The end of Financial Year 2024-2025 is rapidly approaching.
As a business owner it is time to review your tax affairs, if not yet done, to ensure you are complying with next year’s regulations and to maximise any planning strategies going forward.
The checklist below summarises some key points that may be relevant going into the next financial year.
Some key dates coming up:
- 30 June 2025 – Process June 2025 Super
- 14 July 2025 – STP Finalisations to be lodged with the ATO
If you would like to find out more or would like to discuss your year end tax planning or assistance with lodging your Single Touch Payroll finalisation or Taxable Payment Annual Report, please don’t hesitate to contact us.
| ITEM | ENHANCE YOUR TAX DEDUCTIONS |
| Accrued expenses | Ensure you accrue expenses where you have a present existing liability to pay the expense irrespective of the fact that you may receive the invoice or make the payment after year end. |
| Bad debts | Review your debtors listing and determine whether any debts can be written off. A written record should be kept evidencing the decision to write off the debt from the accounts. |
| Bonuses | If you have not paid your bonuses by 30 June, you may still be able to claim a deduction provided you have an obligation to pay this. To substantiate this, ensure the amount is quantifiable and approved (via minutes) and the staff are notified of the bonus. |
| Deferring income | The ability of a business to defer income will depend on each business, cash flows and the type of income derived. |
| Plant and equipment | Consider the impact of the $20,000 instant asset write-off applies for small businesses with turnover under $10 million, for assets first used or installed ready for use by 30 June 2025. |
| Plant and equipment – obsolete | Review your asset register and write off any assets that have been disposed or are no longer in use. |
| Prepayments – immediate deductions | If you are a small business (aggregated turnover of less than $10 million), you may be entitled to an immediate deduction for certain prepaid expenses where the goods or services will be provided within 12 months from the date of expenditure. Examples of items that may be deductible under the 12-month rule include subscriptions and prepayments of interest on a loan used for income producing purposes. |
| Simplified trading stock rules | If you are a small business (aggregated turnover of less than $50 million), the simplified trading stock rules may apply. Broadly, you do not have to account for changes in trading stock for tax purposes where the difference between the value of the original opening stock and a reasonable estimate of the closing stock is $5,000 or less. |
| Stock – obsolete | Review your stock on hand and identify any obsolete stock. You should conduct a detailed physical stock take of all stock on 30 June. Retain your detailed stock sheets as part of your taxation records. |
| Superannuation – June 2025 | If you would like to claim a deduction for your superannuation guarantee accrued during the June 2025 quarter, ensure it is paid by 30 June 2025. The amount should be received into the employees’ fund by 30 June 2025.
Note that super clearing house delays can affect the timing of when received by your employees’ fund. Payments should be made well before 30 June to ensure they are received by the fund in time. |
| Depreciating assets | If you plan on purchasing depreciating assets, ensure you have purchased and installed the asset ready to use by 30 June 2025 to claim the full amount of the depreciation in the 2024-2025 financial year. |
| ITEM | COMPLY WITH REGULATORY REQUIREMENTS |
| Single Touch Payroll | Ensure year end payroll procedures have been completed, reconciled and a finalisation declaration lodged for your employees by 14 July 2025. |
| Taxable Payment Annual Reports (TPAR) | If you are in these following industries, you will need to prepare a TPAR:
Your TPAR must be lodged with the ATO by 28 August 2025 |
| Payroll Tax | If you are paying taxable wages to staff or contractors over a certain threshold, an annual reconciliation is to be submitted by 21 July 2025 in Western Australia. If you are operating in other states please check the relevant authorities website for confirmation. |
| Loans | Ensure your loans to and from any companies and trusts comply with the current Division 7A provision and ensure you have made the minimum repayments during the year for any complying Division 7A loans. |
| Dividends | Ensure you have reviewed your franking account and record any dividends paid to shareholders in your accounting systems. Ensure you have met your documentation / notification requirements. |
| Trust Resolutions | In general and subject to the terms of the Trust Deed, a discretionary trust needs to resolve how to distribute its income in writing before 30 June. These resolutions are on their way to you from us. |
| Minimum Wage and Super Guarantee Increase | Consider if any award rates (if applicable) have changed and need to be updated in your payroll system, or if any annual licences need renewing.
The national minimum wage will increase to $24.95 per hour or $948.00 per week, based on a full-time, 38-hour working week. Update the Super guarantee % rate to 12% from 1st July 2025. For more information visit the Fair Work website. |
| Stock – obsolete | Review your stock on hand and identify any obsolete stock. You should conduct a detailed physical stock take of all stock on 30 June. Retain your detailed stock sheets as part of your taxation records. |
| Superannuation – June 2025 | If you would like to claim a deduction for your superannuation guarantee accrued during the June 2025 quarter, ensure it is paid by 30 June 2025. The amount should be received into the employees’ fund by 30 June 2025.
Note that super clearing house delays can affect the timing of when received by your employees’ fund. Payments should be made well before 30 June to ensure they are received by the fund in time. |
| Depreciating assets | If you plan on purchasing depreciating assets, ensure you have purchased and installed the asset ready to use by 30 June 2025 to claim the full amount of the depreciation in the 2024-2025 financial year. |
As always, the team at Accura is on hand to chat about your end-of-year tax planning or to share more insights with you. Please feel free to get in touch.
