2025 EOFY Tax Planning Guide for Businesses & Individuals

As the end of the financial year (EOFY) approaches, it’s crucial for businesses and individuals to engage in effective tax planning to maximize savings, reduce your tax payable, and ensure compliance with tax regulations. This guide outlines key strategies and considerations for EOFY tax planning for both businesses and individuals for the financial year  2024/2025.

Get in touch to receive our comprehensive 2025 EOFY Tax Planning Document for Businesses and Individuals.

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For Businesses

1. Review and Update Financial Records:

• Gather all financial records, including income statements, balance sheets, and expense reports.​
•  Ensure accuracy and completeness of records to facilitate smooth tax filing. 

2. Take Advantage of Deductions

• Identify deductible expenses such as salaries, wages, rent, utilities, rental property costs (if applicable), and business-related purchases.​
• Consider making necessary purchases before the financial year EOFY to claim deductions in the current financial year.

3. Superannuation Contributions​​

• Review and maximize super fund contributions for employees, including any additional contributions for owners or directors. ​
• Ensure contributions are made before the financial year to qualify for tax deductions and avoid penalties.​​

4. Asset Depreciation and Write-offs:​

•  Assess the depreciation of business assets and consider any potential write-offs for obsolete or unused assets. ​
• Utilize the small business instant asset write-off scheme if eligible to claim immediate deductions for asset purchases.​

5. Review Capital Gains and Losses: ​

• Evaluate capital gains tax obligations and capital losses from investments or asset sales throughout the financial year.
• Consider offsetting capital gains with capital losses to reduce your tax payable.

6. Seek Professional Advice:

• Consult with a qualified tax agent to optimize tax planning strategies, explore industry-specific concessions, and ensure compliance with tax laws.
• Explore any specific tax incentives or concessions applicable to your industry or business structure.

For Individual Tax Plan:​​

1. Organize Personal Finances: 

• Gather relevant financial documents, including income statements, bank statements, investment records, and receipts for rental property expenses or other costs eligible for claiming a deduction.​

2. Maximize Deductions:

• Identify eligible deductions such as work-related expenses, charitable donations, rental property maintenance, education expenses, and medical expenses.​
• Keep detailed records and receipts for 12 months or longer to support claiming a deduction.​

3. Contribute to Retirement Funds:

• Consider making additional contributions to your super fund before the financial year to maximize tax benefits and secure retirement savings.​
• Stay within the concessional contributions cap to avoid excess fees.​

4. Capital Gains and Losses: ​

• Review capital gains tax obligations and capital losses from investment activities, including shares, property, and other assets.​
• Offset gains with losses to reduce your tax payable.​

5. Prepay Expenses: 

• Prepay deductible expenses such as interest on investment loans, insurance premiums, and professional membership fees before the financial year EOFY to claim deductions in the current financial year. ​

6. Utilise Tax Offset and Rebate Opportunities:

• Explore available tax offsets and rebates, including the low and middle-income tax offset (LMITO), senior Australians and pensioners tax offset (SAPTO), and other government incentives. ​
• Ensure eligibility criteria are met to claim applicable offsets and rebates.

7. Bring Forward Deductions:

• Taxpayers who own investment properties or have an investment portfolio margin loan may consider prepaying interest up to 12 months in advance and claiming a deduction in the 2025 year for the prepayment.

8. Managing Capital Gains Exposure:

• Review any capital gains made during the financial year. If you have had a capital gains tax event, evaluate other assets you hold in a loss position and consider if it’s the right time to sell these to reduce capital gains tax exposure.

9. Superannuation Contributions – Concessional Contributions:

• Just before the financial year end is a great time to review your superannuation contributions. If you have excess cash, consider topping up your super fund. You can contribute up to $30,000 per annum, which is deductible against your income tax.

Seek Professional Advice for EOFY Tax Planning

Effective EOFY tax planning is essential for businesses and individuals to optimise tax outcomes, reduce your tax payable, and ensure compliance with tax regulations. Seeking a professional tax service can provide tailored strategies to maximise deductions and maintain compliance. By implementing the strategies outlined in this guide and consulting a tax agent where necessary, taxpayers can streamline their tax return, make informed decisions, and achieve their financial goals.

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