The current financial view is drawing to a close. Naturally, it is time that you should start thinking about paying your taxes. Many Australians assume that it is too late to make any meaningful changes after the month of June passes by. However, that is not true.
Even in the final weeks leading to the tax deadline 2025, you can take various practical steps to increase your returns and stay in compliance with the tax laws. Whether you are an employee or a business founder, these End-of-Financial-Year (EOFY) tips will help you to maximize your tax refunds this year.
Take Advantage of Instant Asset Write-Offs
In case you own a small business and it has a yearly turnover of less than $10 million, you can still manage to benefit from the instant asset write-off measure. Due to this rule, you can claim an immediate deduction of taxes for capital purchases that cost less than $20,000, instead of depreciating them over a few years. Some of the eligible purchases include:
- Tools,
- Office furniture,
- Computers and even
- Second-hand vehicles.
For an item to be eligible for the 2025 claim, it needs to be purchased as well as set up and made ready for use by 11:59 PM on June 30, 2025. Delayed deliveries or July installations will push your claim into the next financial year. Thus, it is best to invest now if you need new tools or tech for your business.
Maximise Home Office Deductions
You can get access to a wide range of deductions when you work from home, whether full-time or occasionally. You can claim expenses like:
- Heating,
- Cooling,
- Lighting,
- Internet,
- Stationery, and
- Depreciation of office furniture and equipment.
You can immediately claim the full amount for smaller purchases (less than $300). Items of bigger size must be depreciated over their effective life. Alternatively, you can choose the fixed rate of 70 cents per hour of the ATO, which covers various running expenses – such as phone usage, data and energy costs.
Keep in mind that you will need records of your working hours and supporting documents – such as receipts or utility bills. Keep all the details organized, given that the Australian Taxation Office needs enough proofs, to substantiate all work-from-home claims. A qualified accountant Wentworthville or a registered tax agent can detect eligible deductions that you may overlook.
Update Your Vehicle and Phone Records
Make sure that you have current and complete logbook in case you use your vehicle for work purposes. You need up-to-date entries of your work-related journeys in the logbook method. In the cents-per-kilometre method, you will need to keep a record of all your business trips. Your claims may not be allowed if you are unable to show these.
In the same way, if you use your personal mobile phone for work purposes, you can claim a percentage of your bills that show how much you have used your phone for professional reasons. Track your business calls and detail for at least a month for calculating your deductible portion. However, you should keep in mind that you cannot claim a separate mobile phone deduction in case you have applied for the 70-cent-per-hour fixed rate for home-office use already.
Make Charitable Donations
EOFY is also a great time to give back. If you have receipts, you can claim tax deductions for donations of $2 or more to registered charities. This will reduce your taxable income as well as let you support causes that make a real difference to the society. You should plan all contributions before June 30, so that it gets included in the tax return of the ongoing year.
Prepay Deductible Expenses
You can speed up your deductions if you prepare some of the expenses of the next year before June 30. This includes:
- Professional memberships,
- Insurance premiums, or
- Union fees
If you expect lower taxable income next year, prepayments can be especially useful. You can bring forward the deduction effectively, to maximize your current refund.
Make a Personal Super Contribution
When you contribute additional money to your superannuation fund before EOFY, it can be useful in two ways:
- Building your retirement savings and
- Offering a valuable tax deduction
You can make concessional (before-tax) contributions up to the annual cap of $30,000, which includes your employer’s contributions.
To be eligible, your payment needs to be processed by your front before June 30. Before lodging your tax return, you have to submit a “Notice of Intent to Claim” form to your super fund. To ensure timely processing, transfer funds at least one week before EOFY.
Offset Capital Gains with Capital Losses
In case you have sold property or shares at a profit, review your portfolio. Identify any investments that are generating losses. Try to sell them off before June 30, to offset those losses against your gains and reduce your taxable capital income.
But you should avoid “wash sales”, or selling assets just before EOFY and repurchasing similar ones immediately after. Such attempts to manipulate deductions are treated severely by the Australian Taxation Office. It may impose penalties on you.
Get Professional Help
Although DIY tax returns are possible, you can often save more with professional advice than it costs. Expert accountants can ensure your compliance with the latest ATO regulations. They can also help you interpret tools such as the ATO tax refund calculator 2025, which can estimate your return based on your income and deductions.
Tax professionals can give you proper advice on:
- Investment strategies,
- Super contributions, and
- Business asset planning
They can ensure that you are fully prepared for next year’s EOFY.
You can know about new deductions or incentives introduced for the Australian government 2025 tax refund program as well, and understand how changes in rules apply to your specific circumstances.
Final Thoughts
You have to be thorough with paperwork as well as strategic, when it comes to EOFY planning. With smart planning and professional support from a company like Prowess Business Advisers, you can easily meet the tax deadline and make the most of it.