June 30 is approaching fast, and for most Australians, that means last-minute tax planning. While proper tax strategy should happen year-round, you can still make legitimate moves in these final weeks to reduce your tax bill.
Whether you’re running a business or working as an employee, here’s what you can do before the financial year closes – end of financial year tax tips.
For Business Owners: June Checklist for end of financial year tax tips
Bring Forward Legitimate Business Expenses
Any business expense you’ve been planning for the next few months can potentially be brought forward to June. This includes:
- Office equipment and technology
- Marketing and advertising campaigns
- Professional development and training
- Software subscriptions and licenses
- Repairs and maintenance
The key word is legitimate. These need to be genuine business expenses you would have incurred anyway. The ATO scrutinises last-minute purchases, so make sure everything has a clear business purpose.
Maximise Your Super Contributions
As a business owner, you can make concessional super contributions up to $30,000 for the 2024-25 financial year and claim them as tax deductions.
If you’re in the top tax bracket, every dollar contributed to super (within the caps) saves you about 32 cents in tax. On a $20,000 contribution, that’s $6,400 in tax savings.
You have until June 30 to make these contributions but don’t leave it to the last day. Super funds need time to process contributions before the deadline.
Use the Instant Asset Write-Off
Small businesses can immediately deduct assets costing up to $20,000 instead of depreciating them over several years.
But there’s a catch: you must install and use the asset in your business before June 30. Simply purchasing it isn’t enough. That new computer needs to be set up and operational, not sitting in its box.
Review Your Stock and Inventory
Conduct a thorough stocktake to identify:
- Obsolete stock that won’t sell
- Damaged inventory
- Slow-moving items you can write down
Work with your accountant to properly account for these items. This isn’t about creative accounting – it’s about accurately reflecting the real value of your inventory.
Check Your Debtors
Review outstanding invoices and consider whether any debts are genuinely unrecoverable. Bad debts can be written off if you’ve made reasonable attempts to collect and there’s no realistic prospect of payment.
For Employees: Your Tax-Saving Options
Boost Your Super Contributions
Even as an employee, you can make additional concessional super contributions up to the $30,000 annual cap (including your employer’s contributions).
If you’re earning $100,000 and your employer contributes the standard 11.5% ($11,500), you could add another $18,500 yourself and claim it as a tax deduction.
For someone in the 32.5% tax bracket, that $18,500 contribution saves approximately $6,000 in tax.
Claim Legitimate Work Expenses
You can claim work-related expenses, but documentation is crucial. Common deductions include:
- Home office expenses (using the fixed rate of $0.67 per hour worked from home)
- Professional development and training
- Work-related travel and accommodation
- Union fees and professional memberships
- Specific work equipment and tools
Keep detailed records and receipts. The ATO closely examines work expense claims, particularly after several years of inflated claims.
Salary Sacrifice Arrangements
If your employer offers salary sacrifice, you might still have time to make arrangements for this financial year. Popular options include:
- Additional super contributions
- Car leasing
- Electronic devices
- Professional development
Check with your HR department immediately about deadlines and available options. Some arrangements need to be in place well before June 30.
Investment Property Maintenance
If you own investment property, consider bringing forward necessary repairs and maintenance. Repairs are immediately deductible, while improvements must be depreciated over time.
The distinction matters: fixing a broken tap is a repair (immediate deduction), while renovating a bathroom is an improvement (depreciated over several years).
Prepay Deductible Expenses
You can prepay certain deductible expenses for up to 12 months in advance, including:
- Investment property management fees
- Insurance premiums
- Interest on investment loans
This strategy works best when you expect to be in a higher tax bracket this year compared to next year.
The Bigger Picture: What You Can’t Fix in Four Weeks
While these last-minute strategies can provide immediate tax relief, they’re band-aid solutions. Real tax efficiency comes from year-round planning and proper structure.
Long-Term Strategies Require Time
The most effective tax strategies can’t be implemented in June:
- Business Structure Optimisation: Moving from sole trader to company, or restructuring existing entities, takes months of planning and implementation.
- Trust Structures: Family trusts and discretionary trusts offer significant tax planning opportunities, but they need to be established well before you need them.
- Investment Timing: Strategic timing of asset sales to optimise capital gains treatment requires long-term planning, not last-minute decisions.
- Succession Planning: Tax-effective business succession planning can take years to implement properly, particularly when utilising small business CGT concessions.
Year-Round Tax Planning Benefits
Clients who engage in ongoing tax planning typically achieve:
- Better cash flow management through quarterly tax planning reviews
- More strategic business decisions that consider tax implications upfront
- Optimise timing of income and expenses throughout the year
- Proper structure to support business growth and wealth creation
- Reduced stress from last-minute scrambling
Start Planning for Next Year Now
The 2025-26 financial year begins on July 1. Instead of repeating this June scramble next year, consider:
- Quarterly reviews of your tax position
- Strategic planning for major business decisions
- Regular assessment of your business and investment structures
- Ongoing professional development and advice
At Navigate Advisory, we combine financial planning , accounting, business advisory, lending and property advisory services under one roof. This means we can look at your entire financial picture – not just your tax situation. When your investments, super, business structure, and tax strategy all work together, you achieve better outcomes than treating each area in isolation.
Arrange an introductory chat at: navigateadvisory.com.au/contact/
Navigate Advisory has offices in Balmain, Brighton-Le-Sands and Hurlstone Park.