As the end of the financial year draws closer, it’s the perfect opportunity to get ahead and put strategic plans in place to maximise your tax position. At AJ Buckingham & Associates, we specialise in helping growth-minded small to medium-sized business owners reduce tax, reclaim time, and build sustainable financial confidence. If you’re a business owner, here’s what you can do right now to finish strong and set up for success.
💡 Opportunities to Consider Before 30 June 2025
1. Delay Deriving Assessable Income
If it is possible, delay deriving income until after June 30, 2025 by:
a. Delaying the Timing of the generation of Income until after June 30.
b. Look at the timing of when Invoices are raised for incomplete work.
Of course, cash flow for your business is paramount but if this is not adversely affected, then consider deferring the recognition of income until after 30 June 2025. For example:
- Cash Basis Income – Some income is taxable on a cash receipts basis rather than on an accruals basis (e.g rental income or interest income in certain cases). You should consider whether some income can be deferred in those instances.
- Consider delaying your invoices to customers until after July 1 which will put that income into the next financial year and defer the tax payable on that income. If you operate on the cash basis of accounting you simply need to delay receiving the money from your customers until after June 30.
- Lump Sum Amounts – If a lump sum payment to you is likely to be received close to the end of a financial year, you could consider the question of whether this amount (or part thereof) can be delayed or spread over future periods.
2. Bringing Forward Deductible Expenses or Losses
Prepayment of Expenses – In some circumstances, a small business or individual who derives passive income (such as rental income and dividends) should consider pre-paying expenses prior to 30 June 2025. A tax deduction can be brought forward into this financial year for expenses like:
- Employee Superannuation Payments including the 11.5 % Superannuation Guarantee Contributions for the June 2025 quarter (that have to be received by your Superannuation Fund by June 30, 2025 to claim a tax deduction. Anything received by your Superannuation Fund after this date is not deductible in the 2024-25 financial year).
- Working from home. You will need to have kept records of the hours you worked from home. This is used to calculate the amount you can claim.
- Superannuation for Business Owners, Directors and Associated Persons.
- Wages, bonuses, commissions and allowances
- Contractor Payments
- Travel and accommodation expenses
- Trade creditors
- Rent prepayment for up to 12 months
- Insurances including Income Protection Insurance
- Printing, Stationery and Office Supplies
- Advertising including Directory Listings
- Utility Expenses – Telephone, Electricity & Power
- Motor Vehicle Expenses – Registration and Insurance
- Accounting Fees
- Subscriptions and Memberships to Professional Associations and Trade Journals
- Repairs and Maintenance to Investment Properties
- Self-Education Costs
- Home Office Expenses – desk, chair, computers etc.
- Donations to deductible gift recipient organisations
- If appropriate, consider prepaying any deductible investment loan interest. This could include interest payments on an investment loan for either an investment or commercial property or an investment portfolio you hold.
If you are planning to make any deductions like those listed above, then it is advisable that you discuss your plans with your accountant before you act. Also, such a deduction for prepaid expenses will need to be paid before 30 June 2025. Be careful, though, don’t purchase goods or services you will never use, and be aware of the effect of such spending on your cash flow.
3. Maximise Superannuation Opportunities
If you’re a low or middle-income earner making after-tax super contributions, you may be eligible for a government co-contribution. The amount depends on your income level and contribution amount, so be sure to check your eligibility. So be aware of any thresholds that relate to the Government’s co-contribution scheme.
4. Capital Gains and Losses
When it comes to capital gains tax, timing really does matter. It’s important to understand that the contract date—not the settlement date—is generally what determines which financial year a capital gain or loss is assessed in. So if you’re thinking about selling an asset, your decision should be aligned with both your cash flow and your broader investment strategy.
Here are some smart planning points to keep in mind:
- Hold for 12+ Months: If you’re expecting a capital gain, consider holding the asset for at least 12 months. This may make you eligible for the 50% CGT discount, significantly reducing your personal tax bill.
- Defer the Sale: If possible, postpone selling an asset with a gain until a future financial year—especially if your income is likely to be lower in that period. This could mean less tax overall.
- Offset Gains with Losses: If you’ve already realised a capital gain this year, think about bringing forward the sale of an underperforming asset that’s sitting at a loss. This can help reduce the total taxable amount.
And remember: capital losses can only offset capital gains—not other income. So timing and strategy are crucial.
✅ Summary
Strategic tax planning doesn’t need to be overwhelming. With the right advice, small business owners can take proactive steps to reduce their tax liability and improve their overall financial position.
From deferring income to prepaying deductible expenses and managing capital gains, these strategies are designed to work in your favour before 30 June 2025.
At AJ Buckingham & Associates, we partner with clients to implement tailored tax strategies that align with their business goals, not just their numbers.
