Maximising Deductions Before 30 June

• Prepay Expenses: Prepay rent, insurance, or subscriptions to bring forward deductions.
• Stock Management: Review inventory to write off obsolete or slow-moving stock at lower valuations.
• Bad Debt Write-Offs: Ensure irrecoverable debts are written off before 30 June.
• Employee Super Contributions: Pay superannuation contributions well before 30 June to secure deductions.

TIP: Remember that deductions for accrued expenses are not generally available unless actually incurred by year-end.

Asset Purchases & Depreciation

• Instant Asset Write-Off: Check eligibility to immediately deduct purchases under the instant asset write-off rules.
• Depreciation Planning: Strategically time asset purchases to maximise depreciation benefits in the current year.
• Obsolete Assets: Review and scrap obsolete assets where appropriate.

Tax Structuring & Income Management

• Trust Distributions: Ensure trust distribution resolutions are signed before 30 June to avoid default assessments at the highest marginal rate.
• Director/Owner Salaries: Adjust salaries and dividends for tax efficiency while considering superannuation contribution caps.
• Private Company Loans (Division 7A): Ensure loan agreements meet Division 7A minimum requirements or repay loans as needed.

Loss Planning & Carry-Back Rules

• Utilise Tax Losses: Explore carry-forward or (where eligible) carry-back of losses to offset prior income.
• Continuity of Ownership Test: Ensure ownership continuity requirements are met if carrying forward company losses.

Capital Gains Tax (CGT) Strategies

• Timing Asset Sales: Where possible, defer asset sales to the next financial year if you anticipate a lower tax rate.
• Small Business CGT Concessions: Maximise benefits via:
  • 15-year exemption
  • 50% active asset reduction
  • Retirement exemption
  • CGT rollover relief
• Capital Loss Harvesting: Realise capital losses before 30 June to offset gains.

Superannuation Strategies

• Maximise Concessional Contributions: Up to $30,000 annually (higher if unused caps from prior years are available under catch-up rules).
• Non-Concessional Contributions: Consider making up to $120,000 annually (or $360,000 using the 3-year bring-forward rule).
• Downsizer Contributions: If eligible (aged 55+), contribute up to $300,000 from selling your main residence without impacting contribution caps.
• Division 293 Tax: If your income exceeds $250,000, structure contributions to minimise the 15% surcharge on super contributions

Capital Gains Management

• Review Investment Portfolios: Offset gains by selling underperforming investments.
• Defer Sales Where Appropriate: Delay selling appreciating assets if it results in a lower overall tax burden.

Trust Income Distributions

• Document Resolutions Properly: Ensure family trust distributions are signed and effective before 30 June to avoid unnecessary taxes.

Division 7A Compliance

• Private Company Loans: Regularly review any loans to shareholders and comply with Division 7A loan agreements to avoid deemed dividends.

Charitable Giving

• Maximise Donations: Gifts to Deductible Gift Recipients made before 30 June are tax deductible.
• Structured Philanthropy: Consider establishing a Private Ancillary Fund (PAF) for long-term charitable impact.

General Tax Planning Considerations

• Defer Income Where Appropriate: Especially if you anticipate a lower income or tax rate in 2025-26.
• Accelerate Deductions: Purchase business essentials or bring forward expenses if you are likely to be on a lower marginal rate next year.
• Working from home Deductions: Use the ATO’s fixed rate (67 cents/hour) for simplified expense claims.
• R&D Tax Inventive: If engage in eligible R&D activities, confirm compliance with thresholds and record-keeping obligations.
• Family Trust Elections and Losses: Consider elections where necessary to preserve tax loss benefits.
• Review Non-Commercial Loss Rules: Especially if operating hobby businesses.

Compliance Reminders

• Trustee Resolutions: Must be made by 30 June – no grace period applies.
• Tax Agent Fees: Only deductible once incurred.
• Thin Capitalisation Rules: Review debt levels for compliance where applicable.
• Land Tax Considerations: If selling business property, the timing of settlement could impact land tax assessments.
• Consolidation Planning: If consolidating a group mid-year, ensure proper reporting for each entity pre-consolidation.