How to Save tax?

Here are our top 12 strategies that may save you tax this year

1. Discretionary Trust Distributions

• Allocate income to varied beneficiaries

• Ensure resolutions are executed before 30 June.

  
  

2. Franking Credit Planning

• Issue franked dividends to extract retained profits.

• Balance franking account to avoid deficit tax.

• Ensure documentation (director minutes + dividend statements) is in place pre-30 June.

  
  

3. Division 7A Compliance

• Convert unpaid drawings or company loans into compliant Division 7A loans with proper agreements.

• Make minimum yearly repayments to avoid deemed unfranked dividends.

  
  

4. Prepaying Expenses

• Prepay up to 12 months of certain deductible expenses (e.g. rent, subscriptions, interest) to bring forward deductions.

  
  

5. Superannuation Contributions

• Speak to your financial adviser about possibly making a personal superannuation contribution. Remember that your employer contributions are included in the cap limit (currently, in 2025 this is $27,500 p.a) and if you are a high income earner, always consider the consequences of division 293.

• Claim deduction (if eligible) on personal contributions via a Notice of Intent to Claim.

• Timing matters — contributions must be received by the fund before 30 June.

  
  

6. Write Off Bad Debts

• Review debtors and formally write off bad debts in the accounts before year-end to claim a deduction.

  
  

7. Small Business Concessions

• Instant asset write-off

• Immediately deduct the full cost of eligible business assets (Limit is $20,000 for the 2025 year)

• Ensure assets are installed and ready for use by 30 June.

• Simplified depreciation pools

• Prepaid expenses

• CGT concessions (for business owners selling assets)

  
  

8. Defer Income

• Delay invoicing or contract settlements until after 30 June, where commercially appropriate and cash flow allows.

  
  

9. Stock Valuation Adjustments

• Write down obsolete or slow-moving stock to current market value to reduce taxable income.

  
  

10. Spouse or Family Wage Review

• Consider if it is a reasonable option (and can be substantiated) to pay reasonable wages to spouses or family members for actual work done.

  
  

11. Home Office and Motor Vehicle Deductions

• Maximise deductions for business use of home office, phone and internet.

• Keep a diary of when you worked from home and what what work was done as we may need this to claim the work from home allowance.

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12.Motor Vehicle Deductions

• Keep logbooks and evidence.

This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred. This is general advice only.