As we approach the end of the 2024–2025 financial year, now is the time for sole traders and small business owners to take a final look at their tax position and ensure everything is in order before 30 June. A few simple actions over the next few weeks could make a big difference when tax time comes around.

Whether you operate as a sole trader, run a small company, or manage a trust, here are some practical last-minute steps to reduce your tax bill and stay compliant:

1. Maximise Your Super Contributions

✅ Applies to sole traders and company/trust owners (as individuals)

Super contributions are a powerful tool for both tax savings and long-term wealth building. For the 2024–25 financial year, the concessional contributions cap has increased to $30,000. This includes employer super and personal contributions that you intend to claim as a tax deduction.

If you’re a sole trader, you can make personal deductible contributions to your own super. If you run a business with employees, ensure your own contributions are separate from employer obligations. Also, if you’re eligible, you may carry forward unused cap amounts from the last five years.

Note that your super fund must receive the payment by 30 June 2025 for it to count in this financial year. Visit ATO for more infomation on super contribution caps.

2. Take Advantage of the $20,000 Instant Asset Write-Off

✅ Applies to sole traders, partnerships, companies, and trusts

Planning to buy new tools, equipment, or tech? If you’re a small business with a turnover under $10 million, you may be able to claim an immediate deduction for eligible assets costing less than $20,000, provided the asset is first used or installed ready for use by 30 June 2025.

This temporary threshold has been extended through the 2024–25 financial year. It’s a great opportunity to reinvest in your business while also reducing your taxable income.

Visit ATO find out if your business is eligible for the $20,000 instant asset write-off

3. Review Your PAYG Instalments

✅ Applies to sole traders and business entities with PAYG obligations

If your business income this year is lower than expected, you may be paying more tax than necessary through PAYG instalments. Before lodging your next activity statement, consider varying your instalment amount to reflect your actual profit.

This is especially useful for seasonal businesses or those with changing income levels year-to-year. Just ensure your revised amount is reasonable to avoid ATO penalties.

4. Finalise Your Trust Distribution Resolutions

✅ Applies only to businesses operating through a discretionary or family trust

If your business operates through a discretionary or family trust, it’s essential to prepare and sign your trust distribution resolution before 30 June 2025. This determines how the trust income will be distributed—and taxed—for the year.

Failing to complete this in time may result in the trust being taxed at the top marginal rate on its income. For a helpful summary of trust-related obligations, visit the ATO’s EOFY checklist for trustees.

These final weeks are a great opportunity to take action. Whether you’re planning ahead or catching up, we’re here to help with tailored advice and support. Reach out to MKG Partners to ensure your business closes out the financial year in the best possible shape.