Top Tax Planning Strategies You Need for 2025 Success
With the end of the 2024–2025 financial year fast approaching, it’s crucial for both business owners and individuals to be aware of and act on effective tax planning strategies. Tax planning goes beyond preparing and lodging your tax return—it’s about structuring your finances to grow your wealth while legally minimising tax. With 30 June 2025 just around the corner, now is the time to act.
We’ve updated the key strategies below to reflect the latest ATO guidance and 2025 thresholds to help you minimise tax.
Defer income
Where possible, consider deferring income to the next financial year. For example, if you issue invoices for services rendered at the end of June, you might choose to delay sending those invoices until early July 2025. This will shift the income into the 2025–2026 financial year. Deferring income can be a useful strategy if you’re expecting to earn less next year or to benefit from the stage 3 personal income tax cuts that come into effect from 1 July 2025. However, it’s important to consider the cash flow implications of this strategy, as well as how it might interact with the Personal Services Income (PSI) or non-commercial loss rules.
Bring forward deductible expenditure
If you have upcoming expenses that will be deductible, consider bringing them forward into this financial year. Common deductible items include office supplies, printing and marketing materials, repairs and maintenance (not capital improvements), software, and consumables. By incurring these expenses before 30 June 2025, you can bring forward the deduction and reduce your taxable income in this financial year.
Prepay deductible expenditure
You may be able to claim a deduction for prepaid expenses like rent, insurance, loan interest, or subscriptions. You can fully deduct the prepayment if it’s under $1,000 (excluding GST) or required by law. If it’s $1,000 or more, the expense must relate to a service period of 12 months or less and end before 30 June 2026. This rule applies to both business and non-business expenses, including work-related or rental property costs.
Review stock and write down obsolete items
Conduct a thorough stocktake before year-end to identify any obsolete, damaged, or slow-moving stock. You can write these items down to their net realisable value, which will reduce the value of your closing stock and, in turn, reduce your taxable income. You should keep proper documentation to substantiate your decision, including your reasons for writing down the stock.
Write-off bad debts
Review your accounts receivable before 30 June and identify any debts you’re unlikely to recover. If you’ve already included the income and tried to collect it, write off the amount and claim a deduction. Record the write-off in your accounting software and keep evidence to support your decision.
Claim the instant-asset write-off
If you run a small business with an aggregated turnover of less than $10 million, you can immediately deduct the full cost of eligible depreciating assets that cost less than $20,000. To qualify, you must first use the asset or have it installed ready for use between 1 July 2024 and 30 June 2025. The $20,000 threshold applies per asset, so you can write off multiple assets if each one costs under the cap. This strategy helps reduce your taxable income while allowing you to reinvest in growing your business.
Director fees and employee bonuses
You must make a genuine commitment to pay director fees or employee bonuses by 30 June 2025 to claim a deduction. This means appropriate documentation—such as board resolutions or formal notifications to staff—should be in place before the year ends. You claim the deduction in the current year, but you only need to withhold PAYG when you physically pay the amount. This strategy helps you bring forward deductions without immediate cash outflow.
Donations
Charitable donations made to registered Deductible Gift Recipients (DGRs) are tax-deductible, provided they are made before 30 June 2025. Keep receipts for all donations and ensure they are made in the name of the highest income earner in your household to maximise the benefit. Donations must not create or increase a tax loss. They also need to be genuine gifts—meaning you receive no material benefit in return.
Superannuation contributions (concessional and non-concessional)
From 1 July 2024, the concessional (pre-tax) contribution cap has increased to $30,000. This includes employer super guarantee contributions and salary-sacrificed amounts. You may also make personal deductible contributions up to the cap. If your total super balance was under $500,000 at 30 June 2024, you can take advantage of unused concessional cap amounts from the past five years under the carry-forward rules.
For non-concessional (after-tax) contributions, the annual cap has increased to $120,000. These contributions are not taxed upon entry into your fund and can significantly grow your retirement savings over time.
In addition, individuals with total income of less than $45,400 may be eligible for the maximum government co-contribution of $500 when they make personal (after-tax) super contributions. This co-contribution phases out for those earning up to $60,400. To be eligible, you must also satisfy the 10% rule—that is, at least 10% of your total income must come from employment or carrying on a business. You also need to be under age 71 at the end of the financial year and lodge a tax return.
If you meet the criteria, this is a great opportunity to increase your super with help from the government. Ensure your contribution is made before 30 June and that your tax return is lodged, as eligibility is assessed through the return.
To claim a deduction this financial year, pay super guarantee contributions for the June quarter before 30 June. Ensure the fund receives the payment or the ATO’s Small Business Superannuation Clearing House accepts it by the deadline.
Crystallise capital losses and defer capital gains
If you have capital gains this year, consider selling underperforming investments to realise capital losses that can offset those gains. Alternatively, if you expect to be in a lower tax bracket in the 2025–2026 year (due to the stage 3 tax cuts), it may be beneficial to defer selling assets that would generate capital gains until after 30 June. Keep in mind the ATO’s anti-avoidance rules regarding “wash sales” where assets are sold and repurchased in a short timeframe solely for tax purposes.
Property depreciation report
If you own an investment property and haven’t already obtained a tax depreciation report, consider doing so before year-end. These reports, prepared by quantity surveyors, allow you to claim depreciation and capital works deductions on both new and existing properties. The potential deductions can be significant, particularly for newer buildings or those with extensive renovations.
Maintain vehicle logbook
If you use a car for work or business purposes and want to use the logbook method to claim expenses, you must keep a valid logbook for a continuous 12-week period. The logbook can overlap two financial years but must include dates within the 2024–25 year. Also ensure you record odometer readings at both the start and end of the year. A valid logbook is typically valid for five years unless your usage pattern changes significantly
Review trust distributions and streaming
If you operate a discretionary trust, it is essential that distribution resolutions are prepared and signed by 30 June 2025. Failure to do so may result in trust income being taxed at the top marginal rate. Proper planning also allows you to stream specific income types—such as capital gains and franked dividends—to particular beneficiaries if your trust deed permits. This can be an effective way to minimise overall tax.
Review private company loans (Division 7A)
If you’ve drawn funds from your private company during the year, ensure that it’s either repaid or a compliant Division 7A loan agreement is in place by 30 June. If not properly managed, the ATO may treat these amounts as unfranked dividends, taxable at the shareholder’s marginal rate. You must also make minimum repayments under Division 7A rules to keep the loan compliant.
Property and crypto records
The ATO continues to focus on capital gains from property and digital assets, including cryptocurrency. Ensure you maintain comprehensive records of all purchase and sale dates, costs, fees, exchange records, and digital wallet addresses. Accurate reporting of capital gains or losses is essential to avoid penalties and ensure your tax return is correct.
As the end of the financial year approaches, now is the time to take action. Proactive tax planning isn’t just about lowering your tax bill. It’s about managing your finances intentionally. It helps you stay compliant with changing ATO rules. It also sets your business or personal finances up for success next year. With significant changes to tax thresholds, contribution caps, and government compliance focus areas, 2025 presents new opportunities and challenges.
Acting early can help you maximise deductions, make timely contributions, finalise trust distribution resolutions, and strategically time income and expenses. Waiting until June 30—or worse, after—limits your options and can expose you to unnecessary tax, penalties, or lost opportunities.
At MaxGrowth, we’re more than tax accountants—we’re your partners in planning, decision-making, and long-term financial growth. Whether you need support with small business planning, superannuation strategies, or investment structuring, our expert team is here to guide you with clarity and confidence.
Let’s work together to ensure your 2025 end-of-financial-year plan is robust, tailored, and ready.
For more information, please contact our team of tax accountants on +61 2 9267 4468 or contact@maxgrowth.com.au. We can assist you in legally minimising tax payable. We reduce your tax time stress. Most importantly, we ensure you meet your legal obligations.
Disclaimer: The following article provides general information and should not be considered as professional financial or legal advice. For specific advice regarding your business, consult with a qualified professional
