Introduction
As the end of the financial year approaches, many Australians begin searching for ways to reduce their tax liabilities and maximise their returns. Whether you are a small business owner, a sole trader, or an employee, smart tax planning can significantly affect how much money you save. Understanding your deductions, keeping accurate financial records, and staying compliant with the Australian Taxation Office (ATO) regulations can all contribute to a healthier financial position.
At Milan Accountants, we work with individuals and businesses across Brisbane to ensure their tax strategy is optimised throughout the year, not just at tax time. Here are some essential tax tips to help you make the most of this financial year.
1. Keep Accurate and Organised Records
One of the simplest yet most powerful ways to save money on taxes is by maintaining accurate bookkeeping throughout the year. Disorganised records can cause you to miss out on valuable deductions or make costly errors in your tax return.
Record every business transaction, invoice, and expense as it happens. Use cloud-based accounting software like Xero, MYOB, or QuickBooks to keep everything in one place. This not only makes tax time easier but also ensures compliance with the ATO’s record-keeping requirements.
At Milan Accountants, we recommend reconciling your accounts monthly so you always have a clear picture of your cash flow and deductible expenses.
2. Understand and Maximise Your Deductions
Claiming all eligible deductions is key to reducing your taxable income. For businesses, deductible expenses may include:
- Office rent and utilities
- Equipment and software costs
- Motor vehicle expenses
- Business travel and client meetings
- Professional fees, including accounting services
For individuals, deductions might include work-related expenses such as uniforms, training courses, tools, and home office costs.
Keep receipts for all deductible expenses, and ensure they are directly related to earning your income.
Many taxpayers also overlook smaller deductions such as subscriptions, donations, and depreciation on assets, which can collectively make a big difference to your return.
3. Take Advantage of Instant Asset Write-Offs
If you operate a business, the instant asset write-off scheme remains one of the most valuable tax-saving tools available. It allows you to immediately deduct the cost of eligible business assets rather than depreciating them over several years.
The eligibility thresholds and limits for this deduction vary each financial year, so always check the latest ATO guidelines or consult your accountant to confirm the current rules.
Investing in new tools, vehicles, or office equipment before the end of the financial year can help you reduce your taxable income while improving your business operations.
4. Plan for Superannuation Contributions
Contributing to your superannuation fund is a smart way to save for retirement while also reducing your tax bill.
If you are self-employed or run a small business, personal contributions to your super (up to the concessional cap) are generally tax-deductible. Even for employees, making extra contributions can be tax-effective.
For the 2024–2025 financial year, the concessional contributions cap is $27,500. Contributions above this limit may be taxed at a higher rate, so it’s essential to stay within the threshold.
Milan Accountants can help you determine the ideal contribution amount to balance your cash flow with long-term savings goals.
5. Review Your Business Structure
Your business structure—whether sole trader, partnership, company, or trust—has a direct impact on how much tax you pay.
For example, companies in Australia pay a flat tax rate of 25% (for base rate entities), which may be lower than the personal tax rate of a sole trader. However, each structure has different legal and administrative implications.
If your business has grown or your income streams have changed, it may be time to reassess your structure. Milan Accountants can evaluate whether restructuring could provide tax efficiency, asset protection, and scalability for your business.
6. Make the Most of Small Business Tax Concessions
The ATO offers a range of small business tax concessions designed to ease compliance and support growth. Some key concessions include:
- Simplified depreciation rules for small assets
- GST reporting simplifications (cash accounting method)
- Pay As You Go (PAYG) instalment concessions
- Capital gains tax (CGT) concessions when selling a business
Taking full advantage of these concessions requires a sound understanding of your eligibility and careful timing of financial decisions. A professional accountant can help you identify which concessions apply to your business and ensure you meet all compliance requirements.
7. Don’t Overlook Prepaid Expenses
Prepaying some of your next year’s expenses before 30 June can reduce your taxable income for the current financial year.
This may include expenses such as:
- Rent or lease payments
- Insurance premiums
- Business subscriptions
- Professional membership fees
Prepaid expenses that cover a period of 12 months or less are generally deductible in the year they are paid, provided your business meets the ATO’s small business entity criteria. This strategy can help you bring forward deductions and improve cash flow management.
8. Review Your Debts and Write Off Bad Debts
Before closing the books for the financial year, review your accounts receivable to identify any bad debts that are unlikely to be recovered.
Writing off bad debts before 30 June allows you to claim a tax deduction for the amount, provided the income was previously included in your taxable earnings.
This not only cleans up your financial records but also ensures you are not paying tax on income you will never receive.
9. Consider Engaging a Professional Accountant
While online tax software can be useful, it often fails to capture the complexity of your financial situation. An experienced accountant in Brisbane can help you uncover deductions you might otherwise miss, avoid costly compliance errors, and plan strategically for the future.
Professional accountants also stay updated with constant changes in ATO laws and tax policies, ensuring your business remains compliant and efficient. At Milan Accountants, we offer personalised tax planning services for individuals and small businesses to help you achieve the best possible financial outcome.
10. Plan for the Next Financial Year
Tax planning should never be a last-minute rush. The most successful businesses approach it as an ongoing process, reviewing finances quarterly and adjusting strategies as needed.
Set up a tax calendar with key ATO deadlines and schedule regular meetings with your accountant to discuss updates, forecasts, and changes in legislation.
With proactive planning and strategic advice from Milan Accountants, you can not only reduce your tax burden but also strengthen your overall financial position for long-term success.
Conclusion
Saving money at tax time is not just about claiming deductions — it’s about understanding the bigger financial picture and planning. By keeping accurate records, leveraging available concessions, reviewing your business structure, and seeking professional guidance, you can significantly improve your tax efficiency.
At Milan Accountants, we help Brisbane businesses and individuals make informed tax decisions that align with their financial goals. If you’re looking to save more this financial year and set up a strong foundation for the next, contact our team today for expert advice and tailored solutions.
