Why ATO compliance matters

Staying compliant with the Australian Taxation Office (ATO) is more than just meeting deadlines—it’s about protecting your financial wellbeing and building long-term confidence in your financial operations. For individuals, it ensures you avoid penalties, access available deductions, and stay on track with super and retirement planning. For businesses, timely and accurate reporting helps maintain good standing with regulators, improves cash flow forecasting, and reinforces trust with lenders and partners. As the ATO increases its use of data-matching and real-time analytics, being proactive with your obligations is not just recommended—it’s essential.

Tax time is almost here so here are some tips

As 30 June approaches, now is the optimal moment to finalise your financial-year planning. Here’s our comprehensive rundown of actions to consider for tax minimisation, super optimisation, and avoiding last-minute stress.

Tax planning strategies

Writing off bad debts
Businesses should finalise deductions by writing off unrecoverable debts before 30 June.

If you’re owed money that’s unlikely to be recovered, you can write it off as a tax deduction—but only if it’s done before 30 June. The debt must have been previously declared as income, and you’ll need to show clear evidence that recovery efforts were made and the debt was formally written off in your books.

This simple step can help reduce your taxable income for the year and tidy up your balance sheet.

Bonuses & director fees
Ensure all staff or director bonuses are confirmed in writing and notified by 30 June—even if paid later—to secure the corresponding deductions.

Planning to pay staff or directors a bonus or fee? To claim a deduction this financial year, it must be formally committed to in writing by 30 June, even if the payment happens later.

Proper documentation—such as board minutes or letters of offer—is essential. Without it, the ATO may deny the deduction. We can help you get it right before EOFY.

Prepaying interest & expenses
Bring forward interest on investment loans (e.g. rental properties) and eligible operating costs—like insurance, subscriptions, or repairs—so they count in this FY.

Prepaying deductible expenses like investment loan interest, rent, insurance, or subscriptions before 30 June can bring forward a tax deduction into this financial year.

Individuals can generally prepay up to $1,000; small businesses may be able to prepay up to 12 months of expenses if their turnover is under $50M.

This strategy is most effective when you expect to be in a higher tax bracket this year and have the cash available. Timing and documentation are key—speak with us to ensure eligibility and maximise the benefit.

Stock & asset review
Write off obsolete stock and remove unused assets from depreciation schedules. 

Now’s the time to review your inventory and asset list. Write off any obsolete or damaged stock to reduce taxable income, and check if unused assets can be removed from your depreciation schedule.

Small businesses may also benefit from the instant asset write-off (up to $20,000 per asset purchased after 1 July 2024, subject to eligibility). These actions help clean up your records and minimise your tax bill.

Electric vehicle considerations
Eligible for both depreciation and Fringe Benefits Tax concessions—but ensure proper documentation.

If your business uses electric vehicles (EVs), you may be eligible for tax deductions and Fringe Benefits Tax (FBT) exemptions—but only for qualifying models below the luxury car threshold.

Ensure you’ve kept logbooks, usage records, and purchase details to substantiate claims. With EV incentives changing, it’s important to check you’re capturing all available tax benefits correctly.

Income & capital timing
Defer invoicing or asset disposals to after 30 June to delay income recognition.

If you’re in a position to delay income—such as invoicing clients after 30 June—you may defer tax to the next financial year. Similarly, realising capital losses before year-end can offset gains and reduce tax.

Be careful with the ATO’s anti–wash-sale rules, which disallow losses from artificial asset sales and repurchases. Smart timing can make a big difference—just ensure the strategy is legitimate and documented.

PSI, company loans, trusts & logbooks
If you earn Personal Services Income (PSI), ensure you’re meeting ATO rules around income attribution and deductions.

For companies, review any Division 7A loans to shareholders—these must be properly documented or repaid to avoid being treated as unfranked dividends.

Trusts need to have trust distribution resolutions signed by 30 June to ensure correct tax treatment. And if you’re claiming vehicle expenses, make sure you’ve completed a valid 12-week logbook within the last five years or started a new one this year.

Insurance & private health review
EOFY is a great time to review your insurance cover—including life, income protection, and business policies—to ensure they still align with your needs.

Also check your private health insurance status. If your income is above the threshold and you don’t have appropriate cover, you could be hit with the Medicare Levy Surcharge. Prepaying premiums may also bring forward a tax deduction, depending on your circumstances.

Business structure check-up
As your business grows, your current structure—whether sole trader, partnership, trust, or company—might no longer be the best fit.

A structure review before 30 June can highlight opportunities to improve tax efficiency, manage risk, or plan for succession. The right setup can also better support super contributions, asset protection, and future expansion.

Superannuation considerations

Check contribution caps
Before making any super contributions, log in to myGov to check your concessional and non-concessional cap usage.

If you’re with an SMSF, be cautious—your balance may not reflect the latest transactions. We can help you get up-to-date figures so you don’t accidentally exceed your limits.

Deductible or salary-sacrifice contributions
You can contribute up to $30,000 in concessional (pre-tax) contributions this year. This includes employer super, salary sacrifice, and personal deductible contributions.

If making a personal contribution, submit a Notice of Intent to your fund and get acknowledgment before claiming a deduction on your tax return.

Carry‑forward (catch‑up) contributions
Haven’t used all your concessional cap in the past 5 years? If your total super balance was under $500,000 on 30 June 2024, you can make catch-up contributions and top up your super this year.

This is a great way to boost retirement savings and reduce tax if you’ve had fluctuating income.

Spouse contributions & tax offset
You may get a tax offset of up to $540 by making after-tax contributions into your spouse’s super fund, provided their income is under $40,000.

You can also consider splitting your own concessional contributions with a spouse to balance your retirement savings or improve your combined strategy.

Government co‑contribution
If you earn less than $60,400 and make an after-tax contribution of up to $1,000, you could receive a government co-contribution of up to $500.

It’s a simple way to grow your super if you’re a low- to middle-income earner.

Non‑concessional contributions & bring‑forward rule
You can contribute up to $120,000 in after-tax (non-concessional) contributions this year—or up to $360,000 using the 3-year bring-forward rule, if eligible.

Check your total super balance before contributing, as this affects your cap and eligibility.

Avoid Division 293 tax
If your income plus concessional contributions exceed $250,000, you may be hit with an extra 15% Division 293 tax on top of the standard 15%.

Strategic income and contribution timing can help avoid or minimise this.

Minimum pension payments
If you’re drawing a pension from your super, you must withdraw at least the minimum amount by 30 June to maintain tax-free earnings inside the fund.

Rates range from 4% to 14%, depending on your age. Don’t risk missing the deadline—it could cost your fund valuable tax concessions.

Why this all matters to Indigo clients

Taking these steps provides:

• A clear path to legitimate tax deductions

• Confidence that super contributions are maximised and structured

• Assurance that all steps are compliant and aligned with current thresholds

Need help crystallising your strategy?

Our team is ready to guide you—whether you’re juggling PAYG, SMSF, or multiple structures, we’ll tailor these steps to your scenario and help you implement them effectively before the 30 June deadline.

Contact Indigo Financial on (08) 8212 8585 if you need help understanding and planning your June 30 tax strategy, or any of your other accounting and taxation needs.

Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.