Now is the time to start planning and reviewing your records to maximise your tax deductions for the 2024/2025 financial year.

1. Pay Quarterly Super early

Super Guarantee (SG) contributions must be paid before 30 June to qualify for a tax deduction in the 2024/2025 financial year. Consider bringing forward your June quarter SG payments to increase the benefit.

2. Write-off bad debts

Review your debtor list to identify those who owe you money but are unlikely to pay. Write-off bad debts before 30 June - the debt must not be merely doubtful and must have been previously included as assessable income.

3. Prepaid Expenses

Small business entities may bring forward deductible expenses such as rent, repairs and office supplies, that cover a period of no more than 12 months.

4. Stock Take

Trading stock should be reviewed before 30 June to identify any obsolete, slow moving or damaged stock. Obsolete stock must be physically disposed of for income purposes to receive a deduction.

5. Take advantage of the instant asset write off

On 14 May 2024, as part of the 2024–25 Budget, the government announced it will continue to provide support for small businesses by extending the $20,000 instant asset write-off limit for a further 12 months until 30 June 2025.

Please note that this measure has not been passed through Parliament, and is not yet law.

6. Review and postpone some of your invoicing for the current tax year, if appropriate.

7. Contribute to your Super

Top up your voluntary superannuation contributions. You can contribute up to $30,000 in deductible super contributions each year.

If you have a super balance of less than $500,000 at the 30th June then consider using the carry forward rules to claim a deduction for any unused super contribution caps from previous years.

8. Capital Gains Tax Planning

Strategically time the sale of assets to manage CGT liabilities by holding assets for more than a year to qualify for a 50 percent CGT discount.

9. Negatively Geared Rental Properties

You may be eligible to claim a deduction for expenses such as interest, insurance, and rates that you prepay for up to 12 months in advance.

10. Undertake strategic tax planning with your accountant

Great accountants look at two types of tax planning: short-term and long-term tax planning. Short-term planning looks at what you can do before 30 June to minimise your tax this financial year. Long-term tax planning looks at how you can utilise your business structure and the type of investments you can make to minimise tax over the long term. Consider whether restructuring your business into a trust or company could improve tax efficiency.