Learn how to Maximise Your Tax Return & Minimise Your Tax Bill
As the 2025 financial year concludes on 30 June, it’s important for businesses and individuals to manage their tax affairs promptly. Whether you’re aiming to boost your tax refund or reduce the amount of tax you owe, this comprehensive EOFY checklist will guide you through the essential steps to optimise your financial outcomes and prepare for your income tax returns.
EOFY Tax Planning Strategies for Individuals
1. Maximise Superannuation Contributions
- Concessional Contributions Cap: From 1 July 2024, the concessional contributions cap has increased to $30,000. Making additional contributions before 30 June 2025 can reduce your taxable income.
- Carry-Forward Unused Caps: If your total super balance is under $500,000, you may be eligible to carry forward unused concessional contributions from the previous five years.
2. Claim Work-Related Deductions
- Work-from-Home Expenses: The ATO allows a fixed rate of 70 cents per hour for extra running expenses you may have incurred while working from home. Ensure you maintain a detailed record of hours worked.
- Other Deductions: Consider claiming expenses related to uniforms, self-education, and professional memberships, provided they are directly related to your employment.
3. Prepay Deductible Expenses
- Prepaying certain expenses, such as income protection insurance, subscriptions, or professional memberships, before 30 June can bring forward deductions and reduce your taxable income for the current financial year.
4. Review Investment Portfolios
- Capital Gains and Losses: Offset capital gains with capital losses where possible. Be cautious of “wash sales,” which involve selling and repurchasing the same asset to create a loss, as the ATO scrutinises these transactions.
- Dividend Income: Ensure you report all dividend income, including any franking credits, as these can impact your tax liability.
EOFY Tax Planning Strategies for Businesses
1. Utilise the Instant Asset Write-Off
Businesses with an aggregated turnover of less than $10 million can immediately deduct the cost of eligible depreciating assets costing less than $20,000, provided the assets are first used or installed ready for use by 30 June 2025.
2. Conduct a Thorough Stocktake
Identify and write off obsolete or slow-moving stock to claim a deduction and ensure your inventory records accurately reflect your current stock levels.
3. Review and Write Off Bad Debts
Assess your accounts receivable and write off any genuinely bad debts before 30 June to claim a tax deduction. Ensure proper documentation is maintained to substantiate the write-off.
4. Prepay Business Expenses
Small businesses can claim immediate deductions for prepaid expenses covering a period of 12 months or less, such as rent, insurance, and subscriptions, if the payment is made before 30 June.
5. Ensure Superannuation Contributions Are Paid
To claim a deduction for employee superannuation contributions, ensure payments are made and received by the super fund before 30 June. Late payments are not deductible until the next financial year.
Common EOFY Mistakes to Avoid
- Inaccurate Record-Keeping: Ensure all income and expenses are accurately recorded and substantiated with appropriate documentation.
- Missing Deadlines: Late lodgement of tax returns or superannuation contributions can result in penalties and loss of deductions.
- Overlooking Deductions: Regularly review potential deductions to ensure you’re not missing out on legitimate claims.
- Neglecting to Seek Professional Advice: Tax laws can be complex and subject to change. Consulting with a registered tax agent can help you navigate the intricacies and optimise your tax position.
Simple Tax Calculator
Click here to visit the calculator on the ATO website
Need Assistance with Your EOFY Planning?
At Master Accounting, we’re committed to helping you navigate the complexities of the Australian tax system. Our experienced team can provide personalised advice tailored to your individual or business needs, ensuring you make the most of available deductions and concessions.
Contact us today to schedule a consultation:
- Phone: (07) 55 202 390
- Email: office@masteraccounting.net.au
- Address: 2c/34 Tallebudgera Creek Road, West Burleigh QLD 4220
Alternatively, head over to our Enquiries page to send us a message!