# EOFY 2025: Essential Tax Updates and Checklist for Small Businesses

Approaching the End of Financial Year: Time to Wrap Up!

With the end of financial year (EOFY) rapidly approaching on June 30, 2025, now is the perfect time for small business owners to get organized and maximize their tax position. Whether you're a sole trader, partnership, or company, proper EOFY preparation can save you money and reduce stress when tax time arrives.

Key Tax Deductions Every Small Business Should Claim

Understanding what you can legitimately claim as a business expense is crucial for minimizing your tax liability. Here are the most commonly overlooked deductions:

Office Equipment and Technology Don't forget to claim computers, software subscriptions, office furniture, and equipment repairs. With the instant asset write-off available for eligible businesses, you may be able to claim the full cost of equipment purchased before June 30, 2025.

Professional Development and Training Any courses, workshops, conferences, or training that helps you improve your business skills are fully deductible. This includes online courses, industry certifications, and even books related to your profession.

Home Office Expenses If you work from home, you can claim a portion of your household expenses including electricity, internet, phone bills, and office supplies. Keep detailed records of your home office usage to support your claims, you can look for the ATO requirements here.

Business Travel and Vehicle Expenses Travel costs for business purposes, including flights, accommodation, meals, and vehicle expenses, are deductible. Remember to keep detailed logs of business versus personal use for vehicles.

Marketing and Advertising Costs Website development, social media advertising, business cards, brochures, and any promotional materials are fully deductible business expenses.

Last-Minute Tax Strategies to Consider

There are several legitimate strategies you can implement before June 30 to optimize your tax position:

Accelerate Business Purchases If you've been planning to buy equipment, software, or other business assets, purchasing before June 30 may allow you to claim the full deduction in the current financial year through the instant asset write-off scheme.

Pay Outstanding Bills Settling unpaid business expenses before June 30 ensures you can claim these deductions in the current financial year rather than waiting until next year.

Prepay Some Expenses Consider prepaying certain expenses like insurance premiums, software subscriptions, or rent for the upcoming financial year to maximize your current year deductions.

Review Superannuation Contributions Personal superannuation contributions can provide significant tax benefits. Ensure you've maximized your concessional contribution cap and consider making additional contributions before June 30.

Your EOFY Checklist: Don't Miss These Critical Tasks

To ensure a smooth transition into the new financial year, complete these essential tasks:

Financial Records Management Reconcile all your business bank accounts and credit cards. Ensure every transaction is properly categorized and supported by appropriate documentation according to ATO guidelines. This is also an excellent time to clean up any discrepancies in your bookkeeping.

Documentation Organization Gather all receipts, invoices, bank statements, and financial documents. Consider digitizing physical receipts to prevent loss and make future reference easier. Organize documents by category to streamline the tax preparation process.

Asset Register Updates Review and update your asset register with any new purchases, disposals, or depreciation calculations. This is particularly important if you're claiming instant asset write-offs or calculating depreciation for existing assets.

BAS and IAS Compliance Ensure all Business Activity Statements (BAS) and Instalment Activity Statements (IAS) are up to date. Any outstanding quarterly statements should be lodged promptly to avoid penalties.

Employee Obligations If you have employees, ensure superannuation contributions are up to date, and PAYG withholding has been correctly calculated and remitted.

Important EOFY Dates to Remember

Mark these critical dates in your calendar to avoid costly mistakes:

• June 30, 2025: End of Financial Year deadline

• July 28, 2025: Quarterly BAS due (if applicable)

• October 31, 2025: Individual and business tax return deadline for self-preparers

• May 15, 2026: Extended deadline if using a registered tax agent

• 
  

Getting Professional Help

While many small business owners manage their own bookkeeping throughout the year, EOFY can be complex. Consider engaging a qualified accountant or tax professional if you're unsure about any aspect of your tax obligations. The cost of professional advice often pays for itself through optimized tax strategies and peace of mind.

Professional help is particularly valuable if you've had significant business changes during the year, acquired new assets, changed business structure, or if you're claiming complex deductions.

Start Preparing Now

Don't wait until the last minute to start your EOFY preparations. Beginning your organization process now gives you time to identify missing documentation, implement last-minute tax strategies, and ensure everything is in order well before the June 30 deadline.

Remember, good record-keeping throughout the year makes EOFY much more manageable. Consider implementing systems now that will make next year's EOFY preparation even smoother.

Need personalized advice for your business situation? Contact a us, we can provide guidance specific to your industry and circumstances.