EOFY 2025: Advanced Tax Planning for Complex Financial Structures – Part 2.

As the end of the financial year fast approaches, now is the time to review your group structure—especially if you have trusts, companies, private investments, or interlinked entities.

In Part 1 of our EOFY series, we covered practical tax planning strategies for simpler structures. In this article – Part 2, we shift our focus to sophisticated strategies for high-income individuals and businesses with more complex financial affairs.

At New Leaf Advisory, we take a proactive, strategic approach to tax planning. Our goal is to help our clients minimise risk, manage obligations, and enhance long-term wealth with technical precision and tailored guidance.

1. Division 7A: Managing Private Company Loans

If you have private company structures, Division 7A remains one of the most critical areas to manage to avoid costly, unintended tax liabilities.

What to do before 30 June 2025:

• Review shareholder loan balances and ensure any unpaid amounts are: 
  • Repaid in full, or 
  • Covered under a complying Division 7A loan agreement. 
• Make minimum yearly repayments by 30 June.
  
• Declare dividends where appropriate to fund repayments or restructure arrangements.
  
• Apply the correct benchmark interest rate (8.27% for FY25). 

Top Tip: If you have multiple entities or inter-entity loans, conduct a full review to avoid inadvertent breaches or deemed unfranked dividends.

2. Trust Distribution Resolutions & Company Dividends

Improper or late trust resolutions can result in the trustee being taxed at the top marginal rate (47%).

Before 30 June 2025:

• Draft and finalise trust distribution resolutions.
  
• Project trust income accurately to: 
  • Allocate to adult beneficiaries or
    
  • Use bucket companies where beneficial. 
• Review arrangements in light of ATO rulings on Section 100A, which target circular distributions or arrangements lacking genuine commercial purpose. 

For companies:

• Assess the capacity to pay dividends based on retained earnings and cash flow.
  
• Declare dividends before EOFY, applying franking credits where applicable. 

Issue dividend statements at the time of declaration, not retrospectively.

3. Capital Gains Tax (CGT) and Portfolio Optimisation

Now is the time to review your investment portfolio to optimise tax outcomes.

Considerations:

• Harvest capital losses to offset gains from other asset sales.
  
• Defer asset disposals to FY26 if income will be lower next year.
  
• Confirm 12-month holding period to access the 50% CGT discount.
  
• Ensure gains made in trusts are distributed appropriately—CGT is assessed at the beneficiary level. 

 Top Tip: Timing matters. Engage your accountant early to model CGT impacts for any transactions prior to 30 June.

4. Superannuation: Contributions and Pension Planning

Superannuation remains a cornerstone of effective tax planning—especially for high-income earners and SMSF trustees.

Pension Phase:

• The 50% pension drawdown reduction ended on 1 July 2023.
  
• Make minimum pension payments based on your age at 1 July 2024 to maintain tax exemptions on fund earnings. 

Contributions (FY25 caps):

• Concessional: $30,000 — plus carry-forward contributions if super balance < $500,000.
  
• Non-Concessional: $120,000, or up to $360,000 using the bring-forward rule (eligibility rules apply).
  
• Transfer Balance Cap (TBC) is now $1.9 million. 

 Reminder: Contributions must be received and cleared in your super fund’s account by 30 June 2025 to qualify for FY25.

5.  Strategic Philanthropy & Tax-Deductible Giving

For those looking to give back while also planning smartly:

• Make donations to Deductible Gift Recipients (DGRs) by 30 June for an immediate tax deduction.
  
• Large donations? Consider spreading them across years to avoid exceeding usable deduction limits.
  
• Establish a Private Ancillary Fund (PAF) or sub-fund for structured, long-term giving. 

6. Final Thoughts: Integrated Tax Strategy for Complex Structures

EOFY tax planning for individuals and businesses with trusts, private companies, or significant investments goes far beyond routine compliance. It requires tailored, strategic advice to preserve wealth, manage risk, and optimise results.

At New Leaf Advisory, we work closely with affluent families, investors, and business owners in Sydney to deliver precision, structure, and peace of mind.

Let’s Talk Tax Strategy Before 30 June

Need help reviewing your trusts, company structure, or private wealth strategy?

Contact New Leaf Advisory today to arrange a confidential EOFY review.

Speak to us today and take control of your tax outcomes before 30 June 2025.