Updated April 2025

With the end of the financial year fast approaching, now is the perfect time to start thinking about your tax planning strategies. Taking action before 30 June can ensure you’re in the best possible financial position and save you thousands in tax. 

What is tax planning, and why does it matter now? 

Tax planning is a proactive approach to managing your tax obligations effectively. It allows you to maximise your after-tax wealth through legitimate strategies that reduce or defer your tax liability. 

Effective tax planning is more important than ever in today’s economic environment, with rising living costs and increased borrowing expenses. By implementing carefully considered strategic tax planning measures, you’ll have more financial resources to achieve your personal and business goals. 

If you lodge a tax return and receive a tax assessment, tax planning should be on your radar, regardless of your income level or business size. 

For a deeper understanding of strategic tax planning principles and how they might benefit you, read our comprehensive guide, ‘What is tax planning and how does it work in practice?’.  

Key tax planning areas to consider for the 2024-2025 financial year 

Instant asset write-off    

The instant asset write-off threshold for the 2025 financial year is $20,000. With more stringent depreciation rules expected from 1 July 2025 onwards, it may make sense for your business to maximise this concession now. 

Division 7A considerations  

If you operate through a company structure, you must know the rules for extracting profits and cash. Division 7A rules, which now extend to trusts, can have significant adverse tax implications if not managed correctly. 

Before 30 June, it’s essential to: 

  • review and forecast inter-entity and owner loan accounts 
  • determine appropriate dividend strategies 
  • plan the repayment of any loans to mitigate potential tax issues.  

Trust distribution resolutions 

Trustees of discretionary trusts must determine in writing how to treat trust income before 30 June. This requirement is non-negotiable – failure to document distributions properly can trigger an assessment at the trustee level with a 45% tax rate applied to the trust’s entire assessable income. 

At Davidsons, we assist with preparing distribution minutes that comply with the terms of your trust deed while achieving the most effective distribution strategy and tax outcomes for family groups. 

Superannuation contribution strategies 

Superannuation remains one of the most tax-effective wealth-building vehicles available.  

The superannuation concessional contribution cap is $30,000 for the 2024-2025 financial year, and unused contributions can be carried forward if certain conditions are met.    

Super contributions give you a powerful opportunity to: 

  • build wealth within your super fund 
  • reduce your taxable income through deductible contributions 
  • take advantage of the lower 15% tax rate on contributions (compared to marginal tax rates of up to 45%). 

To maximise your contributions, it’s important to transfer any funds at least 7-10 days before 30 June, to ensure your super fund receives them before the 30 June deadline. 

Putting tax planning into practice: What to do now 

The strategies outlined above represent just a few of the key themes we discuss with our clients in the final quarter of each financial year. This period often provides the greatest opportunity for us to deliver significant value and impact to our clients’ financial and taxation affairs. 

It’s important to remember that each client’s circumstances are unique, and every year brings different challenges and opportunities as ATO rules and interpretations evolve. 

The most critical takeaway is this: optimal year-end positions can only be achieved by implementing strategies before 30 June. After 30 June is simply too late to influence your 2024-2025 tax outcome. 

We recommend scheduling a tax planning meeting with your accountant at least 2-3 months before year-end to allow sufficient time to: 

  • analyse your current position 
  • identify appropriate strategies 
  • implement any recommendations.  

Need help getting your 2024-2025 tax planning underway?  

Our experienced team of tax professionals can help you navigate the complexities of tax planning and develop strategies tailored to your specific circumstances. With proactive advice, we can help you maximise your after-tax position while ensuring you remain fully compliant with all tax obligations. 

You can reach out to us by: 

This article was written by Tax and Business Services Director Kylie McEwan and updated by Tax and Business Services Manager Troy Nolan. 

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Disclaimer: The information provided in this article is factual in nature and objectively ascertainable and, therefore, does not constitute financial product advice. Importantly, the factual information that has been supplied does not take into account your personal circumstances, objectives or goals.