With 30 June 2025 fast approaching, now is the perfect time to review your financial position and take action.

Proactive tax planning can help you minimize your tax bill, strengthen your financial position, and avoid unnecessary stress when lodgments are due.

At O’Briens, we work closely with our clients to provide confidence and clarity through tax planning scenario modelling and the preparation of Trustee Resolutions.

We’ve compiled a list of key considerations to ensure you are well prepared prior to 30 June.

ATO Interest Deductibility from 1 July 2025.

General Interest charges (11.17%) and shortfall interest charges (7.17%) charged by the ATO from 1 July 2025 will no longer be tax deductible. This will have an impact on taxpayers with tax liabilities that are overdue, existing payment arrangements or future tax shortfalls, increasing the cost of unpaid debt.

To mitigate the changes the following strategies might be relevant;

• Bring forward debt, get on top of any outstanding lodgements.
• If possible, paying out arrangements before 30 June
• Business taxpayers who may be able to obtain a deduction for the interest they may consider seeking alternative finance options. The alternative finance could replace non-deductible GIC with deductible interest expenses. Unfortunately for personal debt (individuals) interest will not meet deductibility criteria.

 

Tax Advice For Individuals

If you are an individual taxpayer, here’s what you need to be thinking about:

Taxable income and marginal tax rates

Understanding which tax bracket you fall into is key to identifying the most effective strategies for your situation.
Compared to previous years, individuals now have greater capacity to absorb taxable income at lower tax rates:

Taxable Income	Tax Payable
$0 – $18,200	Nil
$18,201 – $45,000	16c for each $1 over $18,200
$45,001 – $135,000	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,288 plus 37c for each $1 over $135,000
$190,001 and over	$51,638 plus 45c for each $1 over $190,000

Note: The above rates exclude the Medicare levy of 2%.

Maximise your super contributions

The concessional contribution cap has increased to $30,000. If you are in a higher income tax bracket you might consider the tax benefits of contributing to your fund and claiming a tax deduction.
Make sure you don’t leave contributions until the last minute, as some super funds have early/mid-June cut-off dates.
If you have unused concessional caps from previous years, you may be able to make catch-up contributions. You will need to enquire about eligibility criteria or talk to our Financial Planning team for a more comprehensive superannuation strategy.

For those not looking for a tax deduction but keen to increase their super balances, the non-concessional cap is $120,000 per annum.

Work-related deductions

Ensure you retain all relevant records to substantiate your claims.
If you are using the fixed rate method for home office expenses, you must have records confirming your number of hours worked from home. The home office set rate is increasing from 67c to 70c per hour.

HECS/HELP debt

Upcoming 3.2% indexation is scheduled for 1 June 2025. Indexation will now be the lower of CPI or the Wage Price Index (WPI).
We are also awaiting confirmation on whether the proposed 20% reduction to student loan debts (announced November 2024) will be legislated.

Capital gains

Review your realised and unrealised capital gains and losses on investments, as well as any carried-forward losses.
If you are considering buying or selling investments before 30 June, it’s crucial to understand the CGT impact first.
Strategic timing can significantly improve your tax position. We recommend reaching out to your Advisor for personalised advice.

 

Tax Advice For Trusts

If you operate through a trust, it’s essential to proactively manage distributions and ensure compliance with the latest ATO guidance.

Trustee resolutions

Trustee resolutions must be signed before 30 June.
Without proper planning, distributing to the wrong beneficiary or triggering default distributions could result in unnecessary tax costs.

Trust deed and beneficiary reviews

Make sure your trust deed aligns with your intended income distribution strategy.
Check your primary and potential beneficiaries — this can have family law implications and may even trigger unintended land tax exposure for non-resident beneficiaries.

Section 100A alert

The ATO is closely scrutinizing non-commercial trust distributions.
Trustees must ensure that arrangements are properly documented and commercially genuine.

Streaming of franked dividends and capital gains

Special care must be taken when streaming franked dividends or capital gains to access valuable tax benefits.

TFN reporting

Where a beneficiary provides their Tax File Number (TFN) to the trustee, a TFN report must be lodged with the ATO.
Reports are due by the end of the month following the end of the quarter in which the TFN is quoted.
(Example: If quoted between July and September, the report is due by 31 October.)

 

Tax Advice For Companies

Business owners and directors — here’s your 30 June checklist:

Division 7A and loans to related parties

Review all loans to related parties. Where possible, arrange for loan repayments to avoid deemed dividends.
Ensure minimum yearly repayments are made and loan agreements are properly documented.
The Division 7A benchmark interest rate for the 2025 year has increased to 8.77%.

Tip:
If you intend to declare dividends to offset loans, consider declaring them early in the year to reduce interest charges in FY26.

Unpaid Present Entitlements (UPEs)

Review and manage any UPEs to avoid Division 7A consequences, including particular attention to relevant dates to avoid the creation of deemed dividends.

Instant asset write-off

Small businesses (with turnover under $10 million) can immediately deduct the full cost of eligible assets costing less than $20,000, first used or installed ready for use between 1 July 2024 and 30 June 2025.
This immediate deduction replaces claiming depreciation over time.

Dividends and franking rates

If declaring dividends, plan carefully.
If your turnover is under $50 million and passive income is below 80%, your franking rate is 25%. Otherwise, the rate will be 30%.

Employee bonuses and superannuation

Consider the timing of any staff bonus payments to ensure deductibility this year, there must be a clear commitment and quantifiable.
Also, note that the superannuation guarantee rate increases from 11.5% to 12% on 1 July 2025.

Trading entities

Consider trading stock elections and completing timely stock takes.

Timing of transactions. This must be commercial. Is there any upcoming expenditure that would meet the prepayment rules?

Review your accounts receivable, are there any bad debts that need to be written off. If so, your assessment process must be documented and justified.

ATO Audit Hotspots for 2025

The ATO has flagged the following focus areas:

• Excessive work-related expense claims
• Rental property deductions that don’t match actual usage
• Cryptocurrency transaction reporting
• Trust distributions to low-taxed or loss entities
• Division 7A and UPE issues within private groups

Good documentation and early review are your best defenses — and can save you significant time, money, and stress later!

 

Need Help with Your 2025 Tax Planning?

Planning ahead now can save you time, stress, and money.

Call us today at (03) 8850 3333 or fill this form if you’d like us to review your position and help you put a tailored tax plan in place before 30 June!