The upcoming financial year brings a host of beneficial opportunities and important considerations for small businesses and individuals alike. This comprehensive guide outlines essential steps to navigate the end-of-financial-year landscape, ensuring both businesses and individuals make the most of available deductions and avoid potential pitfalls.
Small Businesses
Instant Asset Write Off
The instant asset write-off is $20,000 for assets first used or installed ready for use between 1 July 2024 to 30 June 2025. This applies only to small business entities with aggregate turnover of less than $10 million
Other initiatives
- Consider prepaying rent, subscription and interest on loans before 30 June 2025. Prepayments are fully deductible for small businesses in the year it is incurred provided the service period is up to 12 months and it ends in the next financial year.
- If you are planning on purchasing a car, the car limit is $69,674 inclusive of GST. This applies to vehicles new or used.
- Review your invoicing with possibility of postponing some of them until after the financial year.
- Review your debtors and write off any unrecoverable debts.
- Review your stock valuation and write off any stock that is damaged or obsolete.
- If bonuses are not paid by 30 June, in order for it to be deductible it needs to be substantiated and approved and staff notified of the bonuses.
Superannuation
- Concessional contributions need to be paid and must be in the superannuation fund bank account prior to 30 June 2025 in order to get the deduction
- To claim a deduction for personal super contributions, you must give your super fund a notice in the approved form and get an acknowledgement from the fund subject to eligibility criteria
- Please be aware that superannuation guarantee amount is increased to 12.00% from 1July 2025. Please also be aware that from 1 July 2022 the minimum monthly wage threshold of $450 was also removed. This means all eligible workers aged 18 years or older will be entitled to receive super contribution regardless of how much they earn.
Trust Resolutions
- Trustees of discretionary and family trusts must make valid distribution resolutions and minutes before 30 June 2025 to effectively distribute trust income to eligible beneficiaries for the year.
- The resolution must be made in accordance with the Trust Deed. If the Trust has not made a valid distribution by 30 June 2025, the Trustee may be liable to pay tax on the Trust’s taxable income at the highest marginal tax.
Family Tax Elections & Interposed Entity Elections
Consideration needs to be given when preparing the 2025 income tax return if a family trust election or an interposed entity election is necessary
General Interest Charge
The ability to deduct GIC will be removed from the 1 July 2025. Therefore any late lodgements should be lodged by the 30 June 2025 to obtain the deduction.
Land Tax
If you conduct some business from home, you might need to pay land tax for the proportion of the property used for work.
Environmental, Social & Governance (ESG)
ESG factors are increasingly important to investors and stakeholders, leading to increased scrutiny and reporting requirements. This is important for investor interest, stakeholder expectations, risk management and long term value creation.
Review Insurance Policies
Take the time to review all your current insurance policies, including workers compensation and business insurance. Ensure that you have enough coverage to protect your business assets.
Single Touch Payroll
- Ensure that you have completed all necessary PAYG Tax Declarations and have provided them to your employees
- Ensure that payroll information is correct prior to making your finalisation declaration.
Individuals
Please note that Individual tax rates and thresholds were change for the current 30 June 2025 financial year. The following table summarises the tax rates for this financial year.
| Tax Rate | Taxable income up to 30 June 2024 | Taxable income from 1 July 2025 |
|---|---|---|
| 0% | $0 – $18,200 | $0 – $18,200 |
| 19% | $18,201 – $45,000 | N/A |
| 16% | N/A | $18,201 – $45,000 |
| 30% | N/A | $45,001 – $135,000 |
| 32.5% | $45,001 – $120,000 | N/A |
| 37% | $120,001 – $180,000 | $135,001 – $190,000 |
| 45% | $180,001 and over | $190,001 and over |
If claiming motor vehicle, two methods can be used:
Cents per km
- up to 5000 km (cents per km rate is 88c, up from 85c in 2024)
Logbook
- This method requires keeping a logbook for 12 continuous weeks
Home Office Expenses – 2 methods available:
Fixed Rate
- 70c per hour (This method covers all home office expenses)
- Can also claim depreciation of assets like office furniture
Actual Cost
- Includes running expenses such as electricity & gas, phone & internet
If you have an investment property, consider:
- Bring forward any repairs prior to the end of the financial year
- Look at possibility of having a depreciation report prepared
- Prepayment of interest on investment loans
- If an investment has been sold during the financial year, resulted in a capital gain consider the sale of any investments that would result in a capital loss to offset the gain
- Point to note – Sale occurs when the contract is signed and not at settlement
- In order to take advantage of potential 50% Capital Gains discount, the investments must have been held for at least 12 months
Catch up contributions
The Superannuation concessional contributions cap for the 30 June 2025 financial year is $30,000. From 1 July 2025 the contributions cap remains at $30,000. A concessional contribution Includes employer, salary sacrifice and personal member contributions.
- The total superannuation balance as at the 30 June 2024 must be below $500,000
- Carry-forward contributions rules that allow super fund members to use any of their unused concessional contributions cap on a rolling basis for five years.
- This means if you don’t use the full amount of your concessional contribution cap ($25,000 for 2020 and 2021, and $27,500 for 2022 to 2024), you may qualify to carry-forward the unused amount up to five years later.
- Carry-forward contributions are calculated on a rolling basis over five years, but any amount not used after five years expires. These carry-forward rules only relate to concessional contributions into super.
- Any catch up contributions available for the 2020 financial year need to be used prior to 30 June 2025 otherwise they will be lost.
- Consider making additional personal member contributions prior to 30 June.
For further assistance, please contact your DFK Benjamin King Money representative.
The information provided does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances.