stock take
Complete a stock take at 30 June. The ATO allows a business to value its closing stock using any of the following methods
- Replacement value
- At cost
- Market selling value
Electric Vehicles and FBT Exemptions
Providing an electric vehicle to an employee? If the car is under the luxury car threshold ($91,387 in 2025 for fuel efficient vehicles), it may be exempt from Fringe Benefits Tax (FBT).
Individual Super Considerations
- Maximise Concessional Contributions: Up to $30,000 annually (higher if unused caps from prior years are available under catch-up rules).
- Non-Concessional Contributions: Consider making up to $120,000 annually (or $360,000 using the 3-year bring-forward rule).
- Downsizer Contributions: If aged 55+ you can contribute up to $300,000 to super from selling your main residence (if owned for 10 years+) without impacting contribution caps.
- Division 293 Tax: If your income exceeds $250,000, please note there will be a 15% surcharge on all concessional super contributions.
Capital Gains Management
If you have made a capital gain during the year, it might be worth evaluating other assets you hold. If any are in a loss position, you may consider selling these assets to reduce your capital gains tax exposure. Note that individuals have access to the 50% capital gain concession if they hold an asset for more than 12 months.