Ah yes, the sweet scent of EOFY is in the air. While most people are thinking about winter getaways and EOFY sales, small business owners know the truth: it’s tax planning time. But don’t worry—Hills Tax Accountant Derwent Park has your back (and your balance sheet). Here’s our handy guide to getting your financial ducks in a row before June 30 deadline.
🧾 Instant Gratification – $20K Style
The instant asset write-off cap of $20,000 has been extended until 30 June 2025. That means you’ve got another year to snap up eligible goodies—just make sure it’s something your business actually needs (we’re looking at you, diamond-studded coffee machine).
📦 Stocktake: More Than Just Counting Boxes
Get those clipboards ready—stocktake needs to happen on 30 June. You can use cost, replacement or market value. Got under $10 million in turnover? You might be able to skip it if stock levels haven’t budged by more than $5,000. Lucky you.
🚗 Driving Deductions – Logbooks and Limits
Doing a lot of driving for work? You’ll need a 3-month logbook (good for 5 years unless your driving habits go haywire). And remember: the car limit is $69,674. That means no, you can’t claim the GST on that shiny Tesla over the cap. Sorry.
🏡 Home Office: 70c or Bust?
If you’re claiming 70 cents per hour for working from home, you need a 12-month worksheet. Want to claim individual expenses instead? That’s fine—but no double dipping. Ask us for the right form and we’ll sort you out.
🧑💼 Super & Staff: Don’t Leave it Too Late
EOFY is like musical chairs—when the music stops (aka 30 June), you don’t want to be caught standing. One of the most common stumbles? Superannuation. To claim it this year, the money has to arrive in the fund by 27 June 2025—not just be transferred. Miss it and it’s next year’s deduction, like it or not.
While you’re at it, now’s the time to finalise Single Touch Payroll (STP) reports, check that PAYG withholding is up to date, and make sure bonuses or commissions are processed properly. The ATO has laid it all out in a surprisingly helpful EOFY guide for employers — and no, it doesn’t require an accounting degree to read.
👉 See the ATO’s EOFY guide for employers here.
👪 Trusts, Div 7A Loans & the “Pay or Notify” Rule
If you’ve got a discretionary trust, this one’s important:
- Distribute to family members before 30 June
- Division 7A minimum repayments must be made if there are loans
- Want to distribute to a tax-exempt beneficiary? You must notify them in writing by 31 August if you haven’t paid them yet. This is not optional. It’s the law.
Trusts are a bit like teenagers—best handled carefully and with professional advice.
🗂️ Record-Keeping: Your Business’s Secret Weapon
Think of good record-keeping as your business’s superhero cape—it might not be flashy, but it saves the day when tax time rolls around. Keeping accurate and complete records isn’t just a legal requirement; it’s essential for understanding your business’s financial health, managing cash flow, and meeting tax obligations. The ATO outlines five key rules for record-keeping, including keeping records for at least five years and ensuring they’re in English or easily translated. For a comprehensive guide on setting up and managing your business records, check out the ATO’s overview here:
👉 ATO: Overview of record-keeping rules for business
💼 Business Expenses: Spend Smart, Defer Smarter
EOFY is a great time to review your spending and clean up your books. Here’s what you can do:
- Write off bad debts (bye-bye unpaid invoices 👋)
- Buy that boring-but-useful stationery and tools now
- Pay bonuses, commissions, or director fees
- Prepay stuff like rent, insurance or marketing (up to 12 months in advance)
- Defer income till July if it makes sense
Need help sorting the smart from the silly? Give us a call.
💸 Super Deadline: 27 June is NOT Flexible
If you want to claim super contributions for this financial year, they must hit the fund by 27 June. Not postmarked, not “processed soon”—received. That’s up to $30,000 per taxpayer including salary sacrifice, so don’t miss the boat.
🧾 Receipts and the Great Paper Chase
Good recordkeeping isn’t just a nice idea—it’s essential. Keep:
- Invoices for capital items separate from daily expenses
- Depreciable item records for 5 years after they’ve been fully depreciated
- Documents for land and buildings for 5 years after they’re sold (hello CGT!)
If in doubt, don’t chuck it out.
🔧 WIP, Debtors and Creditors (Oh My!)
End of year also means tallying up:
- Work in progress (jobs started but not finished or invoiced)
- Trade debtors (people who owe you money)
- Trade creditors (people you owe money to)
And remember—write off any doubtful or bad debts before 30 June or they’ll haunt your ledger forever.
🏡 Selling Stuff? Tell Us First
The ATO has eyes everywhere. If you’ve sold property, shares, crypto or collectables, we need to know. Even if you lost money. (Especially if you lost money.) The ATO can cross-check records with council databases and even auction websites. There’s no point hiding under a spreadsheet.
💬 Final Word
Tax time doesn’t have to be terrifying. With good records, a bit of planning, and the Hills Accounting team in your corner, you’ll get through it just fine. We’ve helped heaps of Tasmanian businesses take control of their tax planning—now it’s your turn.
So grab your receipts, polish off that stocktake, and give us a buzz.
Let Hills Tax Accountants Moonah help you make EOFY 2025 your smoothest one yet.
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03 6273 7800, or email admin@hillsaccounting.com.au.