As we move closer to 30 June, business owners should start turning their attention to tax. In our experience, the challenge is often that planning happens too late. By the time the conversation starts, there is limited room to make meaningful changes.
EOFY is less about last-minute action and more about reviewing the decisions made across the year. It is an opportunity to step back and ask a simple question: Have we managed our tax position well this year?
Below are the areas we suggest reviewing before year end. If there is anything you’re unsure about reach out to your Twomeys adviser to receive expert guidance.
Key Areas to Review Before 30 June
1. Lodgements and Compliance
Staying up to date with lodgements is important. Not just to avoid penalties, but to ensure your business remains in a strong position with the ATO. Working with a registered tax agent like Twomeys can also provide extended deadlines as well as a more structured approach to managing obligations.
- Confirm all prior year tax returns are lodged
- Ensure all BAS and PAYG instalments are current
- Review ATO correspondence for notices
- Confirm Trust Distribution Minutes are signed
- Verify you are working with a TPB agent
2. Record Keeping
Most missed deductions come back to record keeping. Receipts that have not been captured, expenses that have not been recorded correctly, and so on. Taking the time to review your records can make a real difference.
- Confirm bookkeeping is fully up to date (Xero, MYOB, or equivalent)
- Reconcile all bank accounts and credit cards accurately
- Capture all receipts and supplier invoices
- Review subscriptions and recurring expenses for accuracy
- Confirm payroll and superannuation records are complete and accurate
3. Tax Planning Conversations
Good tax outcomes rarely happen by accident. They come from having the right conversations at the right time. A clear plan supports better decisions around cash flow, investment and overall business direction.
- Identify any missing or unclaimed business expenses
- Consider prepaying deductible expenses for up to 12 months (where appropriate)
- Review motor vehicle expenses and confirm logbooks are up to date
- Ensure superannuation contributions are paid and cleared before 30 June
- Review owner drawings vs wages vs dividends – confirm structuring is correct
4. Depreciation and Asset Planning
Depreciation and small business concessions can reduce taxable income when used correctly.
- Review asset register for accuracy and completeness
- Identify assets eligible for instant asset write-off
- Consider replacing outdated or inefficient equipment before 30 June
- Confirm correct depreciation methods are being applied
5. Capital Gains Tax (CGT)
If you are considering selling an asset or part of your business, it is important to understand the tax position early. In some cases, small business CGT concessions can significantly reduce the tax payable. However, these require planning ahead of time.
- Review any planned sale of business assets or the business itself
- Confirm contract timing. Remember it’s the contract date, not settlement, that drives CGT outcomes
- Assess eligibility for small business CGT concessions
- Consider deferring a sale to the next financial year if beneficial
- Consider Put & Call Option structures for maximum tax efficiency
6. Bad Debts
If a debt is unlikely to be recovered, it needs to be written off before 30 June to be deductible this year. This is a straightforward area, but one that is often missed.
- Review all outstanding debtors
- Identify and formally write off bad debts before 30 June
- Confirm GST treatment on any written-off bad debts
- Assess overall cash flow position and forecast for Q1 of the new year
7. Taking a Measured Approach
Each year, new tax strategies are promoted. Some are complex and may not stand up over time. A steady, well-planned approach tends to deliver better long-term outcomes than chasing short-term benefits.
- Avoid aggressive or ‘too good to be true’ tax schemes
- Ensure appropriate documentation is retained for all deductions claimed
- Review ATO risk areas relevant to your industry
- Confirm your business structure is still appropriate for your current size and goals
The businesses that tend to be in a stronger position are those that review early, act with intention, and seek advice before deadlines approach.
If you would like to talk through your position before 30 June, Team Twomeys is here to help the sooner the better.
