As the 2025 tax season approaches, Australian businesses are gearing up to finalise their financials and prepare for year-end lodgement. But before you rush to submit your company tax return, it’s worth taking a step back to ensure you’ve maximised deductions, complied with all ATO requirements, and strategically planned for the year ahead.
Smart tax planning is not about last-minute adjustments — it’s about being proactive. Whether you run a small enterprise or a growing corporation, implementing a few well-timed strategies can help you reduce your tax burden and improve cash flow.
Here are the top tax planning tips for businesses in Australia before lodging your company tax return in 2025.
1. Review Your Business Structure
Before preparing your return, it’s important to ensure your business structure still suits your financial goals.
Why It Matters
Different structures — such as sole trader, partnership, trust, or company — have different tax implications.
For instance:
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Companies pay a flat tax rate (currently 25% for base rate entities).
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Trusts distribute income to beneficiaries, which can reduce overall tax liability.
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Sole traders are taxed at individual marginal rates, which might be higher depending on income levels.
If your business has grown or diversified, it might be time to review whether your current structure remains tax-efficient. A tax agent Perth professional can assess if restructuring could save you thousands in company tax Australia obligations over time.
2. Take Advantage of Instant Asset Write-Offs
The Australian government continues to provide support for small and medium-sized businesses through instant asset write-offs and accelerated depreciation measures.
How It Works
Eligible businesses can claim an immediate deduction for assets first used or installed before June 30, 2025, rather than depreciating them over several years.
This includes:
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Office equipment (computers, furniture, phones)
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Tools and machinery
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Vehicles used for business purposes
Before lodging your company tax return, review all recent asset purchases to ensure you’re claiming the full deduction available.
3. Review Bad Debts and Write Them Off
If your business has unpaid invoices that are unlikely to be recovered, you can write them off as bad debts — but only if you do so before the end of the financial year.
Checklist:
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The debt must have been previously included as assessable income.
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You must have evidence that the debt is uncollectible.
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The write-off must occur before June 30 for it to be deductible.
Recording bad debts properly not only improves the accuracy of your books but also reduces your company tax Australia liability.
4. Pay Superannuation Contributions Early
Employers are required to make superannuation guarantee (SG) contributions for their employees — currently 11.5% as of July 2024.
Tax Planning Tip:
If you pay your superannuation contributions before 30 June, you can claim a tax deduction in the same financial year.
Delaying payments means you’ll miss out on this deduction until the following year. Make sure payments are cleared by your super fund, not just processed in your accounting system.
5. Prepay Eligible Business Expenses
Prepaying certain expenses before the end of the financial year can bring forward tax deductions and reduce your taxable income.
🔍 Common Prepaid Expenses Include:
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Rent or lease payments
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Business insurance premiums
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Subscriptions and memberships
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Software and IT services
Small businesses (turnover under $50 million) can claim these prepaid expenses if the service period is 12 months or less.
By prepaying, you effectively “pull” deductions into the current year — a key move before lodging your company tax return.
6. Review Stock and Inventory Valuation
Stock valuation has a direct impact on taxable income.
Tax Tip:
If your stock has decreased in value or become obsolete, consider writing it down or off completely.
Doing this before year-end can:
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Accurately reflect your true profit
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Reduce your assessable income
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Improve your tax outcome
Make sure your stocktake records are accurate and match your accounting system for ATO compliance.
7. Claim All Eligible Deductions
Many business owners miss out on legitimate deductions simply because they don’t track expenses properly.
Common Business Deductions Include:
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Business travel and vehicle expenses
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Office rent and utilities
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Advertising and marketing costs
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Accounting and legal fees
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Repairs and maintenance
Keep detailed records and receipts for each claim. A tax agent in Perth can help identify additional deductions you might not be aware of — especially those specific to your industry.
8. Utilise Loss Carry-Back or Carry-Forward Provisions
If your company incurred losses in recent years, the loss carry-back and carry-forward rules can help offset future tax obligations.
Here’s How It Works:
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Carry-back: You can apply current-year losses to previous years’ profits and claim a refund of tax paid.
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Carry-forward: You can use accumulated losses to offset future profits.
These provisions are a valuable cash flow management tool when handled correctly. A tax agent Perth can calculate the best approach based on your business’s financial performance.
9. Keep Digital Records in Order
The ATO has increased its focus on digital recordkeeping. Companies are now expected to maintain electronic copies of receipts, invoices, and financial statements.
Best Practices:
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Use accounting software like Xero, QuickBooks, or MYOB.
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Reconcile bank accounts and payroll regularly.
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Store records securely for at least five years.
Accurate records not only support your claims but also make ATO reviews and audits less stressful.
10. Review Director Loans and Dividends
If your company directors have taken loans from the business, ensure these comply with Division 7A of the Income Tax Assessment Act.
Why It Matters:
Failure to document these loans correctly can lead to them being treated as unfranked dividends — and taxed accordingly.
Work with your tax agent Perth to:
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Formalise written loan agreements.
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Set repayment schedules.
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Calculate interest rates in line with ATO benchmarks.
Proper management of these accounts ensures your company tax return is accurate and compliant.
11. Plan for Fringe Benefits Tax (FBT)
If your business provides benefits like company cars, entertainment, or loans to employees, you may be liable for Fringe Benefits Tax (FBT).
Tax Tip:
Review fringe benefits provided throughout the year and ensure all declarations are completed before the FBT return lodgement date. This prevents surprises during your company tax return filing.
12. Consult a Professional Tax Agent in Perth
While it’s possible to prepare your company tax return independently, the Australian tax landscape is complex and constantly changing. A qualified tax agent Perth professional can help ensure accuracy, compliance, and maximum savings.
Benefits of Hiring a Tax Expert:
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Stay updated with the latest ATO changes and rates.
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Identify hidden deductions and credits.
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Avoid penalties for errors or late lodgement.
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Save time and focus on running your business.
13. Plan Ahead for the Next Financial Year
Tax planning shouldn’t stop once your return is lodged. After submitting your company tax return, take time to review performance and implement strategies for the coming year:
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Adjust budgets for tax payments.
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Schedule quarterly reviews with your accountant.
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Plan investments and asset purchases in advance.
Consistent planning ensures smoother tax seasons and better business growth.
Conclusion
Lodging your company tax return in 2025 doesn’t have to be stressful. With proactive tax planning, accurate records, and expert guidance, you can reduce liabilities, improve cash flow, and stay fully compliant with company tax Australia laws.
Partnering with a registered tax agent Perth not only ensures your return is correct but also helps you make strategic decisions that strengthen your business’s financial position.
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