14 Tax Planning Tips for 2025

Start Now, Before the Horse Bolts!

While the 30th of June feels far away, it’ll be here before we know it. In the world of tax planning, that means one thing: the time to act is now. On the 1st of July, it’s too late—the horse has already bolted! So, rein in those tax liabilities and make sure you’re on the front foot with your financial strategy.

Why Now?

In tax planning, the aim is to look forward—otherwise, it’s not planning at all! March is the ideal time to get organised. The key to effective tax planning is timing, so let’s dive into 14 practical tips to keep more of your hard-earned cash in your pocket.

14 Tax Planning Tips to Start Thinking About in March.

1. Pre-Pay Expenses
   If you’ve got the cash flow, pre-paying some of next year’s expenses before 30th June could give you a handy tax deduction this year. This can include things like rent, insurance, or even subscriptions—anything that helps bring forward deductions.
   
   
2. Review Your Invoicing Strategy
   Are you able to postpone some of your invoicing and delay your income until the new financial year? Deferring income, where practical and allowable, can help smooth out your taxable income and manage which tax bracket you might fall into for that financial year.
   
   
3. The Right Business Structure Matters
   Your business structure (sole trader, partnership, company, or trust) can significantly impact your tax obligations. Now’s a good time to review your setup—are you structured correctly or are you missing out on potential tax efficiencies? This is also very important when it comes to asset protection, not just tax.
   
   
4. Consider Negative Gearing on Property
   If you have investment properties or own your own commercial property, negative gearing might reduce your taxable income. However, it’s not a one-size-fits-all solution, so get professional advice to ensure it aligns with your overall financial goals.
   
   
5. Income Protection Insurance
   Income protection premiums are generally tax-deductible, offering both financial security and a potential tax break. It’s a double win—peace of mind and a lighter tax bill! Again, make sure you pay for this before the end of June to receive any tax deductions.
   
   
6. Superannuation Contributions
   Contributing to your superannuation can reduce your taxable income, especially if you’re eligible for a tax deduction. Make sure contributions are made before the end of the financial year to maximise the benefits. This is also another great option to secure your financial future.
   
   
7. Plan Property Sales Wisely
   If you’re thinking of selling a property, timing is everything. Consider whether selling this financial year or next will result in a better tax outcome or if it would be better to postpone the sale until next financial year, particularly when it comes to capital gains.
   
   
8. Clear Out Bad Debts
   Review your accounts receivable—if you’ve got debts that are never going to be paid, write them off before 30th June to potentially claim a deduction.
   
   
9. Upgrade Assets Before 30th June
   Thinking about purchasing office equipment or a new work vehicle? The Instant Asset Write-Off (up to $20,000) could make this a smart move before the end of the financial year.
   
   
10. Make Donations Work for You
    Charitable donations to registered charities not only make a difference but can also reduce your taxable income. Just remember to keep those receipts! While generosity shouldn’t be all about tax deductions, it doesn’t hurt to let the tax office chip in a little, right?
    
    
11. Stocktake to Maximise Deductions
    If your business holds stock, a thorough stocktake can help identify write-offs and reduce taxable income. It’s also an excellent opportunity to clear out any dead stock.
    
    
12. Keep Those Receipts!
    Whether it’s office supplies, work-related expenses, or donations, keeping detailed records is crucial. Without receipts, you could be leaving money on the table.
    
    
13. Update Your Vehicle Logbooks
    If you use a vehicle for work purposes, an accurate logbook is essential for claiming deductions. Don’t guesstimate—log it, claim it, and save. Apps like Go Far and DriversNote are really handy to help you track those kilometres.
    
    
14. Make the Most of Current Tax Incentives
    The 2024/2025 budget introduced some great incentives:
    
    • Instant Asset Write-Off: Up to $20,000, perfect for those asset purchases before 30th June.
    • Energy Bill Relief: If you’re business is eligible, this could help reduce expenses and tax even by a small margin. It’s money that’s still better off in your pocket!

The quick answer isn’t always the best answer when it comes to Tax Planning.

Effective tax planning isn’t about last-minute scrambling. It’s about strategic thinking, starting early, and taking advantage of every opportunity to reduce your tax liability. Seek professional advice to look at your specific circumstances and what is possible for your situation when it comes to tax.  After all, it’s better to be the one closing the gate before the horse bolts than trying to wrangle it back afterwards!

If you need help to maximise your tax planning or creating a rock-solid financial plan for the end of the financial year book a call with our knowledgeable team.

Learn more about our Tax Strategy services and see how we can help.