As we approach the end of financial year, we thought we would take the time to remind clients of some year end tax planning tips that could be of some benefit to you.

Superannuation

• Make contributions by 30/6/25 in order to be able to claim a tax deduction in 2025. Bear in mind funds could take up to 10 days to clear form the Super Stream system so allow plenty of time.
• Consider topping up contributions to the maximum deductible amount of $30,000. These can be made as personal contributions so a salary sacrifice may not be required. For those with a super balance of under $500k and unused cap space from prior years, you may be able to make additional contributions. If needed, we can check any cap space you may have available. Be careful if you have multiple contribution sources including insurance policies under superannuation structures.
• The deductible cap will remain at $30,000 from 1/7/25 for those wishing to maximise their cap with salary sacrifice arrangements.
• Consider non-concessional contributions to accelerate your super balance. Note for those aged under 75 the bring forward provisions are now in play.
• Ensure pensions are drawn before 30/6/25.
• The SGC rate increases to 12% from 1/7/25 so you will need to make payroll amendments for July pay runs. We are seeing escalation of SGC action at small business level now.
• If you are selling your principle residence, be aware of the $300,000 down sizer contribution that is allowed.
• In regard to the proposed Division 296 Tax on Superannuation balances over $3M, we are monitoring the situation and will develop personal strategies for clients impacted, noting that we have until 30/6/26 to make withdrawals if required for tax planning.

Business Asset Purchases

• The instant asset write-off allows the instant write-off of asset purchases for small businesses as long as they are installed and ready for use by 30/6/25 if you want to claim in the current tax year. The write off is $20,000 and will only apply where turnover is under $10M.
• Bear in mind motor vehicles are subject to the depreciation cost limit of $69,674 for 2024/25.

Company Tax Rate

• Tax rates for base rate companies with turnover of under $50m remains at 25% and for other companies 30%.

Single Touch Payroll

• All employers should be STP compliant now. Remember to reconcile and prepare STP finalisation in early July.

Expense Issues

• Consider writing off and scrapping old or obsolete stock.
• Consider the write off bad debts. This needs to be cleared from your debtor’s ledger to be effective.
• Consider prepayments where turnover is under $50m.
• Review asset registers for any scrapped items.

Capital Gains Tax Events

• A reminder that CGT is assessed on exchange date and not settlement. Consider the timing of asset sales as to which year you want to receive a capital gain if you can smooth personal income. If selling shares, you may want to split the sale over 2 years if it helps access lower personal tax rates.

Payroll Tax

• Review to ensure you have not triggered registration thresholds which stand at $1.2m in NSW. Note there has been substantial OSR audit activity, in particular targeting contractor arrangements in industries such as medical, fitness and real estate.

Trustees

• A reminder that trustees should record their distribution decisions at 30 June each year.

The above is a very brief summary of planning tips, and before implementing any strategy we recommend you contact us to seek advice specific to your position.

Date of issue 18 June 2025.

Important: Clients should not act solely on the basis of the material contained in this newsletter. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.