Maximising your tax return as a small business in Australia for the 2025 financial year involves strategic planning and staying informed about the latest tax regulations. Here are some EOFY tips to help you:

1. Leverage the Instant Asset Write-Off:

Small businesses can claim immediate deductions for eligible assets, such as equipment or vehicles, costing up to $20,000. Ensure the assets are installed and ready for use by June 30, 2025.

2. Claim Operational Expenses:

There is a lot to consider. Deduct costs like rent, utilities, office supplies, advertising, and professional fees. These can significantly reduce your taxable income.

Examples include

– General Business Expenses:

• Costs like advertising, public relations, and legal fees related to your business operations.
• Bank fees, insurance premiums, and interest on business loans.

– Employee-Related Expenses:

• Wages, superannuation contributions, and workers’ compensation insurance.
• Costs for training or professional development for your employees.

– Business Premises Costs:

• Rent, utilities, and maintenance for your office or workspace.
• Cleaning services and security expenses.

– Office Supplies and Equipment:

• Stationery, software subscriptions, and small-value items like phone accessories.
• Depreciation on larger assets like computers and furniture.

– Travel and Vehicle Expenses:

• Business-related travel, including flights, accommodation, and meals.
• Vehicle expenses, such as fuel, maintenance, and registration, for business use.

– Digital and Online Costs:

• Website hosting, domain registration, and online advertising.
• Internet and phone bills, with deductions for the business portion of usage.

– Other Operating Costs:

• Waste removal, recycling, and parking fees (excluding fines).
• Costs for running a commercial website or e-commerce platform.

Remember, you can only claim the portion of expenses directly related to your business. Keep detailed records, such as receipts and invoices, to substantiate your claims.

3. Depreciation Deductions:

Assets like machinery and computers can be depreciated over time, allowing you to claim deductions annually.

4. Superannuation Contributions:

The superannuation guarantee rate has increased to 11.5% in 2025. Ensure timely payments to avoid penalties and take advantage of tax benefits.

Examples include:

• Concessional Contributions: These are before-tax contributions, such as employer contributions or salary-sacrificed amounts. The concessional contributions cap for 2025 is $27,500. Contributions within this cap are taxed at 15%, which is often lower than your marginal tax rate.
• Non-Concessional Contributions: These are after-tax contributions. The cap for non-concessional contributions is $110,000 per year, or up to $330,000 over three years if you use the bring-forward rule.
• Carry-Forward Contributions: If you didn’t use your full concessional contributions cap in previous years, you might be able to carry forward unused amounts for up to five years, provided your total super balance is under $500,000.

5. Review your business structure:

If your business turnover is under $50 million, you may qualify for the 25% corporate tax rate. Regularly reviewing your structure can help maintain compliance and optimise savings.

6. Stay updated on Tax Credits:

Explore available tax credits that can reduce your liability.

Examples include:

• Energy Efficiency Grants: Grants of up to $25,000 are available to help businesses upgrade equipment and reduce energy consumption.
• Apprenticeship Incentives: A $10,000 incentive is offered for eligible apprentices, along with 100,000 free TAFE places annually starting in 2027, aimed at addressing skills shortages.
• Digital and Cyber Support: Funding is available for digital training and free cyber health checks to help businesses enhance their online presence and security.
• Manufacturing Investments: A $750 million investment under the “Future Made in Australia” plan supports Australian manufacturing, which could benefit small businesses in this sector.

Consulting with a tax professional can ensure you’re making the most of these opportunities while staying compliant with Australian Taxation Office regulations.

The information contained in this article is believed to be reliable as at April 2025 and is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, property, financial and taxation advice before acting on any information in this article.

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