With the end of the financial year almost upon us, it not too late to captalise on those tax bonuses.
Tamworth’s Cannon Accounting & Taxation Director Jason Cannon said now is the time to do some last-minute planning to maximise your tax refund.
“If you’re running your own business and turnover less than $10 million, this allows you to claim an immediate tax deduction for all capital purchases costing less than $20,000, rather than depreciating the cost over several years,” Mr Cannon said.
“This includes items such as computers and phones, as well as tools and equipment, office furniture and even cars.
“Of course these items must be used in your business before 30 June 2025, to be able to claim the deduction in the 2025 year.”
The Australian Tax Office says if you are employed but work from home, either occasionally or all the time, you are entitled to some deductions, including cleaning, utility bills, computer equipment, telephone and internet and some other capital equipment.
For more information check out the ATO website www.ato.gov.au
Mr Cannon said another tip was to consider End of Financial Year specials.
“Any purchases you make now can be deducted in this year’s tax return, so from a cash flow point of view, you can minimise the time between purchase and tax deduction.”
“Another suggestion is to prepay some expenses which wholly or partly relate to next year.”
“If you have some spare cash, consider paying subscriptions and annual insurance premiums in advance to accelerate the deduction. “
“Make sure you keep receipts, invoices and bank statements to back up any claim.”
Financial advisors and accountants also recommend making a personal contribution into your superannuation fund.
“Provided the total amount of your contributions (including the contributions made on your behalf by your employer) does not exceed $30,000, this can be a great way to boost your retirement savings and claim a tax deduction for the personal contribution.”
“Also don’t forget there is also a carried forward tax deductible amounts that have accrued from the last five years that can be claimed so talk to your accountant for more information on this,” Mr Cannon said.
“The payment must be made and processed by your super fund by June 30 and you need to advise your fund you will be claiming a tax deduction for the contribution by the time you lodge your tax return.”
There is more information about superannuation contributions on the ATO’s website www.ato.gov.au
Cannon Tax had one final tip for investors.
“If you’ve sold shares or any other form of investment and you know you’ve made a capital gain, look at your investment portfolio and consider disposing of any assets which you know are sitting at a loss. The resulting capital losses can be offset against the capital gain,” Jason Cannon said.
“Most investors can see the appeal of offsetting a gain with a loss, but the ATO is aware of this and urged investors not to deliberately sell assets and rebuy them just to minimise tax – this is prohibited under what is called ‘wash sale’ arrangements.”
“End of Financial Year isn’t about panic. It’s about planning. We love seeing clients take control, save tax and head into FY26 feeling confident.”
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