Last-Minute EOFY Tax Opportunities Most Businesses Miss
Last-Minute EOFY Tax Opportunities Most Businesses Miss
Live Tax Outline
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1. Prepay Deductible Expenses
If you're a small business (aggregated turnover under $50 million), you can prepay up to 12 months of deductible expenses and claim the full amount this financial year. Think business insurance premiums, rent on your office or workshop, software subscriptions (accounting, CRM, project management tools), professional memberships and trade association fees, and interest on business loans.
Call your insurer or landlord before 30 June and ask about paying the next 12 months upfront. The deduction lands in FY25, not FY26.
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Why it matters: This is one of the most straightforward timing strategies available, and most small businesses simply forget to use it.
📖 What do these words mean?
- DGR: Deductible Gift Recipient, an organisation the ATO has approved to receive tax-deductible donations.
2. Bring Forward Equipment Purchases: Instant Asset Write-Off
The instant asset write-off threshold for FY25 is $20,000 per asset for businesses with turnover under $10 million (confirm current thresholds with your accountant, as these are subject to legislative change). If you've been sitting on the fence about that new laptop, machinery, tools, vehicle fit-out, or office furniture, buy it before 30 June and write off the full cost immediately, rather than depreciating it over several years.
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The key rule: The asset must be installed and ready for use by 30 June, not just ordered or delivered.
3. Write Off Bad Debts
Cast an eye over your debtors ledger. If there are invoices that are genuinely uncollectable, a client has gone under, ceased trading, or is simply unresponsive, write them off formally before 30 June. To claim the deduction, you must make a genuine decision that the debt is bad (and document it), write it off in your accounting system before 30 June, and confirm the debt was previously included in your assessable income.
Why it matters: Don't leave bad debt sitting on the books out of habit. A properly written-off bad debt is a real, legitimate deduction.
4. Review and Write Down Obsolete Stock
If you carry inventory, a quick stocktake before 30 June can uncover a useful deduction. Identify anything that's obsolete, damaged, or worth less than its book value. You can value that stock at its current market value, even if lower than cost, and the reduction is effectively a deduction against this year's income. This is especially relevant for product businesses sitting on slow-moving or outdated lines.
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The Bottom Line: This is a low-effort exercise that often surfaces more tax benefit than business owners expect.
5. Top Up Super: For Yourself and Your Staff
For business owners and directors, the concessional contributions cap is $30,000 for FY25. If you haven't maxed it out, making a personal concessional contribution before 30 June can significantly reduce your taxable income. Super contributions are taxed at 15% inside the fund versus your marginal rate outside it, and the difference is often substantial.
For employees, Super Guarantee payments need to be received by the fund by 30 June to be deductible this financial year. Don't just lodge, check that the payment has actually cleared.
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Why it matters: This is one of the highest-impact strategies available to business owners and directors, and it benefits both your tax position and your retirement savings simultaneously.
6. Defer Income Where You Can
If your business operates on a cash basis, as most small businesses do, consider whether any invoices due in late June can legitimately be issued in early July instead. Income recognised in FY26 is taxed in FY26, giving you another full year before the liability falls due. This isn't about withholding invoices for completed work; it's about the timing of work you genuinely haven't finished, or payments that can legitimately wait a few days.
The key rule: The deferral must be legitimate and commercially reasonable. Backdating or deliberately misrepresenting timing creates real compliance risk.
7. Reconcile and Claim All Vehicle Expenses
If you use a vehicle for business, ensure your records are in order before 30 June. Under the logbook method, if your logbook is more than five years old or your usage patterns have changed, start a new 12-week logbook now. It doesn't have to finish before 30 June to be valid for the year. Under the cents per kilometre method, you can claim up to 5,000 business kilometres at the ATO's set rate, but you need records to support it.
Many business owners understate their vehicle deductions simply because they haven't tracked properly. A few minutes with your calendar reconstructing business trips before the year closes is worth the effort.
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Why it matters: Vehicle expenses are consistently under-claimed, and consistently scrutinised by the ATO. Accurate records protect both your deduction and your compliance.
8. Review Director Fees and Dividends
If your business is a company, consider whether paying a director's fee or declaring a dividend before 30 June makes sense for your structure and personal tax position. A deductible director's fee reduces company taxable income, but it also increases personal income, so the timing and franking must be carefully considered. This one genuinely requires a quick conversation with your accountant before acting, as the right answer depends heavily on your individual structure, income level, and franking credit position.
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Why it matters: Getting the timing wrong here can be costly. Getting it right can deliver meaningful tax savings at both the company and personal level.
9. Make Charitable Donations
Donations of $2 or more to DGR (Deductible Gift Recipient) organisations are fully tax-deductible. If there's a cause your business or you personally support, making that donation before 30 June gets it into this year's return. Check that the organisation holds current DGR status on the ABN Lookup or the ACNC register, as not all charities qualify.
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10. Have the Conversation With Your Accountant at JPR Now
This is the one most businesses leave too late. Your accountant at JPR Business Group can only work with what they know, and if you wait until July to mention a large contract you signed, a major purchase you're considering, or a change in your business structure, the window for tax planning has already closed. The team at JPR are here specifically to help Melbourne businesses get in front of these decisions before 30 June, not scramble after it.
Even a 20-minute call with your JPR accountant this week can surface strategies specific to your situation that no generic list will ever capture. Pick up the phone or book online, the EOFY window is still open, but not for long.
Why it matters: Proactive advice from your JPR accountant before 30 June is worth exponentially more than reactive advice after it. The strategies above are only available while the financial year is still open.
Your Quick EOFY Checklist
Work through these before 30 June. Tick each one off as you action it:
- Prepay up to 12 months of deductible business expenses
- Purchase and install eligible assets under the instant asset write-off
- Write off genuine bad debts formally in your accounting system
- Write down obsolete or damaged stock to current market value
- Review and top up concessional super contributions (personal and staff)
- Confirm SG payments have been received by employee super funds
- Defer any legitimately incomplete invoices to July
- Reconcile vehicle expenses and start a new logbook if required
- Review director fees or dividends with your accountant
- Complete any planned charitable donations to DGR organisations
- Call your accountant at JPR Business Group before 30 June
Act Before the Window Closes
Every strategy listed above is time-sensitive. Once 30 June passes, the opportunity to act is gone for another full year. At JPR Business Group, we help Melbourne businesses identify every legitimate deduction they're entitled to, ensuring you maximise your return while staying fully compliant. A conversation this week could make a material difference to your tax position this year.
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Disclaimer: This blog is for general educational purposes only and does not constitute formal financial or tax advice. Tax laws and thresholds change regularly and vary by individual circumstances. Always consult a qualified CPA at JPR Business Group regarding your specific EOFY affairs.