As a business owner, it’s important you consider these several obligations before and after 30 June.
Some can help minimise your tax, while others reduce your ATO audit risk.
Here’s your action overview:
- A brief summary of key dates and actions over the next 2 months
- The key changes you need to be aware of
- Your 2025 End of Financial Year Reminders and Action Items
Key Changes for 2025
Increased Funding for Compliance
The Federal Government has allocated $999 million over 4 years to expand the ATO’s compliance programs. This initiative is expected to return $3.2 billion in additional tax revenue.
As a result, it is anticipated that virtually all businesses will be subject to an ATO review or audit in the coming years, driven by enhanced data matching and benchmarking of financial results.
ACTION STEP: We can review your records and record-keeping procedures to help ensure you’re well-prepared in the event of an audit. Please contact our office if you’d like to request this service.
Super Guarantee Now 12%
From 1 July 2025, the SG rate increases to 12%.
• For “total remuneration” packages, take-home pay may reduce unless adjusted.
• For “plus super” arrangements, the increase is added to super contributions.
Action: Update payroll and cash flow forecasts accordingly.
General interest charge (GIC) – deductibility change from 1 July 2025
From 1 July 2025, taxpayers will no longer be able to claim an income tax deduction for ATO interest charges, including the General Interest Charge (GIC) and Shortfall Interest Charge (SIC).
This applies to all GIC and SIC incurred on or after that date, regardless of whether the underlying tax liability relates to a prior income year.
ACTION STEP: If you anticipate any ATO interest charges, consider resolving outstanding liabilities before 30 June 2025 to preserve deductibility.
Cryptocurrency & NFTs
Crypto gains are not tax-free. CGT applies to disposals, swaps, and conversions. Gains from cryptocurrency are similar to gains from other investments, such as shares. Generally, as an investor, if you buy, sell, swap for dollar currency, or exchange one cryptocurrency for another, it will be subject to capital gains tax (CGT) and must be reported. CGT also applies to the disposal of non-fungible tokens (NFTs).
Action: Keep detailed records. The ATO is actively data-matching.
Asset Write-Offs $20,000
The Temporary Full Expensing scheme has been extended to 30 June 2025.
Assets under $20,000 may still be eligible for instant write-off (subject to legislation).
Assets over $20,000 must be depreciated.
Reminder: Selling fully expensed assets may trigger taxable income.
EOFY Reminders & Action Items
ATO PAYMENT DEFERRALS
We can liaise with the ATO and negotiate a deferral or repayment plan if you are having trouble paying any ATO liabilities. Please contact us immediately if you would like our assistance with this.
SINGLE TOUCH PAYROLL
If you are reporting employee payments to the ATO using Single Touch Payroll (STP), most businesses will need to lodge a STP Finalisation Declaration with the ATO by 14 July 2025.
Employees will be able to access their Income Statement through their MyGov account.
REPORTABLE FRINGE BENEFITS
Where you have provided fringe benefits to your employees more than $2,000, you need to report the FBT grossed-up amount. This is referred to as a `Reportable Fringe Benefit Amount’ (RFBA) amount, and it needs to be updated for each employee as part of your Single Touch Payroll finalisation procedure for 2025.
STOCKTAKE
Businesses that buy and sell stock generally need to do a stocktake at the end of each financial year as the increase or decrease in the value of stock is included when calculating the taxable income of your business.
If your business has an aggregated turnover below $10 million, you can use the simplified trading stock rules. Under these rules, you can choose not to conduct a stocktake for tax purposes if the difference in value between the opening value of your trading stock and a reasonable estimate of the closing value of trading stock at the end of the income year is less than $5,000. You will need to record how you calculated the value of trading stock on hand.
If you do need to complete a stocktake, you can choose one of three methods to value trading stock:
- Cost price – all costs connected with the stock including freight, customs duty, and if manufacturing, labour and materials, plus a portion of fixed and variable factory overheads.
- Market selling value – the current value of the stock you sell in the normal course of business (but not at a reduced value when you are forced to sell it).
- Replacement value – the price of a substantially similar replacement item in a normal market on the last day of the income year.
A different basis can be chosen for each class of stock or for individual items within a particular class of stock. This provides an opportunity to minimise the trading stock adjustment at year-end. There is no need to use the same method every year; you can choose the most tax effective option each year. The most obvious example is where the stock can be valued below its purchase price because of market conditions or damage that has occurred to the stock. This should give rise to a deduction even though the loss has not yet been incurred.
TRUST DISTRIBUTION RESOLUTIONS
Trustees (or directors of a trustee company) need to consider and decide on the distributions they plan to make by 30 June 2025 at the latest. Decisions made by the trustees should be documented in writing (preferably) by 30 June 2025.
If valid resolutions are not in place by 30 June 2025, the risk is that the taxable income of the trust will be assessed in the hands of a default beneficiary (if the trust deed provides for this) or the trustee (in which case the highest marginal rate of tax would normally apply).
ACTION STEP: If you haven’t already signed your Trust Distribution Resolution for each Trust you have, please contact our office before 30 June 2025 so that we can properly prepare this document for you to sign.
DIV7A LOAN AGREEMENT MINIMUM REPAYMENTS
When a company makes a loan to a shareholder or an associate of a shareholder, a Loan Agreement needs to be entered into and minimum annual repayments for the loan need to be made before 30 June each year. If these steps aren’t taken, then the loan amounts are treated as a deemed unfranked divided and are taxable at the taxpayer’s marginal tax rate – which could be as high as 47%.
ACTION STEP: Ensure that you have made all minimum repayments for any Div7A Loans that you have before 30 June 2025. Please contact us immediately if you are unsure of this, as you may need to declare a dividend from the company before 30 June 2025 to assist with your minimum annual loan repayment.
REPORTING PAYMENTS TO CONTRACTORS
A “Taxable Payments Annual Report” (TPAR) is due for lodgement with the ATO by 28 August 2025 for the following industries:
- Building and construction services
- Cleaning services
- Courier services
- Road freight services
- Information technology (IT) services – including software development
- Security, investigation or surveillance services
- Mixed services (providing one or more of the services listed above)
This report includes a listing and total of all payments and non-cash benefits made to contractors during the year.
PAYROLL TAX
Payroll tax applies to all entities that have an Australian payroll that exceeds state-based limits.
You should note that in addition to normal salaries and wages, the following items are generally also included in payroll expenses if payroll tax applies:
- fringe benefits based on the grossed-up taxable value of fringe benefits;
- all employer contributions to superannuation on behalf of employees; and
- some contractor or sub-contractor fees.
For more detailed information about whether payroll tax applies to your business, please contact our office.
ACTION STEP: The Annual Return/Reconciliation for payroll tax must be lodged by 21 July 2025 (Queensland, Victoria, Northern Territory, Tasmania and WA) or by 28 July 2025 (NSW and South Australia) with your State Revenue Office.
WORKCOVER / WORKSAFE
Your WorkCover/WorkSafe insurer sends an annual reconciliation to all registered employers at the end of the financial year.
In completing your annual reconciliation, you will need to include the following items in addition to normal salaries and wages:
- fringe benefits based on the taxable value of fringe benefits (do not gross-up);
- all employer contributions to superannuation on behalf of employees; and
- some contractor or sub-contractor fees.
For more detailed information about what items to include in the reconciliation statement, please contact our office.
Once the reconciliation is received and processed by your WorkCover/WorkSafe insurer, you will be issued with a final assessment or a refund depending on the instalments you have paid during the year.
ACTION STEP: Complete and lodge the Annual Reconciliation with your WorkCover/WorkSafe insurer by the due date.
GOODS AND SERVICES TAX (GST)
A reconciliation of GST should be performed as at 30 June 2025 to determine if there has been an under or over-payment of GST in the 2025 tax year. If a discrepancy has arisen, then it is possible to adjust a subsequent Business Activity Statement (BAS) to rectify the error, however there are limits imposed on adjustments that can be made in this way.
Income declared on your BAS should be reconciled to income declared on your income tax returns.
Also, please note that you are required by law to substantiate all Input Tax Credit claims with a complying Tax Invoice, and you need to retain these documents for a minimum of 5 years.
ACTION STEP: Complete the annual GST reconciliations, and check that you have all required tax invoices and other supporting documents.
ATO AUDIT ACTIVITY
Please note that the ATO and State Revenue Office are constantly increasing their audit activities. There has been an increase in audit activity for PAYG Withholding, Payroll Tax, WorkCover, GST, Division 7A loan accounts from companies, and Trust Distributions from Discretionary Trusts.
We can offer a review of your records and record-keeping procedures if you are concerned about your ability to satisfy an audit.
ACTION STEP: Please contact our office if you would like to request this service.
Last-Minute Tax Tips for 2025
- Write off bad debts before 30 June 2025
- Write off any obsolete trading stock.
- Review your Asset register and scrap any obsolete plant and equipment.
- Prepay expenses (e.g. marketing, repairs, donations, insurance).
- Ensure employee super contributions are made and received by your employees’ superannuation fund/s by 30 June.
- Realise any potential capital losses to offset any gains you may have made.
- Document director fees or bonuses with an authorized resolution before 30 June, even if paid within a reasonable time after 30 June.
- Raise and document inter-entity management fees with a signed Management Fees Agreement/Services Agreement to support the transaction and to ensure they are commercially reasonable.
Do You Need Any Assistance from Us?
Feel free to contact our office anytime by phone or email – We’re here to help you!
