Every year, at the dawn of June 30, taxpayers in Australia rush to balance their books and analyse their tax liabilities. Whether you’re a salaried individual, a small or a mid-size business owner, you still have time to make smart moves to save big on taxes.
In this guide prepared by our expert and best Blacktown tax accountants, you’ll learn about some last-minute strategies to save big on taxes before the end of this financial year.
Boost Superannuation First
Firstly, consider boosting your superannuation contributions right away. Personal concessional contributions, up to the annual cap of about $30,000, let you deduct from taxable income. Importantly, super funds tax these at lower rates, which saves you money overall.
Prepay Key Expenses Now
Prepay eligible expenses like insurance, rent, subscriptions, or interest on investment loans. For self-employed people or property investors in Australia, you can advance up to 12 months’ worth and claim the deduction immediately. As a result, the tax benefit shifts to this year.
Accelerate Your Work Deductions
Purchase work-related items such as tools, uniforms, electronics, or self-education courses before June 30. Both employees and sole traders can claim these rights. Therefore, buying planned needs now lets you deduct in your FY25-26 return instead of delaying.
Use Instant Asset Write-Off
Small businesses with a turnover under $10 million benefit from the instant asset write-off. You get immediate deductions for assets up to $20,000 that you first use by June 30, like new equipment or vehicles. Consequently, this boosts your operations while cutting taxes now.
Defer Income Wisely
On the other hand, defer income where you can. For example, push bonuses, invoices, or investment payouts like term deposit interest past June 30. Contract dates for asset sales also decide the tax year, so aim to delay them. As a result, this moves income to next year, where you might face lower tax rates. It’s a straightforward way to smooth out your liability.
Claim Donations & Bad Debts
Furthermore, make donations to registered charities for tax offsets; anything over $2 counts. Businesses can also write off uncollectible debts before EOFY. Both options add up quickly without high costs, as long as you keep receipts.
Save Big On Tax Before This Financial Year Ends With Prowess Business Advisors
Prowess Business Advisors, one of the most trusted and reliable accountants and bookkeepers in Castle Hill, offers everything you need to grow your business.
We are a team of financial experts who understand the problems businesses face in managing finances and offer strategic financial guidance, tax efficiency, compliance expertise and other practical financial solutions.
Our client-centric approach ensures that you receive personalised, expert-driven solutions tailored to your needs.
Whether you want to streamline your financial process or save big cash, we’re your most trusted business partner.
Contact Prowess Business Advisors today and save your hard-earned money on taxes before this financial year ends!
Frequently Asked Questions
1. What can I claim as a tax deduction?
You can claim tax deductions for expenses that are directly related to your earnings. However, to claim a deduction, you must have spent the money on yourself and business, have proper records, and not been reimbursed.
2. How much tax does a small business pay?
Small businesses in Australia with an annual turnover of less than $50 million have to pay a reduced amount of corporate tax at a rate of 25% instead of the standard 30% rate. Sole traders and partnerships can also claim a more beneficial 16% income tax offset as well.
3. What should I do before June 30 to reduce my tax in Australia?
Our experts at Prowess Business Advisors suggest making personal super contributions, prepaying expenses like subscriptions and insurance, buying work-related items, donating to charity, selling underperforming investments, and taking expert guidance.