EOFY 2025: Essential Tax Planning Tips for Private Business Owners

Whether you run a trade-based business, professional services firm, retail or hospitality outlet, or operate in manufacturing or distribution, smart end-of-year tax planning can make a big difference to your cash flow and future growth. Consider the following when planning to maximise your tax advantage for the end of financial year 2025:

$20,000 Instant Asset Write-Off Extended

An EOFY win for small business owners is the extension of the $20,000 instant asset write-off until 30 June 2025. If your business has an annual turnover of under $10 million, you can immediately deduct the cost of eligible assets valued at under $20,000.

This applies to:

• Tools, equipment, or business machinery
• Office furniture and IT hardware
• Point-of-sale systems and software
• Low-cost vehicles (subject to car limit)

Tip: The $20,000 threshold applies to each asset, allowing you to write off multiple items within the same financial year. Just ensure the assets are installed and ready for use by 30 June 2025.

Assets costing over $20,000 can still be added to the simplified depreciation pool and depreciated at accelerated rates.

Super Guarantee Increase from 1 July 2025

From 1 July 2025, the Superannuation Guarantee (SG) rate will rise from 11.5% to 12%. This affects every business that employs staff and will increase your super contributions from the start of the new financial year.

Ahead of this date, ensure you:

• Update your accounting software and payroll systems
• Review wage budgets
• Communicate any relevant changes to your team

Fringe Benefits Tax (FBT) Changes in 2025

FBT remains an important consideration for businesses that provide non-cash benefits to employees.

Updates for 2025 include:

• Plug-in Hybrid Electric Vehicles (PHEVs) are no longer exempt from FBT from 1 April 2025, unless you have a binding commitment before that date.
• Corporate record-keeping can now be used in place of declarations for certain fringe benefits such as travel or meals.
• Clarified rules around car parking fringe benefits, especially regarding what counts as a “commercial parking station.”

If you provide staff vehicles, accommodation or entertainment, review your FBT obligations with your accountant or tax adviser.

GST Compliance: Pay Attention to the Details

The ATO continues to monitor GST reporting accuracy. Common risk areas for businesses include:

• Claiming GST on personal assets, or where a compliant GST tax invoice is not held.
• Gift vouchers and bundled services – GST must be allocated correctly across each component
• Accounting method mismatch – Check whether your business reports for GST purposes on a cash or accruals basis, and ensure your accounting software aligns with it
• Not remitting GST on sales of capital assets
• Treating supplies of goods as “GST-free exports” when the goods are either not exported directly by your business, or are exported after 60 days of being invoiced
• Incorrect treatment of transaction “adjustments” on land or business sales – for example, long service leave and annual leave, rental related, and rates and taxes – that can change the consideration received
• Treating business sales or sales of leased assets as a GST-free supply of a “going concern” without an appropriately worded agreement, or where everything needed for continued operation of the business is not being supplied.
• Incorrect application of GST (and property sale GST withholding rules) to supplies of vacant land, existing residential premises, renovated premises and new residential premises. (It is particularly important to ensure the wording of GST clauses ensures you are not responsible for underpaid GST).
• Lack of a reconciliation that shows transactions recorded in your accounts match transactions with an allocated GST tax treatment.

Staying on top of GST helps avoid audit risk and late payment penalties.

Payroll, Wages & Staff Compliance

As the financial year comes to a close, now is an ideal time to ensure that your payroll processes are accurate and compliant. Some action items include:

• Reconcile PAYG withholding and superannuation
• Confirm correct employee classifications
• Review leave balances and award entitlements

Minimum Wage Increase from 1 July 2025

The national minimum wage will increase to:

• $24.16/hour for full-time and part-time employees
• $30.20/hour for casuals (inclusive of the 25% casual loading)

If your business operates under a Modern Award, check for specific updates to base rates and penalty loadings that apply to your industry.

R&D Tax Incentive: Still Relevant for Business

Many private business owners overlook the Research & Development (R&D) Tax Incentive, assuming it only applies to scientific or advanced technology companies.

The incentive does need an aspect of new knowledge or new product creation and it also has a requirement for the conduct of trial activities to resolve uncertainty.  However, a wide range of activities can qualify businesses for a claim.

Common claim areas include:

• Development of new physical products – including cast products, electronic products, new food and beverage variants, or new chemical or nutrient products.
• Software or digital tool creation
• Process improvements or automation activities that resolve existing production problems.
• Sustainable packaging or materials testing

If your project involves technical uncertainty and a structured testing process, it may qualify. For companies with a turnover under $20 million and tax losses, the incentive can provide a 43.5% refundable tax offset on eligible R&D expenditure.

Its best to keep some records of your development activities, trial work and incurred costs to support your claim. If you need assistance, we can help you to prepare and lodge a claim.

You can lodge claims any time after 30 June.  The claim is obtained through lodgement of your tax return, so consider whether bringing forward the lodgement of your ITR can accelerate receipt of any R&D refund.

EOFY 2025 Business Tax Checklist

Here’s a practical checklist to guide your end-of-financial-year planning:

Capital & Assets

• Purchase and install eligible assets under $20,000
• Claime second element costs on previously written-off assets
• Review depreciation pool balance and write-off eligibility

Payroll & Super

• Prepare for Super Guarantee increase to 12% (from 1 July 2025)
• Update wage rates for the 1 July 2025 minimum wage increase
• Review employee classifications, leave, and PAYG compliance

Fringe Benefits

• Review FBT impact of vehicles, perks, and accommodation
• Apply new rules for PHEVs, car parking, and record-keeping

GST & Accounting

• Confirm correct GST treatment of deposits and packages
• Verify accounting method (cash or accruals) is appropriate
• Check accounting software is up to date and compliant

R&D Eligibility

• Think broadly about your activities to ensure you identify and consider all eligible innovation or development work
• Maintain records of trials, testing, or technical problem-solving
• If you need help, speak to us about lodging an R&D claim

Final Thoughts

Smart EOFY tax planning isn’t just about ticking compliance boxes. It’s an opportunity to reset, invest, and position your business for success in the new financial year. With so many moving parts: super changes, asset deductions, staff obligations, now is the time to speak to your accounting adviser and take control of your tax position.

Need guidance with your tax planning strategy? Our Business Services and Tax Consulting Teams work with private business owners across Australia to simplify compliance, manage tax risk, and uncover growth opportunities.