As 30 June 2025 draws near, it’s the perfect time to get your year-end tax planning in order. Taking proactive steps now can help you maximise deductions, meet compliance obligations and reduce your tax bill. 

This article covers essential EOFY 2025 tax tips for small businesses to help you finish the financial year with confidence and clarity.  

Instant Asset Write-Off

The Government announced that for the 2025 income year, small businesses (aggregated turnover less than $10 million) will be able to write off assets if their cost is less than $20,000 (“instant asset write-off”). It is important to note that only small businesses that opt-in to apply the simplified depreciation rules that will have access to the instant asset write-off rules.  This threshold will also apply to determine whether the full pool balance can be written off. These measures are currently proposed and not yet law. 

Larger businesses can only write off assets with a cost less than $100 including GST. All other assets will generally need to be depreciated over their effective lives, set by the Commissioner. 

Please note that car deductions are capped at $69,674 for 2025. 

Employee Superannuation Contributions

Businesses must pay superannuation guarantee for employees by the 28th day after the end of each quarter. Superannuation for the June 2025 quarter must be paid by 28 July 2025 to meet June quarter obligations. Note, contributions are only deductible in the 2025 financial year if received by the fund before 30 June 2025.  

If you are making super contributions via a clearing house, allow at least 10 days for the payments to reach the super fund by 30 June 2025 or 28 July 2025, depending on which period you wish to claim a deduction. 

The current superannuation guarantee rate for 2025 is 11.5% and will increase to 12% from 1 July 2025. 

Bad Debts

A review of trade debtors (i.e. accounts receivable) should be conducted to identify any amounts considered to be bad debts and whether these should be written off prior to 30 June 2025. To be deductible in the 2025 financial year, a bad debt must be written off before 30 June 2025. There must be a decision to write off the debt and that decision should be documented in writing prior to 30 June. 

Bonuses

Unpaid bonuses may still be deductible if a legal liability to pay the bonus exists at year-end. The obligation must be clearly documented before 30 June 2025. 

ATO Interest Charges No Longer Deductible 

As announced in the 2023-24 Mid-Year Economic and Fiscal Outlook (MYEFO), and now law, deductions for ATO general interest charges (GIC) and shortfall interest charges (SIC) incurred from 1 July 2025 will be denied.   

Company Loan Repayments

Companies that made loans to shareholders or their associates in the 2024 or earlier financial years under a Division 7A loan agreement need to be aware that minimum loan repayments should be made by 30 June 2025 to avoid the remaining balance being treated as unfranked dividend for tax purposes. 

Repayments made by way of dividends must be declared and paid (this can include the crediting of a loan account rather than in cash) by 30 June 2025. 

The interest rate for the Division 7A loans has increased to 8.77% for the 2025 financial year. 

Trust Distribution Resolutions

The Australian Taxation Office (ATO) is maintaining a strong focus on trust distributions, particularly those made to adult children, companies, and non-residents. To avoid trust income being taxed at the highest marginal tax rate, trustees must ensure that valid distribution resolutions are made by 30 June 2025, in accordance with the trust deed. This includes documenting decisions through a formal minute or trustee resolution. 

It is crucial to avoid reimbursement agreements under section 100A of the ITAA 1936, where income is distributed to one beneficiary (e.g., an adult child) but the benefit is received by another (e.g., a parent). If such arrangements are identified, the ATO may tax the income in the hands of the trustee at the top marginal rate. 

In accordance with recent case law it is also important for trustees to give real and genuine consideration to all beneficiaries listed in the trust deed. Failure to do so can be seen as a breach of fiduciary duty. 

To stay compliant and optimise tax outcomes for 2025, trustees should review their trust distribution strategy, ensure accurate and complete documentation, and seek professional advice where needed. 

Single Touch Payroll (STP) Finalisation

Employers must ensure the Single Touch Payroll (STP) year-end finalisation report is lodged by 14 July 2025. If fringe benefits over $2,000 were provided during the FBT year, the grossed-up taxable value must be included in the STP finalisation. 

Need Help with Your EOFY Tax Planning?

Now is the time to take action and ensure you’re making the most of your year-end opportunities. 

Contact our office today to schedule your personalised tax planning review.  

 

Disclaimer 

This article contains general information only and does not constitute personal or taxation advice. You should not act on the information provided without seeking professional advice specific to your circumstances.