EOFY Tax Planning Tips: Maximise Deductions

As the end of the financial year (EOFY) approaches, it's a prime opportunity to get your business finances in order and reduce your tax bill. Whether you're a sole trader or run a growing small or medium business, smart planning in the final weeks of the financial year can have a big impact.

Start With Strong Records

Good tax planning begins with clean, accurate records. Reconcile your accounts, lodge any outstanding business activity statements and ensure employee superannuation is paid before June 30 to claim it in the current financial year.

While large corporations continue to make headlines for paying little to no tax — with more than 800 companies paying no tax in 2022–23 — small and medium-sized enterprises (SMEs) don't have the same leeway. For SMEs, tax compliance is essential, and accurate record-keeping plays a critical role in claiming all legitimate deductions and avoiding penalties.

Keeping detailed, up-to-date records ensures you don't miss out on common deductions such as vehicle expenses, equipment depreciation or operating costs. This also helps you avoid unnecessary stress come tax time.

Quick Tax-Saving Opportunities

To reduce taxable income, consider prepaying expenses such as rent, insurance or subscriptions up to 12 months in advance — especially if your cash flow allows it.

If you're planning to buy equipment, be sure to do so before EOFY. Under the temporary full expensing measure, eligible businesses can claim the full cost of assets — tools, technology or office equipment — if they're installed and ready to use by June 30. This can be a smart way to invest in your business while reducing your tax bill.

Also, be sure to review outstanding debts. Writing off bad debts before EOFY can reduce assessable income and tidy up your balance sheet for the year ahead.

Don't Overlook Superannuation

Ensure employee superannuation is paid on time — not just accrued — so it's deductible in the current year. It's also a good time to review single touch payroll reports and bonus payments to ensure everything is reported correctly.

EOFY doesn't need to be stressful when you're prepared. With a few last-minute checks and the right support, you can take advantage of valuable deductions and set your business up for success in the year ahead.

WMC Accounting helps small and medium businesses make the most of EOFY. Whether you need help finalising deductions or planning ahead for next year, we're here to support you. Contact us today to get your business EOFY-ready.