Seven Smart Tax-Time Tips for 2025: What You Need to Know Before June 30

2025-06-03

As the end of financial year (EOFY) fast approaches, the Australian Taxation Office (ATO) is sharpening its focus on tax return accuracy, asset deductions, and income declarations for 2024–25. Whether you're a business owner, sole trader, or employee claiming vehicle use or working-from-home expenses, these seven key tax-time tips for 2025 can help you stay compliant — and potentially save money.

Here’s how to get ahead of your EOFY obligations and avoid ATO scrutiny.

1. Check Eligibility for the Instant Asset Write-Off

If your business has turnover under $10 million, you may be eligible to immediately deduct new business assets up to $20,000 under the extended instant asset write-off scheme for FY24/FY25.

📅 Assets purchased on or after July 1, 2024, and valued over $20,000 must be depreciated over several years (15% in year one, 30% thereafter).

This is especially relevant for small businesses investing in tools, technology, or vehicles before EOFY.

2. Keep Meticulous Records

The ATO has flagged work-related expense claims as a major audit target this year.

✅ Keep digital copies of all receipts, logs, invoices, and travel records. ✅ If you claim business vehicle use, maintain a valid logbook and track both business and private kilometres.

Going digital with accounting software can streamline your tax reporting and boost financial oversight year-round.

3. Declare All Income — Including Cash and Barter

One of the most common and costly tax mistakes? Not declaring all income.

Whether it's cash in hand, payments-in-kind, or income from side gigs, everything must be reported. ATO data-matching systems now detect discrepancies between reported income and what employers, platforms, or banks have logged.

“The ATO checks everything — even payments from contractor systems and bank records,” warns CPA Australia’s Elinor Kasapidis.

4. Don’t Ignore Outstanding Tax Debts

If you owe the ATO money, it’s critical to take action now. The ATO continues to ramp up debt recovery, and ignoring notices can lead to penalties — or worse.

💬 Stay on top of cash flow and super payments, and contact the ATO to set up a payment plan.

5. Get Trust Affairs in Order Before June 30

If you operate a trust, you must finalise and document distribution resolutions by June 30.

❗ Failure to do so means the trustee may be taxed on the full trust income.

Given the ATO's intense scrutiny on trusts, staying compliant is essential for high-net-worth individuals and small business owners.

6. Keep Private and Business Use Separate

Be clear about how your assets are used — especially cars, boats, or equipment. Claiming full deductions for something used part-time for private reasons is a red flag for the ATO.

For example:

If your ute is used for both work and family trips, claim only the business-use portion.
If you use a company vehicle on weekends, FBT (Fringe Benefits Tax) likely applies.

The ATO will cross-check your lifestyle, loans, and income with what you’ve declared.

7. Seek Professional Help

Tax law is complex — and errors can be expensive. If you’re unsure about what to claim or declare, consult a registered tax agent or accountant.

✍️ They’ll help you maximise your deductions and ensure you’re fully compliant with ATO rules.

If you realise you’ve made a mistake after lodging, correct it early — voluntary disclosures can reduce penalties.

📌 EOFY 2025 Checklist Summary:

✅ Instant asset write-off: Up to $20,000 for eligible small businesses
✅ Keep detailed records: Receipts, logs, and digital files
✅ Declare all income: Cash, barter, contract, or side gig earnings
✅ Manage tax debts: Don’t delay — contact the ATO
✅ Finalise trust resolutions: By June 30
✅ Separate private and business use: Especially for vehicles and assets
✅ Get help when needed: Don’t go it alone — tax agents are invaluable

Disclaimer: This blog is for general information only and does not constitute financial advice. Please consult a licensed tax agent or accountant for advice tailored to your personal or business circumstances.

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Credit: CarSales.com.au