Blog | Tax Planning in 2025: Maximising Your Business Savings Before EOFY

The end of the financial year (EOFY) is fast approaching. This is an ideal time for businesses to ensure their tax planning strategies are in place. Effective tax planning is more than just about reducing tax liability for this year. It also helps set up long-term financial efficiency. Working proactively with an experienced accounting firm can make a substantial difference in your financial planning.

Why Tax Planning Must Happen Before EOFY

Tax planning is not something that can be done after 30 June. By then, many tax-saving opportunities will no longer be available. Businesses that plan ahead can take advantage of deductions, concessions, and deferral strategies to legally reduce their tax liabilities.

Your accounting firm should already be evaluating your financials to optimise your tax position. The focus should be:

  1. Reducing tax this year by maximising deductions, prepaying expenses, and utilising available concessions.
  2. Planning for future tax years by structuring finances for ongoing tax efficiency and compliance.

Important Areas of Tax Compliance & Lodgment Dates

Beyond minimising tax, businesses must also maintain compliance with tax obligations. Missing lodgment deadlines can lead to penalties and financial strain. Key compliance areas include:

Company Tax & PAYG

  • Ensure your company tax return is lodged on time to avoid penalties.
  • Pay As You Go (PAYG) instalments help businesses manage their tax liability throughout the year.

Goods and Services Tax (GST)

  • GST returns and Business Activity Statements (BAS) must be submitted quarterly or annually, depending on your reporting cycle.
  • Claim all eligible GST credits to reduce tax payable.

Payroll Tax & Fringe Benefits Tax (FBT)

  • Businesses with a payroll over the state threshold must register and lodge payroll tax.
  • If your business provides fringe benefits such as company cars or salary packaging, an FBT return is required.

Land Tax (Victoria) & Stamp Duty

  • Businesses that own property must meet land tax obligations.
  • Transactions involving property or business acquisitions may be subject to stamp duty.

Luxury Car Tax (LCT)

  • Businesses selling or importing luxury vehicles above the threshold must account for Luxury Car Tax (LCT).

For specific tax lodgment deadlines for 2024-25, refer to this comprehensive guide.

Smart Tax Strategies for 2025

To make the most of tax planning this 2025, consider these strategies:

1. Maximise Deductions

  • Prepay expenses such as rent, insurance, or professional fees to bring forward deductions.
  • Write off bad debts before EOFY.
  • Conduct a stocktake and write down obsolete inventory.

2. Take Advantage of Instant Asset Write-Offs

  • The instant asset write-off allows eligible businesses to immediately deduct the cost of assets up to the set threshold.
  • Consider purchasing necessary equipment or vehicles before June 30.

3. Review Your Business Structure

  • The right structure (sole trader, partnership, company, or trust) can impact tax efficiency.
  • Trust distributions should be carefully planned before EOFY.

4. Superannuation Contributions

  • Ensure employee superannuation is paid before EOFY to claim deductions.
  • Consider voluntary contributions within contribution limits for tax benefits.

5. R&D Tax Incentives

  • Businesses engaging in research and development may be eligible for R&D tax offsets.
  • Ensure documentation is in place for eligibility.

Expert Tax Advisory for Businesses

At Dillon Clyne, we provide proactive tax planning solutions that are customised for the individual needs of businesses. Our expertise extends beyond compliance. We focus on financial structuring, growth planning, and reducing tax liabilities.

For professional tax planning guidance, contact us today.