As the end of the financial year (EOFY) approaches in Australia, June is a critical time to get your finances in order, maximise tax deductions, and ensure you meet your reporting obligations. The EOFY, which ends on June 30, is not just about filing tax returns—it’s also an opportunity to review your financial position, set goals for the new financial year, and ensure you’re taking full advantage of available tax benefits.
Whether you’re an individual taxpayer or a small business owner, here’s a comprehensive guide to help you prepare for the EOFY in June 2025.
1. Organise Your Financial Records
One of the most important steps in preparing for EOFY is organising your financial documents. This includes gathering all necessary records to make tax time smoother and to ensure you’re ready to lodge your tax return.
For Individuals:
- Income statements: Ensure you have all your income statements, including your payslips, Payment Summaries (formerly Group Certificates), and any other income sources such as investment income, rental income, or government payments.
- Receipts and invoices: Gather receipts for work-related expenses, donations to charities, and other deductions you plan to claim, such as medical expenses (if eligible).
- Health insurance documents: Have your private health insurance statements on hand, as they may impact your tax return or Medicare levy surcharge.
- Investment records: If you’ve sold shares, property, or other investments, ensure you have the documentation to report any capital gains or losses.
For Small Businesses:
- Profit and loss statement: Ensure your accounting software or bookkeeper has produced an up-to-date profit and loss statement to reflect your income and expenses.
- Receipts for business expenses: Collect receipts for all deductible business expenses, including rent, equipment, travel, utilities, and other operating costs.
- Payroll records: Ensure that your payroll records are accurate, including Superannuation Guarantee (SG) contributions for employees and any end-of-year pay summaries.
Organising your financial records early will save you time and stress when it’s time to lodge your tax return.
2. Maximise Your Tax Deductions
To minimise your taxable income and maximise your tax refund, it’s important to take full advantage of any deductions available to you before June 30, 2025.
For Individuals:
- Work-related expenses: If you’ve incurred expenses related to your job (e.g., uniforms, travel, home office expenses), ensure you claim them if they are eligible. Make sure you have receipts and records to support your claims.
- Charitable donations: Donations over $2 to registered charities are tax-deductible. Ensure you have receipts for any donations made during the year.
- Prepaid expenses: If you know you’ll have deductible expenses in the next financial year (such as professional memberships or subscriptions), consider paying them before June 30 to bring forward your tax deduction.
For Small Businesses:
- Instant asset write-off: As of 2025, small businesses can claim an immediate deduction for purchases of eligible assets, up to a certain threshold, under the instant asset write-off scheme. Review your capital needs and consider purchasing assets before EOFY to reduce your taxable income.
- Prepay expenses: Small businesses may be able to claim deductions for prepaid expenses like rent, insurance, or advertising if they pay them before June 30.
- Superannuation contributions: Ensure super contributions for employees are paid before June 30 to claim them as a deduction in the current financial year.
3. Contribute to Superannuation
Contributing to superannuation is a great way to reduce your taxable income and save for retirement. By making personal contributions to your superannuation account before June 30, you may be able to claim a tax deduction for these contributions, up to the annual cap.
For Individuals:
- Concessional contributions: These are pre-tax contributions, including your employer’s super guarantee and any salary-sacrifice contributions. The annual cap for concessional contributions in 2025 is $27,500. If you have unused cap space from previous years, you may be able to carry it forward and contribute more this year.
- Non-concessional contributions: These are after-tax contributions that are capped at $110,000 per year. While you won’t get a tax deduction for these contributions, they can help boost your retirement savings.
For Small Business Owners:
- Superannuation for yourself and employees: Ensure all superannuation payments for employees and your own contributions are made before June 30 to take advantage of deductions. Remember, contributions must be received by the superannuation fund by June 30 to count for the 2024-2025 financial year.
4. Review and Optimise Investments
EOFY is the perfect time to review your investments and assess their performance over the past year. This includes any investments in shares, property, or managed funds.
- Capital gains and losses: If you’ve sold any investments during the year, you’ll need to report the capital gains or losses in your tax return. If you have unrealised losses, you may consider selling poorly performing assets before June 30 to offset any capital gains and reduce your tax liability.
- Investment deductions: Don’t forget to claim any deductions related to investment expenses, such as interest on investment loans, management fees, and costs associated with maintaining rental properties.
5. Small Business Tax Planning Strategies
For small business owners, EOFY is an ideal time to evaluate your tax planning strategies and ensure your business is operating in the most tax-efficient manner.
- Structure your business for tax efficiency: If you’ve experienced significant growth or changes in your business, it may be time to review your business structure. Speak to a tax advisor to see if switching to a company or trust structure could provide tax advantages.
- Deferral of income: If your cash flow allows, consider deferring some of your income to the next financial year (e.g., delaying invoicing until after June 30) to reduce your taxable income for the current year.
- Employee bonuses and salary sacrifice: If you plan to reward employees with bonuses, consider timing these payments before June 30 to take advantage of tax deductions. Additionally, review any salary sacrifice arrangements with employees, such as contributions to superannuation, to ensure they are tax-effective.
6. Lodge Your Tax Return on Time
Once June 30 has passed, it’s time to prepare and lodge your tax return. The deadline for individuals to lodge their tax return for the 2024-2025 financial year is October 31, 2025. However, if you use a registered tax agent, you may be eligible for an extension beyond this date.
For Individuals:
- Use myTax: Most Australians can lodge their tax return online using the ATO’s myTax platform. It’s user-friendly, and many details, such as income from employers and government benefits, are pre-filled.
- Seek professional advice: If your tax situation is complex or you want to ensure you’re claiming all eligible deductions, consider using a registered tax agent or accountant to help you lodge your return.
For Small Businesses:
- Meet your BAS and GST obligations: Ensure that your Business Activity Statements (BAS) are up to date and that you’ve lodged any required GST returns.
- Use accounting software: Many small businesses use accounting software like Xero, QuickBooks, or MYOB, which can make it easier to track income, expenses, and deductions throughout the year. If you don’t already use one, consider investing in accounting software to simplify your tax reporting.
Staying On Top of Your Finances is Key
The end of the financial year can be a busy time, but with careful planning and organisation, you can make the most of tax-saving opportunities and set yourself up for financial success in the year ahead. Whether you’re an individual or a small business owner, the key to a smooth EOFY is staying on top of your finances, maximising your deductions, and ensuring all your records are in order.
If you’re unsure about any aspect of your tax obligations or how to optimise your tax strategy, seek advice from a registered tax agent or financial advisor. With the right approach, EOFY 2025 can be a time to strengthen your financial position and prepare for the new financial year with confidence.