As 30 June draws closer, now’s the time to take stock, and action. A little planning before year-end can go a long way towards reducing tax, boosting super, and making sure you’re on the right foot for FY26.
Here’s our wrap-up of strategies, reminders and traps to avoid — whether you’re a business owner, investor or employee.
Tax planning: where to start
Start with a tax forecast
The first step we always recommend is to get clear on your current tax position. Here’s how:
- Forecast your expected profit for the 2025 financial year
- Calculate the tax payable on that forecasted profit
- Subtract any Pay-As-You-Go (PAYG) instalments you’ve already made
This gives you a solid baseline. From there, we can look at what actions to take before 30 June to improve your outcome.
If it turns out you’ve overpaid tax, you may even be able to vary your June PAYG instalment to get a refund before lodging your tax return.
Make the most of your super cap
The deductible super cap is now $30,000 for everyone under 75. Individuals need to pass a work test if over 67. You may also be able to carry forward unused cap amounts from prior years — the clock’s ticking on 2020 amounts, they expire this year.
SMSF strategy: double dip a deduction
If you’re in an SMSF and want a bigger deduction this year but not next, you may be able to use a contribution reserve strategy to claim up to $60K in FY25.
Super contributions for lower incomes
If either you or your partner is on a lower income, there are two ways to give your super a boost — and get rewarded for it.
- You could receive up to $540 as a tax offset if you make a super contribution for your spouse (earning under $40,000).
- Or, if you earn under $45,400 and make a personal (non-concessional) contribution, the government may chip in with a co-contribution of up to $500.
Small business tactics
Prepay expenses
If you’re eligible for the Small Business Income Tax Concessions, prepay up to 12 months of interest, rent, subscriptions or insurance and claim a deduction this year.
Write off obsolete equipment
Got assets on your depreciation schedule that you no longer use? Scrap them and claim the deduction before 30 June.
Bring forward spending / delay income
Purchasing consumables or paying for repairs before EOFY can boost deductions. If cash flow allows, consider deferring income (e.g. delaying invoicing) until July.
Instant asset write-off
For eligible businesses, up to $20,000 per asset can be written off if purchased and installed by 30 June. Great timing for equipment upgrades.
Motor Vehicle Logbook
Ensure that you have kept an accurate and complete Motor Vehicle Logbook for at least a 12-week period. The start date for the 12-week period must be on or before 30 June 2025. You should make a record of your odometer reading as at 30 June 2025 and keep all receipts/invoices for your motor vehicle expenses. Once prepared, a logbook can generally be used for a 5-year period.
An alternative (with no logbook needed) is to simply claim up to 5,000 business kilometres (based on a reasonable estimate) using the cents per km method.
For property owners & investors
Rental property deductions under scrutiny
The ATO is paying close attention to holiday home claims and redraws. Only claim deductions when the property is genuinely available for rent — and only the loan portion used for investment purposes.
Know the difference: repairs vs improvements
Repairs from rental wear and tear? Deductible. Replacing an asset or making structural improvements? These are capital works and claimed over time.
Work from home? Keep records
The ATO has flagged WFH claims this year. Whether you use the fixed rate (67c/hour) or actual expenses method, you must keep a detailed log of your work hours and receipts.
Capital gains timing
Selling an investment? The contract date determines when the gain is taxed — not the settlement date. Strategic timing could shift your tax bill into the next financial year.
Don’t Get Caught: Common Tax Traps
Even smart operators can fall into these EOFY traps — here’s what to double check:
- Sold an asset you wrote off 100%? The sale price is now taxable income — and new assets may not be immediately deductible.
- Trusts: Resolutions must be signed before 30 June to decide who will receive the trust’s income for the year. The ATO is also cracking down on distributions to adult children — especially if the funds are not actually paid to them but used elsewhere.
- Division 7A: Borrowed from your company? Ensure repayments are made or formal loan agreements are in place.
- FBT: If you’ve provided perks to employees — cars, entertainment, parking; lodge a return (even if NIL) to limit ATO review periods.
- Work from home: Estimates won’t cut it. Keep exact logs or risk denied deductions.
- Rental property redraws: Redrawing for personal use makes interest partially non-deductible — and the ATO is matching data.
- Joint property claims: Deductions must match legal ownership, not who paid.
- Repairs at purchase on an investment: These aren’t deductible. They’re capital and must be claimed over time.
ATO Focus Areas for 2025
- Division 7A loans & trust distributions
- Misreported FBT or employee benefits
- Capital gains calculations & restructure rollovers
- GST on real property sales
- Non-arm’s length income in SMSFs
EOFY isn’t about panic. It’s about planning. We love seeing clients take control, save tax and head into FY26 feeling confident — not caught off guard.
Keen to get ahead before 30 June? Let’s forecast your position and explore the smart ways to reduce tax.
Book a time with the Bec or give us a call.
