1. Prepay Expenses (Timing Advantage)
If your business turnover is under $50M, you can prepay certain expenses (like rent, insurance, subscriptions) up to 12 months in advance and claim the deduction this financial year.
Useful for bringing forward deductions and smoothing tax.
2. Write-Off Bad Debts Before 30 June
If a customer won’t pay:
You can claim a deduction for bad debts
BUT you must actually write it off in your accounts before EOFY
Many businesses forget to formally write them off.
3. Claim Home Office Running Costs Properly
Even if you have an office:
Directors or employees working from home can claim
Electricity
Internet
Phone
Use the ATO fixed rate (currently 67 cents/hour) or actual cost method.
4. Maximise Vehicle Claims (Logbook Refresh)
If you use vehicles for business:
A valid logbook lasts 5 years
But refreshing it can:
Capture increased business use
Improve your deduction %
5. Instant Asset Write-Off Opportunities
Eligible businesses can:
Immediately deduct assets under current thresholds (rules change often)
Think:
Tools
Equipment
Tech
Timing purchase before June 30 can shift deductions forward.
6. Super Contributions Strategy
Paying additional super contributions for yourself or employees:
Is generally tax-deductible
May reduce taxable income
Ensure payment is received by fund before June 30, not just processed.
7. Director Fees & Bonuses Timing
You can:
Declare bonuses or director fees
Deduct them this year
BUT:
Must be properly documented and locked in before EOFY
Especially useful for managing profit spikes.
8. Division 7A Loan Clean-Up
If you’ve taken money from your company:
Unmanaged loans can trigger unfranked dividends
Fix options:
Put a Division 7A loan agreement in place
Make minimum repayments
Prevents major unexpected tax bills.
9. Review Trading Stock Valuations
You can legally value stock at:
Cost
Market selling value
Replacement value
Choosing the lowest value reduces taxable income.
10. Software, SaaS & Digital Tools Deductions
Many businesses forget:
Xero, CRM tools, subscriptions, apps
Are fully deductible
Especially when prepaid or bundled annually.
Quick EOFY Checklist
✔ Write off bad debts
✔ Prepay key expenses
✔ Pay super before June 30
✔ Review assets for instant write-off
✔ Adjust stock values
✔ Lock in bonuses/distributions
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandco.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.au
Please refer to disclaimer at the bottom of the page.
