Tax Time 2025: Expert Tips for Small Business Owners and Individuals
Tax time 2025 is fast approaching, and for small business owners and individuals across Australia, it’s the perfect time to get organised, maximise deductions, and avoid last-minute stress. As the 2024–25 financial year draws to a close, it’s essential for small business owners and individuals to prepare for tax time. At Tradewise Solutions, our team of experienced Chartered Accountants and tax advisors is here to guide you through the process with confidence.
1. Understand the Three Golden Rules for Claiming Deductions
The Australian Taxation Office (ATO) emphasises three key rules when claiming business deductions:
-
The expense must be for your business, not for private use.
-
If the expense is for a mix of business and private use, you can only claim the portion used for your business.
-
You must have records to prove the expense.
Maintaining accurate records is crucial. Consider leveraging our Professional Accounting Services to ensure your financial records are precise and compliant.
2. How the ATO Toolkit Can Help at Tax Time 2025
The ATO’s Small Business Tax Time Toolkit is a valuable resource, offering guidance on:
For personalised assistance, explore our Small Business Accounting Services tailored to your unique needs.
3. Claiming Home-Based Business Expenses
If you operate your business from home, you may be eligible to claim certain expenses. For the 2024–25 income year, the fixed rate method allows you to claim 70 cents for every hour you work from home, covering expenses like electricity, internet, and phone.
Alternatively, you can claim the actual expenses incurred, but this requires detailed records. Our Expert Taxation Services can help you determine the most beneficial method and ensure accurate record-keeping.
4. Consider Pay As You Go (PAYG) Instalments
PAYG instalments allow you to make regular prepayments of the tax on your business income, helping to avoid a large tax bill when you lodge your return. If you’re running a new business, consider voluntarily entering into PAYG instalments.
Our Tax Planning and Compliance Services can assist you in setting up and managing PAYG instalments effectively.
5. Take Advantage of the Instant Asset Write-Off
Eligible small businesses can deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025. This deduction applies on a per-asset basis, allowing multiple assets to be claimed, provided each is under the $20,000 threshold.
Our Business Advisory Services can help you plan asset purchases to maximise tax benefits.
6. Stay on Top of Employer Obligations
If you employ staff, ensure you’re prepared for end-of-financial-year tax and super obligations:
-
Fringe Benefits Tax (FBT): The FBT year runs from 1 April to 31 March. Lodge your FBT return and pay any FBT owed by 21 May 2025, or by 25 June 2025 if lodging electronically through a tax professional.
-
Super Guarantee (SG): From 1 July 2025, the SG rate increases to 12% of your employees’ ordinary time earnings. Ensure SG contributions for the April to June quarter are paid by 28 July 2025.
-
Single Touch Payroll (STP) Reporting: Make STP finalisation declarations by 14 July 2025 for all employees paid during the financial year.
Our Payroll and Superannuation Services ensure compliance with all employer obligations.
7. Embrace Digital Tools for Record-Keeping
Effective record-keeping is vital for managing tax and super obligations. The ATO’s Record Keeping Evaluation Tool can help you assess and improve your record-keeping practices.
Additionally, setting up myGovID and Relationship Authorisation Manager (RAM) allows you to access the ATO’s online services, streamlining your business reporting and transactions.
Our Bookkeeping Services can assist you in implementing efficient digital record-keeping systems.
Ready to Get Tax Time Right?
Tax time doesn’t have to be stressful. At Tradewise Solutions, we provide tailored support for individuals and businesses across Australia, ensuring you meet your obligations while maximising your tax position.
📞 Contact us today to schedule a consultation and ensure you’re fully prepared for tax time 2025.
Disclaimer
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Tradewise Solutions before making any decision to discuss your particular requirements or circumstances.