EOFY 2025: Smart Tax Planning Strategies for High-Income Earners and Business Owners – Part 1.
As the end of the financial year approaches, now is the ideal time to assess the steps you can take to optimise your tax position and prepare for the new financial year.
At New Leaf Advisory we view tax planning not as a last-minute scramble, but as a year-round, strategic discipline designed to support long-term wealth creation and financial security.
In Part 1, we revisit and enhance key strategies that high-income individuals, business owners, and investors can consider before 30 June 2025.
These are general insights – always seek personalised advice based on your circumstances.
1. Superannuation Contributions: A Core Strategy for High Net Worth Individuals
Superannuation remains one of the most powerful tools for reducing tax while building long-term, tax-effective wealth.
A. Concessional Contributions (CCs)
- FY25 cap: $30,000 – Includes employer SG payments, salary sacrifice, and personal deductible contributions.
- Taxed at just 15%, significantly lower than top marginal tax rates.
- Deadline: Contributions must clear into your fund by 30 June 2025.
Catch-Up Strategy: If your super balance was under $500,000 at 30 June 2024, and you have unused caps from FY19 onwards, you may be eligible to make catch-up contributions to reduce taxable income this year.
B. Non-Concessional Contributions (NCCs)
- Cap for FY25 is $120,000, or up to $360,000 under the bring-forward rule.
- Funded from after-tax income, ideal for clients looking to maximise retirement savings.
C. Spouse Contributions
- Consider contributing to your spouse’s super if their income is under $40,000.
- May entitle you to a tax offset of up to $540, and boost your household’s overall retirement planning
2. Prepay Deductible Expenses to Bring Forward Tax Benefits
Prepaying expenses such as:
- Interest on investment loans / Business rent or insurance / Subscriptions and memberships.
This may help reduce your FY25 taxable income. The ATO permits deductions on prepaid expenses that cover services up to 12 months ahead, as long as they conclude in the next financial year. This is ideal for professionals and investors with predictable annual expenses.
3. Defer Income – Strategically
If you’re in control of how and when you receive income, consider deferring to the next financial year if it suits your overall tax plan.
For Business Owners:
- Delay invoicing until July 2025, where cashflow allows and accounting standards are maintained.
For High-Income Individuals:
- Postpone bonuses, dividends, or trust distributions until FY26 if you’re expecting lower income next year.
Caution: This strategy may backfire if FY26 income is expected to be higher. Always consult your adviser to avoid adverse tax outcomes.
4. Leverage the Instant Asset Write-Off and Depreciation Rules
Key Update for FY25:
- Small businesses with turnover under $10 million can immediately write off assets costing less than $20,000, provided they are installed and ready for use by 30 June 2025. Assets over $20,000 must be depreciated using the small business pool (15% first year, 30% thereafter).
This is particularly relevant for medical can legal practices, construction and trade businesses, investment property owners with eligible assets.
Now is the time to review tools, equipment, vehicles, and technology – and ensure they align with both business growth and tax strategy.
5. Write Off Bad Debts and Obsolete Inventory
To claim deductions for bad debts, they must be written off before 30 June.
Similarly, review inventory for obsolete or slow-moving stock – this can also provide valuable tax relief.
This is an essential year-end task for SMEs, especially in retail, manufacturing, or distribution.
EOFY 2025 Is About Proactive Financial Strategy
The end of the financial year is more than just a compliance deadline – it’s a chance to refine your financial strategy, reduce tax, and enhance wealth outcomes.
At New Leaf Advisory, we partner with high-net-worth individuals, business owners, and professionals across Sydney to design tailored, proactive strategies.
Whether you’re managing a complex trust structure, preparing for retirement, or growing a business, our expertise ensures you’re financially ready for what’s next.
Book a Smart Tax Planning Review Today
Don’t leave EOFY planning until the last minute. Contact New Leaf Advisory now to secure your personalised tax planning session and start FY26 with confidence and clarity.
Get in touch today to finalise your year-end position and start FY26 strong.