As the 2024–25 financial year draws to a close, there’s no better time to take control of your finances with thoughtful, strategic planning. Whether you’re an individual taxpayer, a sole trader managing a growing enterprise, or a business owner navigating complex financial responsibilities, end-of-financial-year (EOFY) preparation is essential to making the most of every opportunity available to you.
By carefully reviewing your income streams, operating expenses, investment activity, super contributions, and entitlements, you can significantly reduce your taxable income, maximise eligible deductions and offsets, and take full advantage of any available tax concessions.
Early preparation also helps avoid the stress of last-minute decisions and the risk of errors or overlooked opportunities that could impact your financial outcomes.
Why EOFY Planning Matters
For businesses, effective EOFY preparation ensures compliance with Australian Taxation Office (ATO) requirements, allowing businesses to reassess budgets, cash flow, inventory, and investment strategies, paving the way for smarter decision-making.
For individuals, EOFY is a chance to organise tax documents, claim eligible deductions, and potentially boost superannuation contributions.
Minimise tax legally by claiming deductions and offsets you’re entitled to.
Boost your refund with smart super and investment strategies.
Ensure compliance and avoid red flags that may trigger an ATO audit.
Plan future growth for your business or personal wealth.
1. EOFY Tax Planning for Individuals
A. Review Your Income and Deductions
Begin by estimating your total income for the financial year. Then carefully review and maximise your eligible deductions, which may include:
1. Work-related expenses: Claim costs that are directly related to your current employment, such as uniforms, tools, work-related travel, training, and work-from-home expenses. Ensure all claims are well-documented and meet ATO guidelines.
2. Home office expenses:
- Fixed Rate method: Using the fixed rate method, you can claim 70 cents per hour (for the 2024–25 income year) for each hour worked from home. This rate covers electricity, internet, mobile and home phone usage, and depreciation of home office equipment.
- Actual Cost method: The actual cost method allows you to claim specific work-related expenses, including depreciation on assets such as desks, chairs, computers, and phones, as well as internet, electricity, stationery, and cleaning costs. If items are used for both work and personal use, distribute the costs accordingly.
- Occupancy expenses: In limited cases (e.g. if your home is your actual place of business), you may also be eligible to claim mortgage interest, rent, or insurance as a deduction.
- Depreciating assets: Assets used mainly for work that cost $300 or less can be claimed as an immediate deduction. For assets over $300, claim deductions over their effective life.
3. Education expenses: Self-educating expenses may be tax-deductible if they directly relate to your current employment and are intended to enhance your skills or knowledge.
Eligible courses can include those provided by educational institutions (regardless of whether they lead to formal qualifications), industry or professional organisations, work-related conferences or seminars, and even self-paced learning or study tours, whether in Australia or overseas.
- To claim a deduction, you must have personally paid for the expense without reimbursement, and it must be clearly connected to earning your income.
- Acceptable deductions can include course fees, textbooks, internet usage, and other related costs. However, you can only claim the work-related portion of these expenses any private or unrelated component is not deductible.
- It’s important to keep records, such as receipts, to substantiate your claims. If your total claim for work-related expenses exceeds $300, written evidence is required for all items claimed.
4. Charity donations: Donating to a Deductible Gift Recipient (DGR) is a meaningful way to support a worthy cause while potentially reducing your taxable income.
When you donate money (or sometimes property) to a registered deductible gift recipient (DGR), you can claim amounts of $2 and above as a tax deduction. The more tax you pay, the more valuable the tax deductible donation is to you.
If you plan to make a donation before 30 June 2025, ensure the organisation is registered as a DGR and that you keep a valid receipt for your records. A full list of eligible DGRs is available on the Australian Taxation Office (ATO) website.
Accurate and detailed records are essential. The ATO has increasingly focused on substantiating claims, especially for home office and travel deductions.
B. Superannuation Contributions
Making personal super contributions is a smart way to reduce your taxable income while boosting your retirement savings. For the 2024–25 financial year, the concessional contributions cap is $30,000, which includes employer contributions and any salary sacrifice amounts.
If your total concessional contributions fall below this cap, you may be eligible to make a personal deductible contribution. To claim this deduction, you must complete the appropriate ATO form (Section 290-170 notice), submit it to your super fund, and receive written acknowledgement before lodging your tax return.
If your total super balance is under $500,000, you can also carry forward any unused concessional cap amounts from the past five years, allowing you to make larger one-off contributions and benefit from additional tax savings.
C. Medicare Levy Surcharge
Singles and families without sufficient private health insurance may be subject to the Medicare Levy Surcharge (MLS). This additional tax is based on your income level and applies if you earn above certain thresholds and do not hold an eligible private hospital cover. The current income thresholds are outlined in the table below:
D. Accounting fees
2. EOFY Tax Planning for Businesses
A. Maximise Deductions Before 30 June
Businesses can lower their taxable income by bringing forward expenses into the current financial year.
Prepay Expenses: Bring forward deductible expenses like rent, insurance, and professional subscriptions by prepaying them for the upcoming financial year. This allows you to claim the deduction in the current year and reduce your taxable income.
Write Off Bad Debts: Review your accounts receivable and write off any debts that are unlikely to be recovered. This ensures your financial statements accurately reflect your business position and helps reduce taxable income.
Conduct a Stocktake: Complete a thorough stocktake and write down any obsolete, damaged, or slow-moving inventory. This can lead to valuable deductions and improve inventory accuracy.
Pay Superannuation On Time: Ensure superannuation contributions for employees are paid and received by their funds before 30 June. Only payments received by the deadline are deductible this financial year.
Maximise Super Contributions: Make full use of concessional superannuation contribution caps for both you and your employees. Super contributions remain one of the most tax-effective ways to lower taxable income.
Pay Committed Staff Bonuses: If you’ve committed to paying staff bonuses or commissions, ensure they are paid or formally documented before EOFY to secure a deduction this year.
Use Small Business Tax Concessions: Eligible small businesses can access a variety of tax concessions, including instant asset write-offs and simplified depreciation. Don’t miss out, check your eligibility and apply them where possible.
Claim All Available Deductions: Be thorough in claiming all eligible business expenses, including travel, depreciation, and the business-use portion of mixed-use assets.
Invest in Energy-Efficient Upgrades: If your business has a turnover under $50 million, you may be eligible for an additional 20% tax deduction on eligible expenses that support electrification and energy efficiency. It’s a smart move that benefits your bottom line and the planet.
B. Instant Asset Write-Off
Great news for small businesses, the instant asset write-off threshold of $20,000 has been officially extended until 30 June 2025. This legislation, passed on 26 March 2025 just before the federal election was called, applies to businesses with an aggregated annual turnover of less than $10 million.
Under this measure, eligible businesses can immediately deduct the full cost of each depreciating asset, new or second-hand costing less than $20,000, in the year the asset is first used or installed ready for use. There is no limit to the number of assets that can be claimed, as long as each individual asset is under the $20,000 threshold.
This incentive provides a valuable opportunity to invest in equipment, technology, or tools your business needs, while also reducing your taxable income for the financial year.
C. Superannuation Guarantee Compliance
From 1 July 2024, the Super Guarantee rate increased to 11.5%. All eligible employees must receive this rate, with payments made quarterly.
To claim super payments as deductions in the 2024–25 financial year, contributions must clear the super fund by 30 June 2025. Late payments can attract penalties and interest, and you can lose the tax deduction, so ensure your payroll system is up to date.
D. Claim Everyday Operating Expenses
Your regular operating costs can significantly reduce your taxable income when managed wisely. Common tax-deductible expenses include advertising, utilities, accounting services, business premises costs, public relations, travel & vehicle expenses employee wages, staff training, and insurance premiums. Even smaller, often-overlooked costs like your software subscription or branded staff uniforms can provide valuable deductions over time.
As a general rule, if an expense helps your business generate assessable income and isn’t for personal use, it’s likely claimable. Just remember to keep accurate records, even for purchases under $82.50, to ensure you can substantiate every claim.
E. Reconcile Income and Expenses
Ensure all income and expense transactions are accurately recorded and properly categorised by reviewing invoices, receipts, and payments.
Misclassified or missing entries can affect your financial statements and tax returns, potentially triggering audits or penalties. Using financial software can provide real-time insights, helping you spot errors early and manage cash flow more effectively.
F. Prepay to Bring Forward Deductions
Consider prepaying up to 12 months’ worth of expenses such as rent, insurance, or subscriptions before 30 June. This strategy could allow you to claim the full deduction this financial year, helping to reduce your current taxable income.
To be eligible, your business must have an aggregated turnover under $50 million, and the services must be delivered within 12 months of the payment.
G. Wait for ‘Tax Ready’ Status Before Lodging
As an employer, you must complete your Single Touch Payroll (STP) finalisation by 14 July 2025 to ensure your employees’ tax and super details are correctly reported on their income statements.
Remind your staff not to lodge their tax returns until their income statement is marked ‘Tax Ready’. Lodging too early with incomplete data could mean they’ll need to make amendments later if the finalised figures change.
3. Record Keeping Essentials
Keeping well-organised records is essential for protecting your tax position and meeting your compliance obligations in the event of an ATO review or audit. Clear, consistent documentation can be the difference between a smooth tax season and costly complications.
To stay compliant and stress-free, make sure you retain the following key documents:
Invoices and receipts for expenses
Bank statements showing proof of payments, income deposits, and PAYG summaries
Detailed mileage records to support vehicle-related claims
Evidence of Income and Capital Gains including dividends, investments, and sale of assets
Payroll and super records
Private health insurance details for claiming applicable tax offsets
Receipts for work-related expenses such as uniforms, tools, home office costs, and training
- Trust resolutions and partnership agreements (if applicable)
The ATO requires these records to be kept for a minimum of 5 years from the date you lodge your tax return. You can use reliable accounting software to streamline compliance, make retrieval easier, and simplify reporting during tax time.
EOFY 2025 presents a valuable opportunity to take control of your financial position. Whether your goal is to minimise your tax liability, boost your superannuation, or reinvest in your business, the decisions you make now can deliver significant long-term benefits.
With ongoing changes to tax legislation and increased ATO oversight, staying informed and seeking professional advice has never been more important. Smart EOFY planning not only ensures compliance, it empowers you to enter the upcoming financial year with clarity and confidence.
