For us accountants, it feels like just yesterday the financial year began. Yet here we are, with another EOFY coming to a close.
Is your business ready? Have you compiled everything your accountant will require for a seamless end-of-year process?
If you haven’t, not to worry. We have put together this straightforward guide to provide you with all you need to know about everything tax-related for Australian businesses. Ranging from compliance tasks to handy tips for making the whole lodgement process easier.
Remember, the ATO generally requires businesses to keep records for five years from when you lodge your tax return. Establishing a record-keeping system is therefore quite important to ensure you have a strong end to the financial year.
The Foundations: Why Good Record-Keeping is Non-Negotiable
Laying a solid foundation for your tax preparations starts with clear and accurate financial records, which makes the EOFY process a breeze for you and your accountant.
If your bookkeeping isn’t up to date, daily reconciliations in Xero, accurate coding, and clean reporting, you’re already behind when it comes to EOFY planning.
At Growth IQ, we believe proactive record-keeping is the backbone of effective tax planning and financial strategy. It means no scrambling in June and no missed opportunities throughout the year. If you’re not operating this way, you’re leaving value on the table.
For our clients, this is already handled; we manage the day-to-day numbers so they can stay focused on the bigger picture. That foundation is what allows us to deliver proactive advice, spot tax-saving opportunities early, and help them make confident business decisions year-round.
But if you’re not there yet, here’s what solid bookkeeping enables:
- Accurate tax reporting – so you can correctly declare your income and expenses.
- Legitimate deduction claims – backed by documentation to reduce your taxable income.
- GST compliance – making sure your BAS lodgments and credits stack up.
- Better business decisions – with clean financials giving you clarity.
- Audit readiness – no panic if the ATO comes knocking.
EOFY shouldn’t be a mad scramble. If it is, chances are your record-keeping needs a rethink.
Strategic Tax Planning: Maximising Deductions & Minimising Liabilities
We may sound like a broken record, but think of good record-keeping as the starting point.
But to save money on your company tax bill, you need to know what your business can claim as a cost.
Then, you need to have a plan (enter strategic tax planning) to optimise your tax position. This is when you can start to see some real savings.
Here are some common things you can claim:
| EXPENSE CATEGORY | ELIGIBLE DEDUCTIONS |
| Operational & Administrative Costs | Rent, utilities, office supplies, and employee salaries
Insurance premiums (public liability, professional indemnity, income protection, etc.) Legal and accounting fees |
| Promotional & Sales Expenses | Marketing and advertising costs, including website development and promotional activities |
| Travel & Professional Development | Business-related travel, meals, and entertainment (meeting ATO criteria with thorough records)
Training and development expenses directly related to your business Professional membership fees and subscriptions |
| Asset-Related Expenses | Depreciation of tangible assets (equipment, vehicles, etc.)
Repairs and maintenance of business assets Motor vehicle expenses (logbook or cents per kilometre method) |
| Financial & Other Costs | Superannuation contributions (for yourself and employees)
Bad debts (genuinely unrecoverable, with documented recovery efforts) Home office expenses (if operating from home, covering running and occupancy costs based on business use) |
Unlocking Tax Savings with Tax Credits, Offsets & Incentives
Tax credits can be a great way for small businesses to reduce the amount of tax payable. Unlike deductions, which lower your taxable income, tax credits directly decrease the tax you have to pay.
But not all tax credits are the same. Here are two that are particularly relevant for small businesses:
Small Business Tax Offset
The Small Business Tax Offset is designed to reduce the tax payable on your business income if you are a partner in a small business partnership or a sole small business owner.
How the Small Business Tax Offset works:
- The offset can reduce your tax by up to $1,000 per year.
- It’s calculated as 16% of the tax on your business income from sole trading or partnership activities.
To qualify, your business must have an aggregated turnover of less than $5 million.
Take Advantage of the Instant Asset Write-Off
The instant asset write-off offers a significant benefit, allowing eligible small businesses to immediately deduct the cost of certain assets rather than depreciating them over time.
Growth iQ emphasises the importance of using instant asset write-offs for potential savings. It’s important to understand the current eligibility criteria, including turnover thresholds and the maximum asset value.
Talk to the tax accountants at Growth iQ for more clarity around the instant asset write-off scheme and how you can take advantage of it for your business.
Your Business Structure: A Big Deal in Your Tax Strategy
The legal structure of your business can significantly impact your tax obligations and the strategies available for minimisation.
- Sole Traders and Partnerships: Taxed at personal income tax rates on profits. Partnerships allow income sharing.
- Companies: Taxed at a flat corporate rate, which can be advantageous for retained earnings.
- Trusts: Offer flexibility in distributing income to beneficiaries, potentially allowing for income splitting.
Consulting a tax professional, like Growth iQ, to determine the most advantageous structure aligning with your long-term goals is a key tax planning step.
The Impact of Timing Income & Pre-paying Expenses
Being smart about when you report income and expenses can help lower your taxable income. This strategy often involves deferring income or pre-paying certain expenses.
Pre-Paying Subscriptions:
If your business uses software or services billed monthly, consider switching to an annual subscription before June 30. Paying upfront for a full year not only often comes with a discount but also allows you to claim the full expense in the current financial year.
Pre-Paying Membership Fees:
If you’re part of a professional association that offers a yearly membership fee, paying this before the financial year ends means you can claim the cost sooner.
Pre-Paid Rent:
If you lease a commercial space, consider paying next quarter’s rent before the end of the financial year. As long as the payment is made before June 30, you can claim the deduction in the current year.
Planning when to report income and expenses can really help with cash flow and keep your tax bill down. Just make sure you’re following the rules, though, because not all pre-payments will count as a deduction. It’s always a good idea to check with a tax expert before making any big moves.
Strategic Year-End Tax Planning & Expert Guidance
Effective planning before the end of the financial year can reduce your tax bill, boost your cash flow, and strengthen your overall financial position.
Tax planning is a proactive way to manage your tax obligations and maximise your after-tax wealth. In a high-cost environment with rising interest rates and inflation, it’s more important than ever to preserve capital and allocate resources wisely.
For a deeper dive, see our guide: Why Tax Planning is Essential for Protecting Your Wealth and Managing Your Tax Effectively
Talk to a Tax Expert at Growth iQ
Each year brings unique challenges and opportunities, and the best results come from acting before 30 June. After that, it’s too late to influence your 2024–25 tax outcome.
At Growth iQ, our Adelaide-based accountants specialise in proactive, tailored tax planning for small businesses and family groups. Contact us today to ensure your business is well-prepared for the EOFY.