As June 30th and the end of the financial year (EOFY) speeds towards us, it’s a great time to share our tax planning tips to help you maximise your tax-efficiency this financial year. After 80+ years of working with clients, both year-round and when crunch time comes each June, we’ve seen decades of policy, requirement, and regulation changes, and have helped countless clients identify opportunities to enhance their business’ profitability.
Our Clients’ Most Common EOFY Questions This Year
Each year, we hear from business owners and individuals looking for ways to enhance their tax efficiency before June 30th. For many of these clients, there are three ‘quick-win’ strategies that they can employ with relative ease:
Concessional Superannuation Contributions
This involves individuals making contributions to their super fund before tax is paid on them, either by making personal contributions or by salary sacrificing—a system set up by employers to automatically lodge income directly from an employee’s paid salary into their superannuation fund. Most working individuals in Australia are eligible to make concessional super contributions, and the benefit of doing so is that when these contributions are eventually paid, they are generally taxed at a lower rate (currently 15%) than regular income. Making these contributions pre-tax also lowers an individual’s annual taxable income, which for some, can help them drop into a lower tax bracket before EOFY (subject to Division 293 tax being applicable).
Carry-Forward Amounts
Carry-forward is another means of income maximisation that relates to concessional superannuation contributions. The current Concessional contributions cap is $30,000, but if an individual does not meet this amount in a financial year, they can carry the remaining balance forward into the following one (if their superannuation balance is less than $500,000 at 30 June of the prior financial year). For example, if an employee contributed $10,000 less than the cap in year one, they would be eligible to carry the remainder forward and add it to their cap in year two. Unused amounts can be carried forward for up to 5 financial years.
Thanks to the carry-forward 5-year allowance, those who don’t utilise this system annually can take full advantage of it in high income years—whether something in their employment situation has changed, or maybe the sale of an asset has led to a large one-off income event. They would be entitled to maximise their carry-forward allowance on concessional super contributions, writing-off as much income as possible to reduce their overall tax liability.
Instant Asset Write-Off
The instant asset write-off scheme has been a particular point of conversation and concern among our clients of late, due to changes to the restrictions. Currently, eligible business owners can instantly deduct the cost of purchases up to $20,000 on certain products, however, this is about to change.
As of June 30th 2025, the allowance will revert to a lower amount, which has historically been $1,000. While we can’t provide answers for what will happen with the instant asset write-off at this point, we can and are advising our clients to make eligible purchases before the cut-off date so that they can reap the tax benefits for the end of the current financial year.
How Can Business Owners Get Ahead for EOFY?
As with many aspects of business ownership, securing the best outcomes at the end of the financial year is dependent on preparation. Leaving tax planning until the last minute leaves little time for analysis and creativity, ultimately limiting success. Organisations that work with certified business accounts like Stones Sharp year-round are best-placed for tax maximisation each June.
As long-standing industry experts, Stones Sharp is well-positioned to act fast in identifying opportunities and implementing strategies. We already understand our clients and their businesses, along with objectives, goals, and restrictions—and facilitate semi-frequent holistic check-ins that give us opportunities to realign our strategy with the organisational needs. The sooner shareholders start this, the better their bottom line can be, and it’s never too late to start. A continuous strategy removes the stress felt by business owners as EOFY approaches, relieving that time pressure to make on-the-spot business decisions.
That’s how Stones Sharp helps our clients get ahead of the end of financial year stress—we take a dedicated approach with timely catch ups and tailored services to fit your needs. We help to Identify where the pressures are, and how we can realign our strategy to relieve them.
Stones Sharp’s Tips to Prepare for EOFY
Keeping in touch with your accountant is crucial to maintaining a successful tax strategy, but if you haven’t been able to keep on top of that this year, there are still some ways to maximise your tax efficiency this year:
- Meet with an accountant before June 15th-this will give you just enough time to iron out some basic tax planning before EOFY on June 30th.
- Think about the timing of purchases of materials and stock-if you want to write these off as tax-deductible expenses, you’ll need to be able to provide invoices and the item installed ready to use by June 30th.
- Consider making additional superannuation contributions, both concessional and non-concessional.
- Concessional contribution will lower your taxable income, subject to annual limits and age requirements.
- Strategically time customer invoices, accounting for the EOFY cut-off.
- Pay your superannuation guarantee before June 15th-allowing two weeks for processing time before EOFY.
With June 30th fast approaching, contact Stones Sharp today for help getting organised for your tax return, or to begin making a long-term tax planning strategy to set you up for success year after year.
