As the end of the financial year (EOFY) approaches, small businesses across Penrith and Western Sydney are preparing to get their finances in order. Tax planning isn’t just about meeting deadlines—it’s about maximising deductions, improving cash flow, and setting your business up for success in the year ahead.
This article outlines the most effective tax planning strategies for EOFY 2025, helping you minimise your tax bill while staying fully compliant with the Australian Taxation Office (ATO).
1. Review Your Financials Before 30 June
Start with a detailed review of your profit and loss statements, balance sheet, and cash flow.
Why this matters:
Identifies high-expense areas and income trends
Ensures all income is declared and recorded
Spots missing deductions or irregularities
💡 Work with a Penrith accountant to go through your figures in detail. A pre-June review gives you time to act before lodgement.
2. Maximise Deductions Before the Financial Year Ends
Take advantage of the deductions available now, rather than missing out post-June 30.
Key EOFY deductions:
Prepay expenses like rent, insurance, and subscriptions
Write off bad debts that can’t be collected
Claim asset purchases under the instant asset write-off (up to $20,000)
Pay employee bonuses or super before 30 June to claim them this year
💡 Even small purchases like software subscriptions or office supplies can add up to meaningful deductions.
3. Check Superannuation Obligations
Paying employee super on time is critical—and doing it before EOFY can also benefit your business.
In 2025:
SG rate is 11.5%, rising to 12% on 1 July 2025
Super paid after 30 June is not deductible in this financial year
Contributions must be received by the fund by 30 June to claim
💡 Make payments by mid-June to allow for fund processing delays.
4. Consider Deferring Income
If you’re a cash-based business, you may choose to defer income until after 1 July 2025 to reduce this year’s taxable income.
Example:
Delay issuing invoices until July 1 for work completed late in June
Consider holding off on completing large transactions where appropriate
⚠️ This strategy should only be used if cash flow remains healthy and the deferral is legitimate—not manipulated.
5. Review Your Business Structure
EOFY is a great time to ask: Is your current business structure still the best fit?
Sole trader
Partnership
Company
Trust
Each structure has different tax rates, reporting requirements, and liability protection.
💡 Your accountant can help you assess whether it’s time to switch for better tax efficiency or asset protection.
6. Write Off Obsolete Stock or Equipment
If you have:
Damaged, obsolete, or unsellable stock
Outdated equipment or furniture
… you may be able to write it off and claim a deduction.
Make sure you:
Document the items clearly
Remove them from your asset register or inventory
Provide photos or notes as proof of disposal
7. Prepare for ATO Review
The ATO’s compliance focus in 2025 includes:
Income accuracy
Work-related deductions
Superannuation obligations
GST claims
To reduce audit risk:
Ensure your records are complete and digital
Separate personal and business transactions
Keep detailed receipts and notes for every deduction
💡 Use the ATO’s 2025 Tax Time Toolkit or work directly with a registered accountant in Penrith.
8. Plan for July 1 and the New Financial Year
Start the new year strong by:
Updating your payroll software for the 12% super rate
Reviewing pricing to reflect higher supplier costs or wage changes
Setting financial goals and tracking them monthly
✔ Bonus Tip: Schedule a July meeting with your accountant to review first-quarter goals and forecast cash flow.
Conclusion
EOFY doesn’t need to be a headache. With some smart, proactive planning, small business owners can reduce their tax bills, prepare for ATO compliance, and enter the new financial year with confidence.
Need help implementing your EOFY strategy? Carmody Accounting supports local businesses across Penrith and Western Sydney with personalised, compliant, and results-driven tax advice.
