It’s almost tax time again, and if you run a business, you know the drill — it’s either a smooth ride or a chaotic scramble. If you belong to the latter category, fear not; you are not alone. But let’s do things differently this year. FY25 is the year to get ahead of the game, maximise your deductibles and keep more of your hard earned cash where it belongs: in your business.
The key? Spending smart. It’s not only about slashing expenses, but making strategic purchases that benefit your company and lower your taxable income. From insurance to tech upgrades, here’s what you should consider to make the most of your business expenses before EOFY.
Insure Now, Claim Later
Business insurance is more than just a safety net — it’s also a deductible expense. Professional indemnity, public liability and retail business insurance are all examples of insurance that, when locked in before 30 June, will allow you to claim the cost back sooner rather than later.
Outside of the tax benefits, the right coverage helps safeguard your business against inevitable setbacks — because things can and will go wrong (Murphy’s law!). For example, if you own a retail store, retail business insurance can protect you from loss due to theft, property damages or customer claims. It’s a no-brainer: peace of mind now, tax deduction later.
Upgrade Your Tech (While It’s Still Deductible)
Tech moves fast, and so should you. If your business is still running (or rather, limping) along with obsolete computers, slow software or aging equipment, EOFY is the perfect excuse for an upgrade. The instant asset write-off scheme means you can immediately deduct the cost of new purchases rather than depreciating them over several years.
We’re talking laptops, tablets, printers, or even new accounting software — if it helps your business run smoother, it’s a consideration. Just be sure to make your purchase prior to June 30 or you’ll miss the cut-off. And yes, that means actually finalising the purchase, not just adding it to your online cart and forgetting about it.
Prepay Expenses to Soften the Blow
Got bills you know you’ll have to pay in the next several months? Consider paying them now so that you can accelerate the deduction. By prepaying rent, subscriptions or even supplier invoices, you can lower your taxable income in FY25 and give yourself a financial breather later in the year.
This is particularly beneficial for small businesses that fluctuate in income — taking the hit now might mean a smaller tax bill when things pick up again. Just be sure to confirm that prepayment is for an eligible deductible expense, and you’re all set.
Stock Up on Essential Supplies
If you are running low on office supplies, packaging supplies or products you’ll sell over the next few months, it can be a good idea to stock up before EOFY. Routine business expenses like stationery, printing supplies, or even bulk stock orders can all be claimed as deductions.
For retail businesses, this is a great time to analyse what’s moving fast and stock up on high-demand items. It’s also a clever way to offload slow-moving stock and create space for new stock, all while making your tax return work to your advantage.
Don’t Sleep on Super Contributions
Superannuation isn’t just for employees — if you run a business, it is a smart way to build your own super fund. Contributions made before June 30 can be tax-deductible, lowering your taxable income and increasing retirement savings.
For those with staff, making early super payments for employees ensures compliance while also bringing forward deductions. You just want to make sure you’re getting the payments cleared well in advance of that deadline — anything unsettled won’t count toward this financial year’s transactions.
Hire a Pro (It Pays for Itself)
If your tax return is typically a last-minute panic followed by an Internet freak-out Googling “tax deductions I might have missed,” it’s time to enlist reinforcements. A good accountant does far more than shuffle figures — they assist you in maximising your deductions, avoiding expensive pitfalls and keeping the ATO on your side.
Even better? Hiring an accountant is also a tax-deductible expense. So if you’ve been winging it for years, consider this your cue to hire someone who knows what they’re doing. It’ll save you time, stress and likely money that you expect.
Review Your Business Structure
This one’s not quite a spending tip, but a helpful piece of advice, nonetheless. How you’re taxed depends on how your business is structured, and as your business grows what worked a few years ago may not be the best fit anymore. So, take the time to review your business structure before EOFY.
For example, sole traders might benefit from transitioning to a company structure to reduce personal liability and access different tax benefits. If you’re not sure that you’re structured in the most tax-efficient way, a brief conversation with a financial advisor could help you determine if restructuring is appropriate.
Final Thoughts: Spend Smart, Save Big
It doesn’t have to be a mad scramble at the end of the financial year. A little strategic spending now can mean big savings when tax time rolls around. Whether it’s retail business insurance, tech upgrades or simply getting bills paid in advance — making the right move before June 30 will prepare you for not just FY25, but years to come. So take a deep breath, look over your business expenses and line up all the potential tax deductions your enterprise may be eligible to claim. A little pre-planning now can save big bucks not only in this coming EOFY season but for future business tax returns as well.