Prepare Your Business for the End of the 2025 Financial Year
As the end of the 2025 EOFY approaches, now is an ideal time for business owners to review their upcoming financial and tax
position. Without a solid tax strategy, you risk paying the ATO more than you should, missing out on savings, or facing penalties for
non-compliance. Furthermore, tax regulations can be complex and constantly changing, which makes it essential to have a clear strategy
tailored to your business’s financial situation.
However, effective tax planning isn’t just about reducing liabilities — it’s about improving cash flow, staying compliant, and setting the
foundation for future growth. The right strategies can lead to substantial savings, but knowing which ones to apply (and how) can be
tricky. That’s where working with a professional accountant can make all the difference. A strategic tax plan ensures you're not
leaving money on the table while also protecting your business from costly mistakes and ATO scrutiny.
That's why we have summarised these 5 essential strategies to help you minimise your tax debt this financial year:
👉 Need expert guidance to maximise your EOFY tax savings? Use the button below to schedule a consultation and take control of your tax
position.
1. Maximise Deductions Through Smart Spending
One of the most effective ways to minimise your tax liability is by maximising your deductions. Australian tax law allows businesses to claim a wide range of expenses, but many SMEs overlook legitimate opportunities.
Eligible deductions include:
The Instant Asset Write-Off is especially valuable. For the 2025 financial year, businesses can immediately deduct the cost of eligible assets (like computers, office furniture, and vehicles) up to the threshold set by the ATO. This allows you to reduce taxable income while improving business infrastructure.
However, tax law around deductions can be complex. Consulting with an experienced accountant can help you identify additional deductions you may have missed and ensure your claims are fully compliant with ATO regulations. Don’t leave money on the table — let us help you maximise your savings.
2. Make Strategic Superannuation Contributions
Superannuation contributions are a powerful tax-reduction tool for both employers and business owners. Contributions to employee super funds are tax-deductible when paid before June 30 — but timing is critical.
For the 2025 financial year, the concessional contribution cap is $27,500. If you haven’t maximised this, consider making additional voluntary contributions. Business owners who operate as sole traders or in partnerships can also contribute to their own superannuation and claim a personal deduction.
Superannuation rules are complex and change regularly. A professional accountant can advise you on the most effective way to structure your super contributions to optimise both your tax position and retirement benefits.
3. Write Off Bad Debts to Improve Cash Flow
Bad debts can have a significant impact on your business’s cash flow and tax position. If you have outstanding debts that are unlikely to be recovered, writing them off before June 30 can provide immediate tax relief.
To qualify as a bad debt, you must be able to demonstrate that:
Documenting the process correctly is key to making a successful claim. An accountant can help you determine whether debts qualify for write-off and ensure that the proper records are maintained for ATO compliance.
4. Defer Income to Manage Your Tax Bracket
Strategic income deferral can reduce your tax liability if your business expects to remain stable or experience lower income in the following year. If you anticipate that your taxable income will decrease or that tax rates may be more favourable next year, deferring income until after June 30 could save you money.
Here’s how you can defer income legally:
Income deferral needs to be carefully planned to avoid cash flow issues and compliance problems. An accountant can help you structure your revenue recognition strategy to maximise tax benefits without putting your business at risk.
5. Plan for Capital Gains and Losses
If your business has made a capital gain from the sale of an asset (e.g., property, shares, or business equipment), you can reduce your tax burden by offsetting it against capital losses.
Key strategies include:
The timing of these transactions matters. If you sell an asset before June 30 and it results in a capital loss, it can reduce your taxable income. However, the ATO has specific rules around wash sales (where you sell and immediately buy back the same asset), so professional advice is essential to avoid penalties.
Why Professional Tax Planning Matters
Tax planning is not a one-size-fits-all approach — and mistakes can be costly. Partnering with a professional accounting firm ensures that you’re not only reducing your tax liability but also protecting your business from ATO penalties and compliance issues.
A strategic tax plan will give you:
✔️ Greater cash flow control
✔️ Reduced risk of ATO audits
✔️ Confidence that you're maximising your legal deductions
📅 The EOFY deadline is fast approaching — don’t leave it until the last minute. Schedule a consultation with our team today to ensure your business is fully prepared.
