Is your business tax ready for 30 June 2025?

It’s almost Tax Time again. The 2025 financial year is coming to an end and it’s time for you to start thinking about completing your 2025 Income Tax Return.

What you need to know

In preparing for your 2025 Business Income Tax Return, you should consider the following:

• Instant Asset write-off. Enabling legislation has extended the $20,000 small business instant asset write-off (IAWO) for another 12 months to 2024–25. This allows small businesses with an aggregated turnover of less than $10 million to immediately deduct the cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use for a taxable purpose by 30 June 2025. The Government has announced that it will extend the $20,000 IAWO for a further 12 months, to 30 June 2026. This extension has yet to be legislated, leaving small businesses uncertain again about the final form of the IAWO for 2025–26 and when it will become law.

• Prepay expenses. For expenses covering no more than 12 months, an immediate deduction is generally available. This may include prepayments for insurance premiums, phone and internet services, subscriptions to trade or professional bodies and rent on your business premises.

• Delay invoicing. Deferring taxable income to the next financial year can help cut your tax in the current financial year

• Write-off bad debts. While no business wants to be in a position where they can’t recover a debt, it does happen. If your business has to write off a debt, a tax deduction is available for the amount of the debt written off.

• Pay superannuation. Ensure all June quarter superannuation contributions are paid by 30 June to accelerate your tax deduction. To meet this requirement, the contributions must be paid, cleared in the business bank account and received by the employee’s super fund before 30 June. 2025 fourth quarter superannuation contributions are due on 28 July 2025

• Finalise 2025 Income Statements. Employers must make their income statement(s) finalisation declaration by 14 July each year to ensure their employees can access their finalised information to complete their income tax return.

• Get the right trading stock valuation. Damaged and obsolete stock can be written down or written off entirely and a tax deduction claimed.

• Record keeping is the foundation of all declared business income and expenses. You must have a record to substantiate the income and deductible expenses reported in your annual business tax return.

What you need to know – Superannuation

In preparing for your 2025 Income Tax Return, you should consider the following:

• If you have made tax deductible superannuation contributions in the 2025 financial year (maximum $30,000), please ensure that you have completed and submitted the ‘Intent to Claim’ form with your Super fund.

The key Super changes for the 2025-26 financial year

• From 1 July 2025, the Superannuation Guarantee (SG) rate increases from 11.5% to 12%.

• The maximum tax deductible superannuation contributions (Concessional Contribution Cap) will remain at $30,000.

• The maximum non-deductible superannuation contributions (Non-concessional Contribution Cap) will remain at $120,000.

• The Transfer balance cap increases to $2,000,000.

• The Capital Gains Tax cap increases from $1,780,000 to $1,865,000. This cap is a lifetime cap that applies to contributions made by a member for their benefit where the contribution is sourced (directly or indirectly) from a small business capital gains tax being either the 15-year concession or the retirement concession.

Get Ready

For your convenience, we have prepared a 2025 Small Business Taxation Checklist . To assist in preparing your 2025 income tax return, you should to review this checklist.

Don't be too eager

The Australian Taxation Office (ATO) has recommended that taxpayers should not be too eager to complete their tax returns this year and ensure that all their information is accurate before lodging their 2025 income tax returns. According to the ATO, information collected by the ATO may not be finalised until late July 2025. Your 2025 income tax return should not be completed without this information. As a result of ATO recommendations and restrictions, we suggest that you make your appointment from 1 August 2024.

Time to meet

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2025 tax time appointment

At National Taxation, we're great listeners and we know that every single one of our clients are unique. We have a proven track record and are well equipped with the latest knowledge to ensure that your income tax return is prepared in the most professional manner, at a reasonable cost. Our objective is always to maximise your TAX REFUND. We look forward to being of service to you.

Disclaimer

The information presented is general in nature and not to be used, relied or acted upon without seeking professional advice to ensure that the information appropriate for your individual circumstances. National Taxation accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. www.nationaltaxation.com.au ABN 63 665 545 130.