Preparing your business for the new financial year

Every new financial year comes with a list of must-do tasks, but 2026-27 is bringing  a range of fresh challenges for SMEs arising from the start of Payday Super and  major changes announced in the May Federal Budget.

Following the global trend, the Budget made it clear that tax integrity and transparency is now a key issue, so SMEs need to ensure their tax structures have genuine commercial purpose and are justifiable.

This was further emphasised by the additional $700 million in compliance funding the ATO received for increased audits, data matching and greater scrutiny.i

Practical implications of the Federal Budget

The Budget reforms mark a significant change to the way many businesses have been operating and will require careful reassessment of everything from business structures to the way income is distributed to owners.

The reform requiring the most urgent attention is replacement of the existing 50 per cent CGT discount with inflation-adjusted indexation and introduction of a 30 per cent minimum tax rate for real capital gains from 1 July 2027.ii

Assets purchased and sold before 1 July 2027 will still be taxed under the existing rules, with capital gains made prior to 30 June 2027 calculated under the old rules.

The new rules apply to individuals, trusts, partnerships and companies and affect all CGT assets (including property and shares), managed funds, business assets and private company interests.

A key point to note is the new CGT rules do not impact availability of the four special CGT concessions available when owners exit a SME.

And, following many protests in the wake of the Budget, the government announced further CGT concessions for small businesses.iii

The turnover threshold for the 50 per cent active asset CGT reduction  increased from $2 million to $10 million from 1 July 2027.

Family trusts face tax changes

SMEs using discretionary (family) trusts for income splitting, asset protection and estate planning will need to review the new rules covering these structures, as they may now be less attractive than in the past.

From 1 July 2028, a new 30 per cent minimum rate on the taxable income of discretionary trusts will be introduced.

Trustees will pay the tax at trust level prior to distribution to beneficiaries, with non-corporate beneficiaries receiving non-refundable tax credits for the tax payments.

SMEs currently using these structures should consider whether their trust remains appropriate and if not, begin planning how to restructure into a new vehicle. The government is providing a rollover relief window from 1 July 2027 to 30 June 2030 for trust users restructuring into a company or fixed unit trust.

Meanwhile, since the Budget, the government has announced a carve out for testamentary trusts, exempting them from the minimum tax requirements.iv

The Federal Government recently announced a ban for Self-Managed Superannuation Funds (SMSFs) from using Limited Recourse Borrowing Arrangements (LRBAs) to purchase residential property in the future. Existing LRBAs are not affected.

Change to negative gearing rules

Another Budget change requiring attention relates to negative gearing for residential property investments, which will be limited to new builds from 1 July 2027. Arrangements remain unchanged for assets owned prior to 7.30pm on Budget night.v

Under the new rules, losses from residential property investments can only be offset against residential rental income or capital gains from residential property, not wages or other income. Excess losses can be carried forward.

While residential property investments you hold will be impacted, commercial property, shares and non-residential assets can still be negatively geared.

Payday Super arrives

This financial year represents the first year SMEs will be dealing with the new Payday Super rules.

The key implication relates to business cash flow, particularly if your business has previously been making Super Guarantee contributions quarterly and holding these funds to boost the business’s cash position prior to payment.

SMEs need to ensure they meet the new reporting requirements introduced as part of Payday Super to avoid compliance problems with the ATO.vi

Instant asset write-off change

One of the good news stories from the Budget is the popular $20,000 instant asset write-off is permanent from 1 July 2026.vii

SMEs can now be certain the concession is available and can plan business expenditure accordingly.

Small businesses with an aggregated turnover up to $10 million can immediately deduct eligible assets costing less than $20,000.

If you have any questions, contact our office today. i Federal Budget 2026 | Corrs Chambers Westgarth
ii Small business explainer | Treasury.gov.au
iii,iv Tax reform implementation for small business and startups | Prime Minister of Australia
v Tax reform for workers, businesses and future generations | Prime Minister of Australia
vi Our compliance approach for Payday Super | Australian Taxation Office
vii Tax reform | Budget 2026–27

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Tax-deductible expenses for sole traders to watch for

Are you a sole trader? Here are some tips on deductible expenses to watch for.

If you haven’t spoken to us or your bookkeeper about EOFY matters yet, it might be a good idea to give us a call.

After all, you’ve done the thinking and the work, and are probably desperate to keep a little more of that hard-earned profit. However, being self-employed, you must first understand the nature of your expenses.

What deductions can I claim as a sole trader?

You can claim expenses that are directly related to earning your taxable income. Private and personal expenses, such as after-school care or home loan interest payments, cannot be claimed.

The expenses you can claim — and when you claim them — depends on the type of asset purchased or service engaged. Operating expenses for a sole trader can usually be claimed in the year they occur, while capital expenses must be claimed over time.

Business vs personal expenses

Expenses that are usually not deductible

  • Entertainment expenses
  • Traffic fines
  • Private or domestic expenses, such as childcare fees or clothes for your family
  • Expenses relating to earning income that is not assessable, such as money you earn from a hobby
  • The GST component of a purchase if you can claim it as a GST credit on your business activity statement

Expenses that may be deductible

  • Wages
  • Office stationery
  • Computer or laptop that is used for business
  • Machinery and equipment
  • Motor vehicle expenses
  • Advertising
  • Business travel
  • Bills, like insurance and phone

How can a sole trader pay less tax?

1. Claim operating expenses when you incur them

Operating expenses are also called revenue expenses because they help generate income, and they can be claimed in the financial year you incur them. Examples of claims that can be made in the year they are incurred include:

  • Salaries, wages, overtime payments, allowances and bonuses
  • Advertising and promotional expenses
  • Electricity, phones, gas and stationery
  • Business travel costs
  • Asset maintenance and repair costs
  • Parking fees (but not fines)

2. Prepay some expenses this year to reduce taxes

Pay in advance and bring the deduction forward to this year. If you have a healthy cashflow, you can prepay your:

  • Business loans (prepay on fixed rates 12 months in advance)
  • Office and equipment lease payments
  • Business insurance
  • Business related subscriptions
  • Business travel, seminars and conference bookings
  • Telephone and IT services

Tip: Two birds with one stone — See if you can combine the benefit of bringing forward the tax deduction and getting a discount for paying your supplier in advance.

For every small business looking for a tax deduction, there will most likely be a service provider or salesperson looking to boost their sales results before June 30.

3. Consider capital expenses (asset purchases)

It’s important to mention that a small business that purchases an asset costing less than $6500 can still claim 100 percent of the cost in the actual year the expense is incurred.

Even if you have not paid for the item yet, sole traders can still claim as long as you are invoiced before 30 June.

Larger capital acquisitions that have an expected life longer than one year, such as IT servers, vehicles and expensive plant and equipment, must be claimed over a number of years.

These items are claimed via accelerated depreciation of the capital value, with 15 percent claimed in the first year (even if purchased in the last month of the year) and 30 percent each year thereafter.

Examples of capital expense assets that must be depreciated over time include:

  • Motor vehicles
  • Computers, servers, printers and copiers
  • Office and warehouse fixtures and fittings
  • Plant and equipment

4. Claim the instant asset write-off

Sole traders are eligible to claim the instant asset writeoff, which allows small businesses to claim immediate deductions for new or second-hand plant and equipment asset purchases like cars, office equipment and tools.

Before making any big purchases, check the instant asset write-off eligibility criteria and threshold, because these can change. Check your business’s eligibility and apply the correct threshold amount depending on when the asset was purchased, first used or installed ready for use.

Check the ATO website for the latest information on thresholds.

5. Bite the bullet and write off any bad debts

A bad debt is a taxable sale you made that has been unpaid for 12 months or more, with no chance of it being recovered.

You must keep written notes that the debt has been written off and why. Discuss this with your accountant, as there may be GST consequences.

6. Use concessional contributions to superannuation

Make sure to use your own superannuation allowance of up to $25,000 for those under 60, and $35,000 for those over 60.

Remember that if your spouse works in the business even part-time then you can still contribute up to their limit, but make sure to allow for any employer contributions from other jobs.

7. Do a stocktake

It might be time to call in the kids, parents and friends to help you identify damaged and/or obsolete stock items that can be written down in value or written off completely.

This reduces the value of your trading stock and, as a result, lowers your taxable business profit.

8. Be sensible

As a sole trader, your focus should be on managing your tax and not looking at measures that will put your business under cash flow pressures in the coming years, just to achieve a short-term tax advantage.

Buying unnecessary assets, upgrading cars or paying higher super contributions are pointless if it means your business will face cash flow issues.

As you enter a new financial year, consider speaking to us about whether you should be moving to a corporate structure going forward.

There’s an app for that

You’re not just a sole trader or freelancer, you’re the finance department, marketing head, coffee runner and admin ninja. If finance isn’t your forte, hand over the reins and let tech play CFO.

The app Solo by MYOB can help you automate GST, track expenses​ and prep your business for tax time. You can even download reports from Solo to share with us or your bookkeeper. Translation: less stress, more doing the work you love.

Source: MYOB
Reproduced with the permission of MYOB. This article by MYOB Subject Matter Experts was originally published at https://www.myob.com/au/resources/post/taxdeductible-expenses-for-sole-traders-to-watch-for
Important:
This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.
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Driving your tax savings for 30 June

Vehicle-related expenses remain one of the most commonly claimed tax deductions for Aussies, and it’s an area where the Australian Tax Office (ATO) frequently finds errors.

With 30 June not far away, now is a good time to check whether you have all your paperwork in place.

Common car claim mistakes

If you use your private vehicle for work-related purposes (such as visiting clients or travelling to different work locations), you are able to claim deductions for your vehicle-related expenses.i

However, many taxpayers incorrectly try to claim trips from home to work, overestimate their car trips for work usage, or claim 100 per cent business use when the travel is partly private.

Other common errors include automatically claiming expenses for ineligible vehicles (such as one-tonne utes) and failing to keep proper records.

Vehicle logbook or cents per kilometre?

When claiming vehicle deductions, you have the choice of either calculating your claim using a logbook, or the cents per kilometre method.

With the logbook method, you are required to track at least 12 weeks of usage to reflect normal travel patterns to make a valid deduction claim. Odometer readings for the start and end of the claim period are also needed.ii

You also need to keep receipts or other records of all expenses (such as fuel and oil, registration, insurance and repairs). A record of the purchase price of the car and your calculation for its depreciation in value is also required.iii

Cents per kilometre method

Under the current rules for this method, you can claim a maximum of 5,000 work-related kilometres per car, with the 2025-26 deduction rate being 88 cents per kilometre.iv

This rate covers all car expenses, including the depreciation in value, registration, insurance, maintenance, repairs and fuel costs. You are not required to retain receipts.

Some taxpayers make the mistake of adding these expenses on top when calculating their deduction claims, but the ATO will not accept the tax claim.

Electric vehicles (EV) and tax

If your car is electric, instead of keeping receipts for fuel and oil, you must keep receipts for electricity from commercial charging stations, evidence for your electricity charging costs at home and odometer readings for the start and the end of the claim period.

Alternatively, you can use the EV home charging rate of 4.2c per kilometre to make a reasonable estimate of your home charging expenses based on your odometer readings.

If you choose to use this rate but you also used commercial charging stations, your commercial charging costs are ineligible for a separate deduction.

Novated leases and salary packaging

Salary packaging a novated car lease is still a popular choice for many employees, as eligible vehicles are purchased using pre-tax salary, reducing the amount of income on which tax is paid.v

Some leases even allow running costs to be included in your lease payments, potentially making both these costs and the purchase price GST-free (the residual value at the end of the lease is subject to GST and cannot be salary packaged).

One drawback with a novated lease is you cannot claim a deduction for your running costs as your employer is deemed the owner of the vehicle during the lease period. You are able to claim additional expenses (such as parking and tolls) associated with work use of the car.

FBT and novated leases

When you drive a car under a novated lease provided by your employer, the ATO considers it a fringe benefit, so you need to consider the potential tax implications.

As your employer is liable for the Fringe Benefit Tax (FBT), some companies pass this cost on to you by taking it from your pre-tax salary.

Novated leases, however, are eligible for an FBT exemption if the car is an eligible EV and the purchase price is below the luxury car tax threshold for fuel efficient vehicles.

If you would like more information about preparing your vehicle deductions for 30 June, contact our office today.

i, ii Trips you can and can’t claim | Australian Taxation Office

iii Expenses for a car you own or lease | Australian Taxation Office

iv Expenses for a car you own or lease | Australian Taxation Office

v Salary sacrificing for employees | Australian Taxation Office

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Small business super and tax tune-up

This year is shaping up as one of the biggest for tax and superannuation reform.

Several major changes begin on 1 July, so small businesses that aren’t prepared, face compliance headaches, cashflow pressure and ATO scrutiny.

Here’s what you need to know.

Super must be paid every pay day

The most significant change is the introduction of Payday Superannuation. Payday Super will help employers meet their super guarantee (SG) obligations and help protect the retirement funds of millions of Australians.

From 1 July, employers must pay super at the same time as wage and salary payments.i

That means Super Guarantee (SG) contributions must be in an employee’s account within seven business days of each pay day.ii

For new employees, or those paying to a new super fund, you have 20 business days for the first payment to reach the account.

The new rules also include changes to how you calculate and report contributions.

Super will be calculated at 12 per cent of qualified earnings (QE). These include ordinary time earnings; salary sacrifice contributions and certain payments to contractors who are treated as employees.

You must include the year-to-date (YTD) amounts of QE and super liability in each Single Touch Payroll report.

SuperStream messaging upgrades

From 1 July 2026 there are changes to the contributions messaging used in the SuperStream system, which is the electronic standardised format you must use to pay super contributions.

The messaging changes include clearer error messaging and are designed to reduce the likelihood that your employee contributions are rejected by a super fund.

What employers need to do

The ATO is urging small businesses not to leave preparations to the last minute. Payday Super will increase your administrative workload and payroll processes will need to change.

  1. Confirm employee super fund details are current and correct
  2. Check your default super fund’s registration details are up to date
  3. Consider paying super contributions more frequently now to identify any errors or problems with rejected contributions before the rules change
  4. Review your payroll software and internal systems to make sure they’re ready to support Payday Super and the SuperStream changes
  5. If you currently use the Small Business Superannuation Clearing House, be aware that it closes on 1 July 2026 and you’ll need to make new arrangements
  6. Read about the changes to SuperStream and the New Payments Platform

And, an important note for those who currently pay super quarterly; you should model the impact of the more frequent payments now to check how your cashflow will be affected after 1 July. For small businesses that have tight profit margins, you will need to plan carefully and potentially create a business forecast to manage your cash flow.

New lower tax rates

From 1 July 2026, the tax rate for individual income between $18,201 and $45,000 will fall from 16 per cent to 15 per cent, with a further reduction to 14 per cent from 1 July 2027.iii

Make sure your payroll system is ready for the change and that the correct amounts will be withheld from employees’ wage and salary payments from the first pay run.

Also, check that the new rates do not affect other payroll calculations such as salary packaging or super contributions.

Earnings tax on high balance super accounts

Some small businesses also need to be aware the Better Targeted Superannuation Concessions (BTSC) measures start from 1 July 2026.

Following recent amendments, the BTSC for high balance fund members now includes a second threshold on super accounts over $10 million, with a concessional 30 per cent tax rate applying on the proportion of earnings corresponding to total superannuation balances (TSBs) between $3 million and $10 million.

A new 40 per cent tax rate applies on earnings from the portion of the TSB over $10 million. The earnings tax only applies to ‘realised’ gains on assets, such as when interest is earned or a property is sold.

If you need help preparing for the upcoming tax and super changes, contact our office today.

i Payday superannuation | Australian Taxation Office

ii Spotlight on… Payday Super | Australian Taxation Office iii Personal income tax – new tax cuts for every Australian taxpayer | Australian Taxation Office

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Smart business strategies to prepare for the festive season

The festive season is a unique time for small businesses. It can bring a wave of opportunities such as more customers, increased sales, and chances to strengthen relationships. But it also comes with its fair share of challenges like higher operational costs, unpredictable demand, and the quieter period that often follows the silly season.

Taking control now can help you make the most of the season’s potential while smoothing out the difficulties.

Here are a few tips to manage the ups and downs and stay focused while still embracing the opportunities the season brings.

Get in early

One of the biggest advantages you can give yourself is a head start. The festive season often disrupts normal business rhythms so planning your cash flow, stock levels, and anticipating staffing requirements ahead of time will set you up to respond well whether demand surges or dips.

If you expect busy periods, having enough stock and team capacity means you won’t miss out on sales. If things typically slow down, early planning helps you avoid overspending or overcommitting during quieter times.

Managing inventory can be challenging and for many businesses stocking up for Christmas makes sense, but be careful to plan in advance, and avoid over-ordering. Getting stuck with excess inventory after the holidays can be a big drag on your financials.

Being proactive and planning ahead also means you can factor in higher costs like holiday pay, or penalty rates for casual employees, extra shipping fees or even festive promotions, so your budget isn’t caught off guard.

Keep control: protect your margins

With the festive cheer certainly comes a temptation to discount or run flashy promotions. These can be great opportunities to boost sales and attract attention but without careful tracking they can erode your profits.

Challenges like managing inventory shortages or delivery delays are common this time of year too. Keeping a close eye on your costs, stock levels, and pricing strategies will help you avoid unnecessary losses and maintain healthy margins.

Use the season to build relationships

While the holidays bring a chance for quick wins, the real opportunity lies in nurturing lasting connections. The festive season is a perfect time to show appreciation to your existing customers and welcome new ones with care and attention.

Balancing the rush of immediate sales with the slower, steady work of relationship-building will pay off beyond December and January. Focusing on service quality and thoughtful communication can turn seasonal buyers into loyal supporters.

Prepare for the new year holiday slowdown

One of the trickiest challenges of the season is the January lull. Even after a strong December, the quieter start to the year can strain cash flow with expenses still coming in and income slowing down.

Building a financial buffer and chasing outstanding invoices early, or even offering discounts for early payments, can help soften this blow. This way, you’re not scrambling to cover bills or missing opportunities because of tight funds.

A slow period in your business can also be the optimum time to catch up on admin, review your processes to look for efficiencies and set goals for the year to come, so plan to make the most of down time.

Balance your energy as carefully as your books

Make time for yourself too.

The demands of the season can stretch you thin. Managing financial pressures while keeping up with increased workloads, customer expectations, and personal commitments is no small feat.

Remember that your own wellbeing is part of your business’s health. Prioritise rest, delegate where you can, and focus on what will make the biggest impact both in your finances and your daily work.

The festive period is a time of contrasts: excitement and pressure, opportunity and challenge, growth and recovery. By approaching your finances with a clear plan, attention to detail, and an eye on both short-term gains and long-term stability, you can ride those waves successfully.

This season doesn’t have to be a stress test for your business. It can be a chance to finish the year strong and start the next one with confidence.

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Market movements and review video – November 2025

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Australia’s economy remained under pressure in October. Investors sharply pared back future rate-cut bets after inflation data came in higher than expected.

News of the higher-than-expected inflation numbers was followed by the biggest daily fall in the Australian share market in two months.

Wall Street ended the month subdued over suggestions of no further rate cuts expected this year but there was some optimism about US-China relations.

Click the video below to view our update.

Please get in touch if you’d like assistance with your personal financial situation.


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Succession planning that honours the business you built

For many small business owners, the company they’ve built is more than a livelihood, it’s a legacy. Building a successful business takes years of hard work and dedication and when you’re ready to retire or move on to the next chapter of your life, the path isn’t always clear. That’s where succession planning comes in. 

Whether your children have chosen different careers or there’s no obvious successor in sight, succession planning can be one of the most emotionally and financially complex aspects of running a business. 

Recent Australian research shows that most small businesses won’t be passed on to the next generation. In fact, nearly half of SME owners expect that when they retire it will result in the closure of the business or selling to someone outside the family.i 

Only 39 per cent anticipate a family member taking over, and just one-third have a documented succession plan in place. 

Without a clear plan, many business owners find themselves working well past the traditional retirement age. The reasons vary from lack of interest from family, uncertainty about valuation or simply not knowing where to start and the consequences can be significant. 

Who will take over your business? 

Succession planning isn’t just about protecting financial outcomes; it’s also about preserving relationships. When expectations are unclear or decisions are made under pressure, family dynamics can suffer. Open conversations, guided by a shared vision and professional advice, can help avoid misunderstandings and make sure that everyone feels heard. Even if the next generation isn’t stepping in, a thoughtful plan can honour your legacy and reduce stress for those around you. 

A plan also helps the business operate without disruption during change, which is vital for employees, customers, and stakeholders alike. 

Start early for a smoother exit 

The key to a successful business exit is planning early. 

A well-considered succession plan allows you to decide how and when you leave your business, rather than being forced to react to circumstances. 

A federal government succession planning template is a helpful starting point, but it’s just one piece of the puzzle. 

Planning ahead also helps avoid complications with the Australian Taxation Office. Transferring control or assets within a family business can trigger tax consequences, especially if the structure isn’t reviewed in advance. 

A strong succession plan should cover: 

  • whether you’ll retain any ownership or involvement post-transition 
  • how the successor will fund the purchase (if applicable) 
  • contingencies for unplanned events like illness or sudden death 
  • tax implications of asset transfers, CGT, GST, and restructuring 
  • a current business valuation and regular reviews 
  • legal documentation and buy-sell agreements 

If your business involves trusts, shareholder loans, or complex structures, it’s particularly important to seek professional advice. The ATO is actively reviewing transactions involving family wealth transfers, internal restructures, and use of concessions so clarity and compliance are key. Transactions of interest include assets being moved around within a private group; family member interests being restructured; accessing of concessions, exemptions and rollovers; settlement of shareholder/associate loans (Division 7A loans); and transfer of wealth through trusts.ii 

Get good advice 

Succession planning isn’t just about paperwork. Whether you’re preparing your business for sale, transferring ownership to a family member, or simply exploring your options, professional advice can make all the difference. 

We can help you to: 

  • choose the right tax structure 
  • understand the implications of buy-sell agreements 
  • prepare your business for valuation and sale 

If you’d like to start the conversation or review your existing plan, please contact our office. The earlier you begin, the more choices you’ll have and the more confident you’ll feel about your next chapter of your business. 

i Planning for life after business | Business Research and Insights 

ii Areas of focus 2024–25 | Australian Taxation Office 

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Market movements and review video – August 2025

Stay up to date with what’s happened in the Australian economy and markets over the past month.

Interest rates and tariffs continue to influence markets globally.

After the RBA’s surprise move to leave rates on hold at its July meeting, soft inflation data has paved the way for a future rate cut.

The ASX 200 climbed to a fresh record high during the month of July. Wall Street also recorded all-time highs as tariffs begin to be locked in and AI investment takes off.

Click the video below to view our update.

Please get in touch if you’d like assistance with your personal financial situation.

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Market movements and review video – July 2025 

Stay up to date with what’s happened in the Australian economy and markets over the past month. 

Wars in Europe and the Middle East, volatile oil prices and shifting US policies are making headlines – but failing to dampen market optimism. 

The ASX closed the financial year with a near 10% return – its strongest since the COVID-19 crisis and despite US tariff threats. 

Despite tariff risks for the US economy, the S&P 500 index surged to a four-month high on hopes of future rate cuts and smooth trade negotiations. 

Click the video below to view our update. 
 
Please get in touch if you’d like assistance with your personal financial situation. 
 

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Get prepared to make tax-time easier

There are always lots of tax-related tasks to complete every EOFY, but as we move into the upcoming financial year, it is also worth getting to grips with new tax changes the Government’s election promises will usher in on 1 July, which we’ve outlined below.

New 2025-2026 tax changes

During the election campaign, the Labor government announced a number of tax changes.

These include the introduction of a standard $1,000 deduction for work-related expenses for taxpayers with labour income, a 20 per cent reduction in HECS-HELPS debts, and an extension of the $20,000 instant asset write-off until 30 June 2026.

Legislation has already been passed to cut the tax rate for individuals and is effective from 1 July 2026. The rate for income between $18,201 and $45,000 will be reduced from 16 per cent to 15 per cent, with a further reduction to 14 per cent in the following financial year.i

The government has also made it clear it intends to proceed with its draft legislation (Division 296) reducing the tax concessions for super accounts with a balance exceeding $3 million. This legislation will double the tax rate on earnings related to the portion of the balance over $3 million from 15 per cent to 30 per cent.

Now, let’s look at a few ways you can get prepared in the lead up to 30 June.

Start your tax preparations now

The ATO has announced its tax time hitlist, so it’s also important to check your current tax arrangements are not going to leave you vulnerable to an audit or significant penalties. The main focus for the ATO this year is work-related expense claims, investment properties and holiday home claims, and sharing economy income and cryptocurrency.i

With the ATO taking a much tougher stance on both tax reporting and payments, make sure you lodge and pay on time, or you could face penalties and interest charges. From 1 July 2025, interest paid to the ATO will no longer be tax-deductible.

Tips for businesses

Review and update all of your financial records and identify expenses that could be deductible.

You may want to make some deductible purchases prior to EOFY to help reduce your taxable income for the financial year. The small business instant asset write-off limit for 2024-25 is $20,000.ii

Also check your debtors, inventory and fixed assets, and ensure you write-off any debts that are not recoverable. Review any capital gains and losses and consider offsetting the gains with capital losses.

Check all required super contributions for employees have been made, plus any additional contributions for business owners. Ensure these contributions are received by the funds specified cut-off date to qualify for any tax deduction.iii

To-do list for personal tax

Getting your personal tax information prepared is also important, particularly given the ATO’s focus on personal deduction claims.

If you have regular deductible expenses (such as interest on investment loans and annual payments), consider prepaying them before 30 June so you can claim a deduction this financial year.

If you are likely to have personal capital gains tax obligations from the sale of assets, consider whether you should try to offset them against capital losses.

Time for some super contributions

Consider making extra personal super contributions before the financial year ends if you can.

Before making any contributions, check the total amount of both your concessional (before-tax) and non-concessional (after-tax) contributions across all your super accounts to ensure you do not exceed the annual cap limits.iv

Other super contributions to consider include personal tax-deductible contributions, contributions on behalf of your spouse and eligible contributions that could earn you a co-contribution from the government.v

If you would like to discuss EOFY preparations for either your personal tax or business, please call our office today.

i ATO unveils ‘wild’ tax deduction attempts and priorities for 2025 | Australian Taxation Office

ii Instant asset write-off for eligible businesses | Australian Taxation Office

iii Missed and late super guarantee payments | Australian Taxation Office

iv, v Caps, limits and tax on super contributions | Australian Taxation Office

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