Tax Planning 2024- 2025

Tax Planning for FY 2024-2025
Below are the key tax planning for FY 2024-2025

Instant Assets Write-off: Eligible Businesses can claim an immediate deduction for the
business portion of the cost of an asset in the year the asset is first used or installed ready
for use, this instant asset write -off can be used for, multiple assets if the cost of each
individual asset is less than the relevant limit. IAWO is also eligible new and second- hand
assets. Small Business with aggregated turnover of less than $ 10 million will be able to
immediately deduct the full cost of eligible assets costing less than $ 20,000 that are first
used or installed ready between 1st July 2024 30th June 2025
Deductible Super Contributions: The Concessional superannuation cap for FY 2024
is $ 30,000 for all individuals. Please also note that employer super guarantee
contributions are included in these caps.
Motor Vehicle Logbook: Keep an accurate and complete MV logbook for at least a
12-week period. The start date for the 12- week period must be or before 30 June

Make sure have you have kept all receipts/ invoices for motor vehicles
expenses. An alternative (with no logbook needed) is to simply claim up to 5,000
business kilometres (based on a reasonable estimate) using cents per km method.

Investment Property Depreciation: Arrange the preparation of a property depreciation
report to claim the maximum amount of deprecation and building write- off deduction
on rental property
Write -off Bad Debts: Review the trade debtors and write- off all bad debts before 30
June 2025. Prepare a management meeting document listing each bad debt, as
evidence that these amounts were written off prior to year- end and enter these into
accounting system before 30 June 2025.
Small Business Concessions – Prepayments: “Small Business Concession” taxpayers
can make prepayments (up to 12 months) on expenses (e.g. loan interest, rent,
subscriptions) before 30 June 2025 and obtain a full tax deduction in the 2025
financial year.
Trustee Resolutions: Make sure that Trustee resolutions are prepared and signed
before 30 June 2025 for all discretionary (“Family”) Trusts.
Div 7A: Private Company’s Business owner who have borrowed the funds from their
company in previous years must ensure that the appropriate principal and interest
repayments are made by 30 June 2025. Current year loans must be either paid back in
full or have a loan agreement entered in before the company’s return.
Deduction: The ATO is paying close attention to what people are claiming as other
work – related expenses deduction. You need to show that you spent the money
yourself and were not reimbursed. The expenses were directly related to earning
their income and you have record to prove It(TR 2020/1).
Vacant Land: There is no deduction for interest incurred in vacant land. The new
law applies to costs incurred on or after 1 July 2019, regardless of the whether the
land was held prior to this date. The new law rules only apply to individuals, trusts
and SMSF.( s 26-102 ITAA 1997).