As Registered Tax Professionals, with years of experience helping small businesses navigate the complexities of the Australian tax system, our team have seen firsthand the positive impact that proactive tax planning can have.
With the end of the financial year fast approaching on June 30th, 2025, now is the ideal time for small business owners to implement tax-saving strategies that can have a significant impact on their bottom line.
Here are ten key strategies to consider:
- Leverage the Instant Asset Write-Off: The Instant Asset Write-Off scheme presents a valuable opportunity for businesses to claim immediate deductions for eligible assets costing less than $20,000. If you’ve been considering investing in new equipment or technology, doing so before June 30th could result in substantial tax savings.
- Prepay Eligible Expenses: By prepaying expenses such as rent, insurance premiums, and professional subscriptions for the upcoming financial year, you can bring forward deductions and potentially reduce your taxable income for the current year.
- Maximise Superannuation Contributions: Superannuation contributions offer a powerful way to reduce taxable income. Ensure you and your eligible employees are making the most of concessional contributions before the end of the financial year.
- Write Off Bad Debts: Take the time to review your accounts receivable and write off any bad debts that are unlikely to be recovered. This will help to accurately reflect your business’s financial position and reduce your taxable income.
- Utilise Small Business Tax Concessions: As a small business owner, you may be eligible for a range of tax concessions, including simplified depreciation rules and immediate deductions for certain start-up expenses. Make sure you’re taking full advantage of these concessions.
- Implement Income Splitting: Depending on your business structure and individual circumstances, income splitting strategies may be an effective way to reduce your overall tax liability. This involves distributing income among family members or entities to leverage lower tax brackets.
- Review Your Business Structure: Your business structure can have a significant impact on your tax obligations. If you’re currently operating as a sole trader, for example, switching to a company structure could potentially lower your tax rate.
- Claim All Eligible Deductions: It’s essential to ensure that you’re claiming all of the deductions you’re entitled to. This includes deductions for business travel expenses, depreciation of assets, and the business portion of expenses for items used for both personal and business purposes.
- Invest in Energy-Efficient Upgrades: If your business has an annual turnover of less than $50 million, you may be eligible for an additional 20% deduction on spending that supports electrification and energy efficiency. This could be a great incentive to invest in upgrades that will benefit both your business and the environment.
- Seek Professional Advice: Navigating the complexities of the tax system can be challenging. Seeking advice from a registered tax agent or accountant can help you to develop a tailored tax plan that meets your specific business needs and ensures you’re meeting all of your compliance obligations.
By taking a proactive approach to tax planning and implementing these strategies, you can minimize your tax liability and free up valuable resources to invest in your business’s growth. Remember, it’s important to keep accurate records and ensure that all of your actions comply with current Australian tax laws and regulations. If you have any questions or need assistance, please don’t hesitate to reach out to our team.
TSP are registered tax agents and a team of qualified accounting professionals so we can take a holistic review of your business and assist you take full advantage of any or all of the above strategies. Contact us on 4926 4155 or admin@tspaccountants.com.au
Director at TSP Accountants & Business Advisors
With 25 years of experience in taxation and business advisory, Deidre has helped countless businesses and individuals navigate complex financial landscapes. She has a strong focus on self-managed superannuation funds (SMSFs) and ensures her clients are fully compliant while maximizing financial opportunities. Deidre is also a registered SMSF and Trust Account Auditor.
When not at work, Deidre enjoys spending time with her husband and two children, as well as indulging in audiobooks and coffee.
Areas of Expertise:
✅ Business structuring & compliance
✅ SMSF strategy & auditing
✅ Tax planning for individuals & businesses
📧 deidrem@tspaccountants.com.au
When not at work, Deidre enjoys spending time with her husband and two children, as well as indulging in audiobooks and coffee.
Areas of Expertise:
✅ Business structuring & compliance
✅ SMSF strategy & auditing
✅ Tax planning for individuals & businesses
📧 deidrem@tspaccountants.com.au
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