5 things to consider doing before 30 June

1. Tax deductions

If you are a small business, incurring some expenses prior to 30 June may increase the amount of your allowable deductions for this financial year (but may reduce what you are entitled to claim next year). 

Some things you could consider reviewing include:

Instant asset write off

For the income year ending 30 June 2025, small business entities (with aggregated turnover of less than $10 million) can immediately deduct the full cost of eligible assets costing less than $20,000. The instant asset write-off can be used for multiple assets, as long as the cost of each individual asset is less than the $20,000 threshold. The measure applies to eligible assets that were first used or installed ready for use between 1 July 2024 and 30 June 2025.

This means if your business meets the eligibility tests, you may be able to claim asset purchases in your tax return. Not every purchase or expenditure may qualify, and the requirements can be complex, so you’ll need to seek your own independent taxation advice before buying the asset. More information is available on the ATO website.

Prepay your business costs

Running your own business can be expensive, but you may be able to claim some running expenses as tax deductions – including ones you pay for ahead of time. 

Prepaying some expenses before 30 June can increase your allowable deductions for the financial year in which they are paid. Eligible expenses include those that have a service period of 12 months or less, for example, annual policies, utility bills or professional subscriptions. Keep in mind that if you claim them this year, you may not be able to claim them next year.

For more information, visit the ATO website.

2. Get your paperwork in order

Good record keeping makes good business sense no matter what time of year. It helps you keep track of how your business is going, makes it easier to comply with tax record keeping requirements, and enables you to source documents if you need to apply for finance.

Some examples of records you should consider keeping in order are:

• Receipts for sales and purchases
• Documents about goods and services tax (GST)
• Records related to tax returns, activity statements and employee superannuation guarantee contributions.

3. Write off bad debts

You may be entitled to a deduction if you are no longer able to recover amounts your customers owe you. For this reason, you may want to review your receivables prior to 30 June and determine which accounts you have previously included in your assessable (or tax) income that have now gone “bad”. The rules for claiming a deduction for a bad debt are complicated and you should consult with your tax adviser to ensure that you satisfy all the necessary criteria before determining that a debt is “bad”.

For more information, visit the ATO website.

4. Pay your employees’ super the right way

It’s important to pay your employees’ super on time and in a way that's SuperStream compliant. 

You may also want to consider paying the Superannuation Guarantee amount on wages earned to an employee’s superannuation fund in late June rather than waiting until July, as the super contributions are generally only deductible when they are paid.

5. Don’t miss tax deadlines

It can be easy to miss the due dates for lodging your tax return, pay as you go (PAYG) and business activity statements (BAS). Marking these dates in your calendar can save you stress around tax time. There may also be penalties if you lodge after the due date.

For the most up-to-date taxation information, you can find more information on the ATO website or speak to an accountant or tax adviser.