As the 30th June deadline approaches, Perth businesses are entering the critical period for financial planning and tax preparation. At Perth Mobile Tax & Business Services, we understand that effective EOFY strategies can significantly impact your bottom line. Here’s our expert guide to help your business maximise tax savings while staying compliant in 2025.
What is EOFY and Why Does It Matter?
The End of Financial Year (EOFY) is when businesses finalise their financial reports, lodge tax returns, and review their annual performance. Meeting compliance requirements is important. However, it’s also an opportunity to assess your business position and make strategic decisions for the year ahead.
Essential EOFY Preparation Steps
Review and Reconcile Your Accounts
Before the financial year closes:
- Ensure all financial statements match your bank records
- Reconcile accounts payable and receivable
- Verify all transactions are correctly categorised
- Check that GST has been properly recorded and reported
Conduct a Thorough Inventory Check
If your business carries inventory, now is the time to:
- Complete a physical count of all stock
- Write off obsolete or damaged inventory
- Document your valuation method for tax purposes
Key Tax Deductions for 2025
Understanding available deductions is crucial for minimising your tax liability. Here are some significant deductions to consider.
Business Expenses
The ATO allows deductions for expenses that are “ordinary and necessary” for running your business. While the tax law doesn’t specifically define these terms, they generally include costs that are common and helpful for your business operations.
The expense must be directly related to earning your business income, and you must have records to prove it.
Temporary Full Expensing
Take advantage of the temporary $20,000 expensing measures before they change. This allows eligible businesses to immediately deduct the cost of new depreciable assets, potentially creating significant tax savings.
Superannuation Contributions
Make superannuation contributions for yourself and your employees before 30 June to claim them as deductions in the current financial year. Remember that contributions must be received and processed by your super fund before the deadline.
Strategic Tax Planning for 2025
Defer Income or Bring Forward Expenses
Depending on your financial situation, you might benefit from:
- Delaying invoicing until after 30 June if you expect to be in a lower tax bracket next year
- Prepaying expenses like rent, insurance, or subscriptions to claim deductions in the current year
Research and Development Tax Incentives
The expanded Research and Development (R&D) Tax Credit is available for businesses that innovate in product development and technology. If your business conducts eligible R&D activities, this credit can provide substantial tax benefits.
Small Business Start-Up Costs
If you’ve launched a new business this year, you may be able to deduct certain start-up expenses. These include costs incurred before your business officially began operating, provided they would be deductible if you were already in business.
Navigating Tax Changes in 2025
This year has introduced several tax changes that may affect your business:
- Corporate tax rate adjustments with potential increases in some areas
- Phase-out of temporary pandemic-related relief measures
- Updates to various tax credits and deductions
Staying informed about these changes ensures your business is positioned to comply and optimise tax savings.
Plan for the Future
EOFY is also the perfect time to review your business structure and long-term tax strategy:
- Assess whether your current business structure (sole trader, partnership, company, or trust) is still optimal for your tax situation
- Review your record-keeping systems and consider improvements for the next financial year
- Schedule a consultation with our team to develop a comprehensive tax strategy for 2025-2026
Get Professional Assistance
Tax laws are complex and constantly changing. Working with a professional accountant ensures you’re taking advantage of all available deductions while remaining compliant with ATO requirements.
Our mobile tax service brings expert advice directly to your business, saving you time and hassle during this busy period.
Don’t wait until the last minute to prepare for EOFY. Contact our team at Perth Mobile Tax & Business Services to schedule your tax planning session. We’ll help you implement these strategies and identify additional opportunities specific to your business situation.
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