Jun 18, 2025 Joel Hernandez
Year End Tax Tips 2025
As we near the end of another financial year, here are some quick tax tips to help you finish 2025 well.
For Individuals
Top up your superannuation with concessional (tax deductible) contribution, make a spouse contribution, or access the co-contribution incentive
The concessional contributions cap for the year ended 30 June 2025 is $30,000. Depending on your circumstances, this allows you to contribute a bit extra into your super on a before-tax basis, potentially reducing your taxable income. If you have any unused concessional contribution amounts from previous financial years and your super balance is less than $500,000, you may be able to “carry forward” these amounts to further top up your super in the 2025 financial year.
If your spouse meets certain criteria, you may also be able to make contributions to their superfund on their behalf and receive a tax offset of up to $540.
If you will earn less than $60,400 in 2025 you may be eligible to benefit from the co-contribution incentive, which provides a government super contribution of up to $500 in return for a personal super contribution of up to $1,000.
Remember that the superfund must receive the contribution before 30th June for it to count for this financial year.
Bring forward expenses
Consider paying for work related items (such as memberships, equipment with a cost up to $300, business car repairs, etc) prior to 30th June to claim a tax deduction in this financial year.
Also consider bringing forward any tax-deductible donations to this financial year (note that only donations to eligible Deductible Gift Recipients (DGRs) are claimable).
Defer Income
Consider deferring income wherever possible, to the next financial year, especially if you are anticipating a lower level of income going forward.
Realise any capital losses
If you have capital gains (e.g. from selling property or shares), consider selling investments with unrealised losses so that the gain and the loss fall in the same tax year. Again, these need to be genuine transactions to be effective for tax purposes.
Investment property owners
If you do not have one already, a depreciation schedule is a report that helps you calculate and claim deductions for the natural wear and tear over time on your investment property. Depending on your property, it might help to maximise your deductions.
For Businesses
Pay June quarter employee super contributions now
You need to physically pay June quarter super contributions this financial year if you want to claim a tax deduction in the current year. The next quarterly superannuation guarantee payment is due on 28 July 2025, however some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months.
Don’t forget yourself. Superannuation can be a great way to get tax relief and still build your personal wealth. Your personal or employer sponsored contributions need to be received by the fund before 30 June to be deductible. Remember that the key date is the date the Fund receives the money not the date it leaves your account.
Bonuses and Directors fees
If it makes sense to do so, bring forward tax deductions by committing to directors’ fees and employee bonuses (by resolution), and paying June quarter super contributions in June.
Instant Asset write-off
The government has recently confirmed that the instant asset write-off will remain in its current form until 30 June 2025 for businesses with a turnover of less than $10 million. That means that eligible small businesses will be able to immediately write off the entire value of certain new or second-hand assets up to $20,000 per asset. To be eligible, the asset needs to be installed or ready to be used by the 30th of June 2025.
Obsolete plant & equipment
If your business has obsolete plant and equipment sitting on your depreciation schedule, instead of depreciating a small amount each year, scrap it and write it off before 30 June.
Pay off ATO debts where possible
From the 1st of July 2025, any General Interest Charges (GIC) and Shortfall Interest Charges (SIC) accrued on ATO debts will no longer be deductible for tax purposes, so consider re-structuring your debt if required to avoid non-deductible interest expenses.
Write-off bad debts
To be a bad debt, you need to have brought the income to account as assessable income and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June. If you don’t maintain a debtors’ ledger, a minute confirming the write-off is a good idea.
Bring forward repairs, consumables, trade gifts or donations
To claim a deduction for the 2025 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.
Trust Distribution Resolutions by June 30
Trust Distribution resolutions are required to be signed prior to June 30 or as otherwise required by your Trust Deed. In most cases we will assist you with these. If you are distributing to new beneficiaries, you need to quote their Tax File Number to the ATO by 31st July 2025.
We are always here to help, so please contact us before acting on any of the above points, as there are complex tax rules to navigate.
If you have any questions or other matters you wish to discuss please don’t hesitate to contact us on 9878 1477, or email us at contact@rdlaccountants.com.au
