In preparation for the end of financial year approaching, the team at MJJ wanted to share with you our tips for getting ready and optimising your financial position this year.
- Bring forward expenses
You should consider advancing deductible expenses before 30 June, for example office supplies, subscriptions, paying for these before the end of the financial year will ensure they can be claimed in the current financial year.
- Instant Asset Write-Off
Businesses whose turnover is less than $10 million in the financial year ended 30 June 2025, can take advantage of the instant asset write off, for assets under $20,000. This can help reduce your taxable income.
- Declare Dividends
Declaring dividends can be a smart strategy to clear directors’ loans and access company cash. Ensure you have appropriate documentation and shareholder approval to stay compliant with tax regulations. If you are unsure of the tax implications from declaring dividends, this is best addressed as part of your overall tax planning strategy.
- Write off bad debts
Firstly, what is bad debt? A bad debt in a nutshell is a customer debt that cannot be collected. You will need to determine if you have taken reasonable steps to collect your debts. If you have then you would then need to write these debts off as an expense.
Examples of business bad debts:
- Loans to clients, suppliers, distributors, and employees
- Credit sales to customers, or
- Business loan guarantees
- Complete a Stocktake
Conducting a physical stocktake ensures accurate inventory records. So, you can adjust your records to reflect any discrepancies, write-offs, or obsolete stock (lost its value).
- Motor Vehicle Logbook
Making sure your Logbook covers at least 12 consecutive weeks and details the purpose of each trip. This ensures that personal and business use is accurately calculated.
- Work from Home Log
To claim the work from home deductions the ATO requires you to keep a record of the number of actual hours you work from home during the entire income year, for example a timesheet, roster or diary is sufficient documentation.
- Pay Super Contributions
Paying employee superannuation before 30 June lets you claim a deduction in the current year. Payments made after 30 June (and before 28th July) can still meet your obligations but won’t be deductible until the next financial year.
- Superannuation Deadlines
If you miss the 30 June deadline, make sure you pay super contributions by 28 July to avoid penalties and remain compliant with Superannuation Guarantee obligations. If paid after 28 July, you will have to complete a Super Guarantee Charge (SGC) statement.
- Process Final Pay Run & Complete STP Finalization
Making sure you have finalised your final pay run and employers reporting through Single Touch Payroll (STP) need to make a finalisation declaration by 14 July each year.
- Taxable Payments Annual Report (TPAR)
Businesses and government entities who make payments to contractors and are in the following industries: building and construction, cleaning, courier and road freight, information technology (IT) and security, investigation or surveillance may need to report contractor payments and lodge a Taxable payments annual report (TPAR). Contractors can include subcontractors, consultants and independent contractors. They can operate as sole traders (individuals), companies, partnerships or trusts. A TPAR must be lodged by 28 August each year.
The ATO provides guidance on how to work out if your business needs to lodge a TPAR.
If you have questions in relation to what strategies you should take action on before 30 June, please reach out to the MJJ team.
Comments are closed.