Chartered accountant GAIL FREEMAN shares a few handy hints to help with year-end tax planning.

This is the time of year when we sit down with our clients and review how they are travelling so that we can do any last-minute tax planning.

This week I’m going to share a few handy hints that may assist with your year-end tax planning.

The Australian Taxation Office (ATO) has indicated its areas of interest for the 2025 financial year: among them registration, lodgment and payment. So the ATO will be following up whether you have lodged and/or paid your tax liabilities.

Make sure that your lodgments and payments are up-to-date. If not, take action, it’s always better if you initiate discussions with the ATO than if they contact you.

They are also following up on company loans, known as division 7A, and making sure that relevant payments have been made in the current financial year.

Capital gains tax is always an ATO area of interest and they are getting a lot more information on crypto investments so make sure to include all crypto statements when you see your accountant.

Property and construction are also important. Earlier in the year the ATO published a report stating that of the rental returns they had checked, 90 per cent were incorrect. So it’s wise to make sure rental income and deductions have been reported correctly.

So, what can you do to minimise tax this year? 

• As an individual you may be able to defer income until the next financial year. If you are buying or selling a property it may be expedient to defer signing the contract until after June 30 because certain CGT events are triggered on contract date rather than settlement date. It also means you have longer before you pay any resulting tax. I know this is a bit confusing because it is not always apparent that CGT runs from the contract date rather than the settlement date.
• You could consider bringing forward some deductions by receiving invoices before June 30. You may be able to prepay some expenses, but I recommend that you get advice before doing this. However, I can confirm that the instant asset write-off has been set at $20,000 for this financial year, so you could purchase that piece of equipment you need which costs less than $20,000. If it costs more than $20,000, you do not get a deduction for the first $20,000 and depreciate the balance.
• You could make some donations to a deductible gift recipient (DGR). You can check whether the charity you are considering is registered as a DGR on ABN Lookup. It’s important that you don’t get raffle tickets or some other material benefit from the DGR as that precludes a deduction. 
• Making a personal superannuation contribution is always a good tax deduction. Some funds stop taking contributions for the 2025 financial year in mid-June so if you are wanting to make a tax-deductible contribution, I recommend you make it in early June just in case.
• The maximum amount for which you can receive a tax deduction this financial year is $30,000, which includes any contributions your employer may make. You must provide a notice of intent to claim a tax deduction form to your superannuation fund and you must receive an acknowledgement from the fund. If you have carry forward concessional contributions then you could also make those before June 30.
• If you’ve been working from home, you’ll be pleased to hear that the working-from-home rate increased to $0.70 an hour from July 1 2024, so make sure you have the correct records to substantiate a claim.

If you want further information about what you might be able to claim to minimise your tax for  the 2025 financial year contact the expert team Gail Freeman & Co Pty Ltd on 02 6295 2844.

Disclaimer
This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser. Authorised Representative of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.