EOFY 2025

The end is nigh – end of the tax year 2025 that is

Some Reminders and Actions to Consider:

Last Minute!!

• Consider equipment replacements – the instant asset writeoff is still in play for business assets up to $20k until 30 June 2025 – no guarantees after that.

  • Employees, if your work boots are getting worn, for example, invest in a new pair of steelcaps now.

• Anything begging for repair around the business premises or on your investment property?

  
  

Before 30 June

• Are there expenses you can prepay for the coming year? As long as you're paying no more than 12 months ahead, and your turnover is under $50mil, that can be a deduction this year (instead of next). Think memberships, insurances, recurring services, perhaps even rent.

• Trust distributions – trustees of a discretionary (sometimes called family) trust must document their decision on distribution of profit from the trust on or before 30 June for the relevant year. Contact us if you require assistance with the format of this document.

• Company Director Loans - Have you borrowed from your company by accident? Bit of an advance payment, used the company account and forgot to pay it back? Have a check, have a chat, make a plan. If you had a division 7a or Director loan last year, have you actioned required minimum payments?

• Check your asset list, is it up to date? Or still showing that printer from 2 replacements ago? If there's a balance there, let's write it off! It will also mean your records are properly up to date for valuation and insurance, amongst other purposes.

  • Sometimes things are left off depreciation schedule when written off for tax as a bookkeeping shortcut – this is not our policy, but think about what you have on hand and in use so we can discuss when preparing your return.

• Have you got your diary evidence ready to go for working from home, work-related car use, work travel, etc?

  • Have you got a plan to keep these records as you go through next financial year?

• Do you have a new (to you) rental property? Have you organised a depreciation schedule yet? Reach out if you'd like to know more about how to obtain one, and what difference it can make to your tax bill.

• Feeling generous? Registered Charities supporting a cause you care about would appreciate a donation! Check they are registered tax deductible recipients on the ACNC register, and save the receipt!

On or at 30 June

• Check your debtors - for anyone owing you who is no longer collectible (genuinely ghosting you or gone broke), consider documenting the decision they have become uncollectible and writing them off as Bad Debts.

• Count your stock - materials, goods for resale, livestock - it's good to know what you've got, but also, the value of this is relevant for profitability and tax (cost is fine, or market value if that's lower, let us know which you've used).

• Consider your works in progress - materials and labour costs incurred for projects not quite ready to be invoiced are also relevant for understanding true profitability and accurate taxation.

• Consider bills you haven’t paid – factoring those in can get a more accurate profitability picture, and they may be deductible unless you opt for a 'cash basis'.

• If you issue gift cards, how many are out there waiting to be enjoyed? If they’re still not cashed in, that money hasn't been earned yet, so why pay income tax on it? Conversely, how many expired unused ?

• Similarly, if you take deposits, and they are still within the refundable window, make sure you have a record of those so you only pay tax on what you have delivered, or collected that is now non-refundable.

After year-end

• Finalise Single Touch Payroll for Employees by 14 June (this may include yourself, if you run through a Trust or Company!)

• Pay the balance of June Quarter Superannuation by 28 July

• Prepare and lodge (or have your bookkeeper/tax agent do it) Taxable Payments Annual Report (TPAR) if you are in a building/construction, IT, cleaning, security or courier/.road freight industry and used subcontractors - by 28 August

• Gather your annual or year-end records

  • Rental Agent Annual Statements/Summaries

  • Loan and Bank Statements showing the balance at 30 June and interest for the year

    • also business credit cards

    • also payment platform clearing reports e.g. PayPal, Stripe, Square etc

  • Health Fund Statement

  • Investment Reports - some managed funds take a couple of months to finalise their reporting, other investments like shares and crypto should be available close to 30 June

  • Acknowledgement of your Notice of Intention to Claim a Tax Deduction form from your superannuation fund (even if self-managed), if you personally contributed.

• Lodge your return by 31 October - unless you are engaged with a Registered Tax Agent like Chromatic!

• Reflect and review

  • What went well this year?

  • Are there expenses you can trim, clients you can expand with, or investments, insurances, systems you can review?

  • What did you learn, what are your goals or changes to make FY2026 even better?

Consider early June next year

• Pay employees’ superannuation – its owed to them, and only deductible to you when paid, but not if its late. Allow time for the banks and super funds to process the contributions.

• Consider personal concessional (aka deductible) contributions – if you’re eligible and have the cash to top up your super – best to check with your fund/s as to how much has been processed since 1 July, so you know how much cap is left. Again allow time for processing.

The above is, as always, general advice and should be considered or discussed with a professional with your specific situation in mind.

We offer a pre-year-end tax planning service for advice and clarity for Chromatic clients in May/June each year.