Proactive EOFY Tax Strategies for Australian Businesses in 2025
At a glance
With 30 June rapidly approaching, many business owners across Australia are focusing on end-of-financial-year planning. The good news? Strategic tax planning now can significantly reduce your tax burden while setting your business up for future growth.
At Inspired Accounting, we've seen first-hand how proactive planning makes a substantial difference to our clients' bottom line. The key is knowing which strategies to prioritise for your specific business situation.
Effective Tax Strategies Before 30 June
These actionable strategies can deliver meaningful tax benefits when implemented before the EOFY deadline:
1. Bring Forward Deductible Expenses
One of the most effective strategies is to prepay expenses that would otherwise fall into the next financial year. This could include:
Prepaying up to 12 months of rent, insurance premiums, or subscriptions
Staff training or professional development investments
Marketing expenses for campaigns planned in the new financial year
Important note: While prepaying expenses can be beneficial, purchasing equipment may not always be fully deductible depending on the value and your business size. Always consult with your accountant before making significant purchases.
2. Review Inventory and Write Off Obsolete Stock
Many businesses are sitting on obsolete, damaged, or slow-moving inventory that can be written off before EOFY:
Conduct a thorough stocktake to identify unsaleable items
Document and dispose of obsolete stock according to ATO guidelines
Consider donating usable but unprofitable items to charity for potential additional benefits
3. Superannuation Strategy
Superannuation contributions remain one of the most tax-effective strategies available:
Ensure all employee superannuation obligations are paid before June 30
Consider paying concessional contributions to your own superannuation fund pre 30 June
Remember contribution caps apply: $30,000 per person for concessional contributions in the 2024-2025 financial year
Tip:: Check with your Superannuation clearing house for the last date contributions need to be paid to be processed prior to 30 June.
4. Leverage the $20,000 Instant Asset Write-Off
The instant asset write-off allows eligible businesses to immediately deduct the cost of business assets:
Available for businesses with aggregated turnover less than $10 million
Assets must cost less than $20,000 each (exclusive of GST)
Must be first used or installed ready for use between 1 July 2023 and 30 June 2025
Can include vehicles, equipment, technology, and other business assets
Note: This measure is scheduled to end on 30 June 2025, making this financial year an important opportunity to utilise the provision.
5. Review Shareholder and Director Loan Accounts
For companies, the end of the financial year is an ideal time to review and manage loan accounts:
Consider repaying any outstanding shareholder or director loans before June 30 to avoid potential Division 7A implications
Clearing these loans could reduce any dividends required to be paid to shareholders
Declaring franked dividends prior to 30 June could ensure that income comes with attached tax credits, potentially reducing personal tax liability
Ensure all loan agreements are properly documented and on commercial terms if they will remain outstanding
Tip: Review your loan accounts quarterly rather than annually to avoid last-minute surprises and give yourself adequate time to plan repayment strategies that align with both business and personal cash flow needs.
The Cost of Reactive vs. Proactive Tax Planning
The difference between reactive and proactive tax planning is substantial. Here's what we've observed among our clients:
The Reactive Approach
Businesses that only consider tax implications at EOFY typically:
Miss opportunities for strategic timing of income and expenses
Pay an average of 12-18% more tax than necessary
Experience cash flow challenges due to unexpected tax bills
Feel increased stress and uncertainty around financial matters
The Proactive Advantage
Businesses with proactive tax strategies typically:
Have greater certainty around tax obligations
Make business decisions with full awareness of tax implications
Experience fewer ATO issues or queries
It's Time to Act
Proactive tax planning delivers significant benefits when implemented thoughtfully. The key is to act with expert guidance tailored to your specific business situation.
At Inspired Accounting, we specialise in providing practical, actionable advice that delivers immediate results while building towards your long-term goals.
Our proactive approach ensures you never miss an opportunity to optimise your tax position.
Your Next Steps
Schedule a strategic planning session to identify the highest-impact actions for your business before EOFY
Implement targeted tax-saving opportunities specific to your situation
Book a comprehensive planning session for the new financial year
Don't let another financial year end without maximising every opportunity available to your business. Contact Inspired Accounting today to ensure you're not paying a cent more tax than necessary.
Important Note: The information provided in this article is general in nature and does not constitute financial or tax advice. This information has not been prepared taking into account your specific objectives, financial situation or needs. Before acting on any information in this article, you should consider its appropriateness to your circumstances and consult with a registered tax agent or financial advisor.
Grow and protect your business - the Inspired way
Inspired Accounting helps ambitious businesses achieve their growth goals through proactive accounting strategies and clear, actionable advice.
Phone us: 0409 383 855