Strategies to Maximise Deductions and Minimise Risk Before 30 June
As the end of the financial year approaches, small business owners have a unique opportunity to strengthen their financial position. Whether your goal is to reduce your tax bill, invest in assets, or tighten up your bookkeeping, there are critical strategies worth considering — and common traps you’ll want to avoid.
Below, we walk through key opportunities, ATO watch areas, and practical examples to help you prepare before 30 June.
1. Deduct Before You Regret: Claim What You’re Entitled To
Instant Asset Write-Off Confirmed at $20,000
The instant asset write-off has been confirmed at $20,000 for the 2024–25 year. Small businesses with turnover under $10 million can immediately deduct eligible assets that are first used or installed by 30 June 2025.
Example: Bought a laptop for $3,200 or a commercial fridge for $9,700? If installed before EOFY, you can claim the full amount in this year’s return.
Important: This threshold is legislated to revert to $1,000 from 1 July 2025. While the government has announced plans to extend it if re-elected, that’s not yet guaranteed.
2. Super Contributions: Reduce Tax While Boosting Your Future
Top Up Before 30 June
If you haven’t reached your concessional contributions cap of $30,000, consider topping up your super before EOFY. Contributions are tax-deductible if lodged correctly.
Example: You’ve had $20,000 contributed through payroll — you could make an additional $10,000 personal contribution and claim the full amount as a deduction.
Catch-Up Contributions
If your total super balance was below $500,000 on 30 June 2024, you may also access unused contribution caps from the past five years — potentially allowing larger one-off deductions.
Spouse Contributions
If your spouse earns under $37,000, a contribution to their super fund may entitle you to a tax offset of up to $540.
3. Clean Up Your Books
Write Off Obsolete Equipment
Still depreciating assets you don’t use? Scrap and write them off before 30 June if they’re no longer active.
Write Off Bad Debts
If a customer clearly isn’t going to pay, and you’ve tried all avenues, you may be able to claim a deduction by writing off the debt in your records before EOFY.
4. ATO Watchlist: Areas Under Scrutiny
Work From Home Expenses
You can use either:
- Fixed Rate Method: 70c/hour (requires a log of actual hours worked from home).
- Actual Cost Method: Requires receipts and a 4-week diary of work patterns.
Estimates and vague logs won’t cut it — the ATO expects clear documentation.
Rental Property Deductions
Common issues the ATO is targeting:
- Properties not genuinely available for rent (e.g. used by family, listed at unrealistic rents).
- Claiming interest on loans that include redraws for private use.
- Repairs vs. capital works — know the difference.
Gig Economy Income
Income from Airbnb, Uber, YouTube, and similar platforms must be declared — even if it’s held in your platform account or received as gifts or credits.
From 1 July 2023, many platforms are required to report your income directly to the ATO.
5. Lodgment Delays Raise Red Flags
Not lodging your tax returns or activity statements won’t make the debt go away. The ATO can issue assessments based on estimates and apply interest or penalties. If you’re behind, get help early to avoid compounding issues.
6. Property Subdivisions: Understand the Tax Before You Dig
Thinking of subdividing land and selling off blocks? The tax treatment may not be what you expect.
If your intent is to make a profit (and you operate in a business-like way), the proceeds are likely to be taxed as ordinary income — meaning no CGT discount and potential GST liabilities.
Example: Subdividing your backyard into two blocks to sell separately is likely to be treated as a profit-making venture.
On the other hand, if you subdivide due to personal hardship or necessity, and don’t develop or market it like a business, you may be eligible for CGT treatment.
7. Benchmark Your Business Before the ATO Does
The ATO has released updated small business benchmarks based on 2022–23 data. These let you compare your turnover and expenses to others in your industry.
Falling outside the normal range may increase the risk of review. The ATO’s Business Viability Tool can also help assess your financial health and sustainability.
Take Action Now
EOFY is a time to make smart moves — not scramble last minute. From deductions to compliance, every step you take before 30 June can make a measurable difference in your financial outcome.
Need tailored support or help navigating your EOFY strategy?
Get in touch today — we’re here to make tax time easier, smarter, and stress-free.
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