Tax Tips
“How can I pay less tax?”
It’s a question a lot of Australians ask—especially as the end of financial year creeps closer. As a trusted accounting firm in Melbourne’s south east that’s worked with a lot of small businesses and individuals, we can confidently say: it’s never too late to get your tax planning sorted.
The truth is, good tax planning isn’t just for accountants and big corporations. With a bit of know-how and some smart strategies, anyone can reduce their tax bill, protect their finances, and feel more in control of their money.
One of the best things you can do is plan ahead. Keeping track of your income and expenses—and regularly updating your forecasts—can help you prepare for any cash flow crunches and avoid surprises down the road.
In this blog, we’ll walk you through a few practical ways to lower your taxes in 2025. These tips could help boost your take-home pay, grow your savings, and give you that sweet sense of financial stability we’re all chasing.
1. File on Time: Ensure you meet all deadlines for submitting your tax returns. Late submissions can incur penalties and interest, impacting your overall tax position.
2. Claim All Your Deductions (Seriously, Don’t Miss These)
If you’re spending money on work-related stuff, chances are you can claim it. Think tools, uniforms, professional development, home office expenses, even your phone bill if you use it for work.
Hot tip: Keep good records—receipts, invoices, and a quick note on what the expense was for. No receipt, no deduction!
3. Utilise Personal Super Contributions (And Save on Tax Now)
Topping up your super with extra contributions (up to the concessional cap of $30,000 for the 2025 financial year) is a great way to reduce your taxable income and boost your retirement savings.
If you’re a sole trader or business owner, you’ve got even more flexibility with this. Plus, there may be carry-forward options if you didn’t use your cap in previous years.
4. Consider Prepaying Expenses
If you're a small business owner or sole trader, prepaying certain expenses—like insurance, subscriptions, or rent—before June 30 can allow you to claim the deduction this financial year. Just make sure the payment covers a period of 12 months or less.
5. Use the Instant Asset Write-Off (While It’s Still Available)
The rules around this change often, but for now, eligible businesses can claim an immediate deduction for the full cost of certain assets (like equipment, vehicles, tools) up to a set threshold. It’s worth checking what’s eligible in 2025, as the limits and rules can shift year to year.
6. Write Off Bad Debts
If someone owes you money and you’ve tried everything to collect it, you may be able to write it off as a bad debt—and claim a deduction. Just make sure you document your attempts to recover the money.
7. Keep Your Business Structure Tax-Efficient
Whether you're a sole trader, company, trust, or partnership, your business structure plays a big role in how much tax you pay. It’s worth checking in with your accountant to see if there’s a more tax-effective setup based on where your business is at now.
8. Plan for Capital Gains Tax (CGT)
If you're selling investments—property, shares, or even crypto—timing matters. Holding an asset for more than 12 months usually qualifies you for a 50% CGT discount. So if you’re thinking of selling, a bit of timing can save you big bucks.
9. Track Your Vehicle and Travel Expenses
Do you use your car for work? There are a few methods you can use to claim deductions—logbooks, cents per kilometre, etc. Just make sure you're using the one that gives you the best outcome and that you’ve kept proper records.
10. Don’t Forget About Home Office Deductions
Working from home (even part-time)? You may be able to claim a portion of your electricity, internet, office furniture, and more. The ATO has a shortcut method, but often a detailed claim gets you more back—if you have the records to support it.
11. Gift or donate to causes important to you: Donations made to registered charities can be an important tax deduction for individuals and businesses in Australia. When you donate to a Deductible Gift Recipient (DGR), you may claim these contributions on your tax return, reducing your overall taxable income.
12. Get Professional Help
This one’s simple: a good accountant is worth their weight in gold. They’ll help you spot deductions you didn’t know about, keep you compliant, and make sure you’re not paying more tax than you have to.
Want help applying any of these before the EOFY rush hits? Or curious which ones would give you the biggest boost? We’re here to make it easy.
Ready to Save on Tax in 2025?
Don’t wait until June 30 is breathing down your neck—tax planning works best when it’s proactive. Whether you're a business owner, freelancer, or just want to make your personal finances work harder, a solid plan can help you keep more of what you earn.
💼 Need help figuring out what strategies apply to you?
We’d love to help. Book a free 30 minute consult with our Yarra Ranges accounting team and let’s map out a tax-smart plan tailored to your goals.