Reduce your business tax before EOFY with practical strategies to improve cash flow, maximise deductions, and plan ahead with confidence.
As 30 June approaches, many business owners start asking the same question – what can we still do to minimise business tax this year?
With EOFY fast approaching, now is the ideal time to take a step back and consider practical tax planning actions that can reduce your 2024–25 tax liability and improve your cash flow position.
Not every business needs a detailed tax planning report, but most can benefit from taking a proactive approach before year-end. Even a handful of well-timed decisions can make a meaningful difference.
The key is knowing where to focus. Some strategies are simple to implement but often overlooked, while others require a more considered approach depending on your structure and financial position.
Below are the most effective business tax strategies to review before 30 June – each designed to help you minimise tax, improve cash flow, and avoid common EOFY pitfalls with the support of our taxation accounting services.
Why EOFY tax planning matters
EOFY is one of the few times in the year where small changes can have a meaningful financial impact.
Done well, business tax planning can help you:
- improve cash flow
- reduce taxable income
- avoid compliance risks
- make more strategic business decisions
And importantly, it gives you clarity – not just on tax, but on how your business is really performing.
1. Maximise your deductions before 30 June
It sounds simple, but missed deductions are one of the most common issues we see.
Before 30 June, review:
- operating expenses
- subscriptions and software
- professional fees
- marketing and admin costs
Also consider bringing forward necessary repairs and maintenance so they are paid before year-end and deductible in this financial year
Even small oversights can add up over a full financial year.
2. Bring forward expenses to reduce this year’s tax
If cash flow allows, bringing forward deductible expenses can reduce this year’s business tax.
This may include:
- rent and lease payments
- insurance premiums
- subscriptions or service agreements
If you qualify as a small business entity (generally turnover under $10 million), you may be able to prepay up to 12 months of expenses and claim the full deduction this financial year .
3. Use the instant asset write-off while it’s available
For eligible small businesses, assets under $20,000 can be immediately deducted if installed and ready for use before 30 June .
This can include:
- equipment and tools
- office furniture
- technology and devices
With the threshold expected to reduce to $1,000 after 30 June, timing here is critical.
It’s also important to plan ahead – if you later sell assets that were previously fully written off, the full sale proceeds may be treated as taxable income in that year.
4. Use super contributions to reduce taxable income
Super remains one of the most effective business tax planning tools.
Key points to consider:
- concessional contributions are capped at $30,000 for 2026
- contributions must be received by the fund before 30 June to be deductible
- employer super guarantee payments count towards the cap
Late payments are a common trap – processing delays can push contributions into the next financial year.
5. Avoid unexpected tax from director loan accounts
If you’ve drawn funds from your company, it’s critical to review your loan position before year-end.
Without proper management:
- unpaid loans can be treated as unfranked dividends
- unexpected tax liabilities can arise
Ensuring repayments are made or compliant agreements are in place before deadlines is essential .
6. Defer income to manage your tax position
In some cases, you may be able to legally defer income to the next financial year.
This could involve:
- delaying invoicing (where appropriate)
- managing contract timing
- reviewing when income is recognised
You may also be able to defer certain investment income or capital gains by managing the timing of receipts or contract dates.
Even small timing adjustments can shift business tax outcomes when applied correctly.
7. Write off bad debts and outdated stock
Before 30 June:
- review outstanding debtors
- formally write off unrecoverable amounts
- identify obsolete or unsellable stock
These adjustments must be processed before year-end to be deductible.
8. Get your stocktake right before year-end
Accurate year-end reporting is critical for both compliance and tax outcomes.
Make sure you:
- complete a stocktake
- assess work in progress
- apply appropriate valuation methods
This is also an opportunity to identify inefficiencies in your operations.
9. Secure your deduction by paying super on time
To claim a deduction this financial year, employee super must be received by the fund by 30 June .
Leaving this until the last minute can result in:
- missed deductions
- compliance issues
- unnecessary stress
10. Review your structure to optimise your tax outcome
EOFY is the right time to step back and assess whether your current structure is still the most tax-effective.
Depending on how your business is set up, there may be opportunities to reduce business tax through strategic structuring.
For example:
- companies with turnover under $50 million may be eligible for the 25% company tax rate, provided their income is not primarily passive
- businesses operating through a trust may benefit from distributing profits to a bucket company to cap tax at the company rate
If you operate through a trust, it’s also critical that trustee resolutions are prepared and signed before 30 June, as this directly impacts how income is taxed .
These strategies can be highly effective, but they need to be implemented correctly – the right structure can significantly reduce tax, while the wrong approach can create unintended consequences.
It’s not just about minimising business tax
While reducing business tax is important, the real value comes from making smarter financial decisions.
The best EOFY strategies:
- align with your business goals
- support cash flow and growth
- are implemented with enough time to be effective
That’s why we focus on practical, forward-looking advice – not just tax compliance.
How we help
At Lucent Advisory, our tax accountants provide practical, proactive advice to help you minimise tax and make confident financial decisions.
That means:
- strategies based on accurate, up-to-date financial information
- clear, commercially focused tax advice
- support that aligns with your broader business goals
If you’re unsure where to start, or want confidence in your EOFY position, we can help you focus on the strategies that will make the greatest impact. Explore our tax accounting services.
Take control of your tax position before EOFY
The right tax strategy can reduce what you pay, improve cash flow, and give you confidence in your numbers – but timing is critical. Acting before 30 June gives you more options and better outcomes.
If you’re ready to minimise tax and make smarter financial decisions, speak with the Lucent Advisory team today. Contact Us
Sophie McDonald
Senior Manager – Taxation and Advisory
