Year-end Tax Planning Opportunities & Risks For Businesses

STAFFORD, Australia - May 9, 2025 - PRLog -- Make the most of tax time with these key planning opportunities and watch-outs for businesses – from claiming deductions to avoiding ATO scrutiny.

Opportunities

1. Write Off Bad Debts

Your customer definitely not going to pay you? If all attempts have failed, the debt can be written off by 30th June to claim a deduction this year. Ensure you document the fact that you have written off the bad debt on your debtor's ledger or with a minute.

Obsolete Plant & Equipment

If your business has obsolete plant and equipment sitting on your depreciation schedule, instead of depreciating a small amount each year, scrap it and write it off before 30th June if you don't use it anymore.

For Companies

If it makes sense to do so, bring forward tax deductions by committing to pay directors' fees and employee bonuses (by resolution), and paying June quarter super contributions in
June.

Risks

Tax Debt and not Meeting Reporting Obligations

Failing to lodge returns is a huge 'red flag' for the ATO that something is wrong in the business. Not lodging a tax return will not stop the debt escalating because the ATO has the power to simply issue an assessment of what they think your business owes. If your business is having trouble meeting its tax or reporting obligations, we can assist by working with the ATO on your behalf.

Professional Firm Profits

For professional services firms – architects, lawyers, accountants, etc., – the ATO is actively reviewing how profits flow through to the professionals involved, looking to see whether structures are in place to divert income to reduce the tax they would be expected to pay. Where professionals are not appropriately rewarded for the services they provide to the business, or they receive a reward which is substantially less than the value of those services, the ATO is likely to take action.

To plan for tax time this year, contact our experienced team of accountants in Stafford, Queensland or visit https://mcfillin.com.au/.