As the financial year draws to close, small business owners, need to start planning their finances for the upcoming year. Let’s face it, running a business is bloody hard right now. Economic pressure such as inflation, cost-of-living increases, and rising employment costs continues to challenge Australian small businesses, so tax planning is more critical than ever. TaxDigital’s comprehensive tax planning packages help small business owners achieve financial stability and tax minimisation and set them up for another successful year.
Small Business Tax Planning 2025
A tax plan primarily ensures that small business owners don’t end up giving the ATO any more of their hard-earned dollars than they should. Some of the key items to consider for 2025 are
- Trust Minutes Don’t forget them, these small bits of paper have a considerable tax impact. Failing to accurately prepare trust minutes will result in a tax of up to 47.5%
- $20,000 Instant Asset Write-Off Small businesses can immediately deduct new assets with a cost of up to $20,000. This reverts to $1,000 from 1 July 2025, so use it while you can!
- Maximise Superannuation Contributions The new concessional contribution cap for 2025 is $30,000, up from $27,500 last year. Don’t forget you can also make use of the concessional bring forward rules.
- Prepay Expenses Maximise deductions this financial year by prepaying interest, rent, and other valid expenses in advance
- Write Off Bad Debts Write off any unrecoverable bad debts before year-end
- Capital Gains Planning By ensuring you time your asset sales correctly, you can access CGT discounts or small business concessions
- Director Loans, Dividends and Salaries Ensure loans are appropriately documented, and salary/dividends are structured for maximum tax efficiency
Small Business Plan
Your Business Plan should ensure that your current operating entity structure is still optimal and that business debts are arranged to maximise tax-deductible interest.
- Entity Review Are you trading in the correct entity? (Company, trust, partnership or sole trader).
- Debt Structuring Arrange borrowings correctly to claim interest deductions.
Check out our article on Redraws vs Offset Accounts for Loans! - Growth Strategy Map out clear profit and pricing strategies for the next 12 months.
Financial Health Check
A quick reminder to small business owners that maintaining up-to-date financial information is vital. A quick health check helps you
- Interpret your numbers. Ensure your Xero file is accurate and the numbers mean something to you.
- Identify Trends Help spot the gaps in your income and expenses ahead of the curve.
- Maintain Profitability Tracking profit margins helps adjust pricing and costs proactively.
Book a Discovery Call
Ready to make 2025 your most profitable year yet? Book a discovery call with TaxDigital on 0407 438 849 or [email protected]. We’ll tailor a plan to your unique needs, help maximise tax incentives, and set you on the path to ongoing success.