As the financial year draws to a close, smart tax planning can significantly impact your bottom line. To maximise your EFOY outcomes it involves planning, documentation and legitimate strategies in planning for your year-end tax position.
We’ll cover critical strategies to help you:
- Optimise tax deductions
- Ensure documentation is prepared
- Minimise unnecessary liabilities
- Remain compliant with the latest ATO changes
Essential Year-End Actions
- Asset Purchases: Ensure assets are installed and ready for use before June 30 to be eligible for deductions.
- Trust Distribution Minutes: Must be prepared, signed, and dated by 30 June. Failure to do so may result in trust income being taxed at 47%.
- Superannuation Timing: Super is only deductible once paid. Ensure June contributions are processed before EOFY if you want a deduction this FY.
Know Your Tax Position
Review your estimated tax position before 30 June to make informed decisions and maximise allowable deductions.
For assistance on this, get in touch with one of our tax professionals at Quantaco.
Plan Your Future Cash Flow
Forward plan for upcoming tax liabilities to avoid surprises and better manage your financial obligations over the next 6–12 months.
For assistance on this, get in touch with one of our tax professionals at Quantaco.
Leverage a Quantity Surveyor
Unlock potential depreciation deductions on building and plant assets by engaging a qualified quantity surveyor at the right time:
- When purchasing a significant asset
- Before major renovations
- After removing or replacing depreciable assets
ATO Interest Deductibility Changes
From 1 July 2025, interest charges (including general and shortfall interest) from the ATO will no longer be tax-deductible.
Key actions include:
- Aim to resolve outstanding ATO debts by 30 June 2025
- Finalise audits/objections promptly to retain deductibility
- Reassess and possibly shorten ATO payment plans
- Seek other forms of financial assistance outside of the ATO
- Use tax payment forecasting to manage future obligations
Fringe Benefits Tax (FBT)
Understand your responsibilities of offering non-cash benefits like the use of company vehicles. Employers are liable for FBT, even if benefits are provided via third parties.
Individual Tax Considerations
Three common tax elements to better understand and consider – personal concessional contributions, working from home, and motor vehicle usage.
- Personal Concessional Superannuation Contributions. You can claim a personal tax deduction (ensure to notify your superannuation fund of this intention). Tax on entry into your super of 15% (30% for those taxpayers subject to Division 293 assessments). Concessional cap limit for the 2024/2025 financial year is 30,000.
- There are two methods for calculating working from home expenses,
- Actual Cost Method
- This requires calculating and substantiating actual expenses. You must keep a detailed record, such as bills receipts and work-related use evidence.
- Fixed Rate Method
- There Is a fixed rate that is dependent on the year of what you can claim for each hour worked from home. For the 2024/2025 financial year 70 cents/per hour worked from home.
- Motor vehicle usage, there are generally two methods used in Australia to calculate this.
- Cents per kilometre method
- There is a fixed cent/km up to 5000km per car per year. In the 2025 financial year this is 88 cents/km. There is no logbook required, but you must keep a record of the related travel and its work-related purpose.
- Logbook method
- Claim work related percentage of actual car expenses. This requires a record of all car expenses incurred during the FY, then a claim can be made based on a logbook recorded for a 12-week consecutive period (valid for up to 5-years).
For personalised assistance with implementing these strategies, connect with our Compliance & Platform Services team at [email protected] or call 1800 940 952.