The end of the 2024–25 financial year is fast approaching—and for small business owners, that means one thing: tax time. Whether you’re a sole trader, freelancer, or running a growing company, there are smart ways to wrap up the year that can save you money, reduce stress, and keep the ATO happy. This guide breaks down the key strategies, updates, and deductions you should know about to finish the financial year strong—and set yourself up for an even better one ahead.
Make the Most of the $20,000 Instant Asset Write-Off (While it Lasts)
If you’ve been eyeing that new laptop, toolset, or espresso machine for your café, now might be the perfect time to pull the trigger—at least from a tax perspective.
The $20,000 instant asset write-off has been extended for the 2024–25 financial year, and it’s one of the most powerful tools small businesses have to reduce their taxable income. Under this scheme, eligible small businesses with an aggregated turnover of less than $10 million can immediately deduct the cost of eligible assets that are under $20,000 (excluding GST if you’re GST-registered). But here’s the catch: the asset must be first used or installed and ready for use before 30 June 2025.
So, What Does This Actually Mean?
Let’s say you run a landscaping business and pick up a ride-on mower for $18,000 in May 2025. As long as it’s delivered and ready to roll before 30 June, you can write off the full cost as a business deduction in your 2024–25 tax return. No waiting. No depreciation over years. Just instant relief.
A few important reminders:
- The $20,000 threshold applies per asset—not in total. So, if you buy three separate items at $19,000 each, they all qualify individually.
- Assets over the $20,000 threshold can’t be written off instantly, but they can be depreciated using the simplified depreciation rules.
- The asset must be used for business purposes. Personal use? Sorry, that’s not going to cut it.
Timing is Everything
The ATO has made it clear that your asset must be installed and ready for use before 30 June 2025 (and it looks like the instant asset write-off hasn’t been extended for another year, so now might be your last chance). Ordering something in June that doesn’t arrive until July? That’s going in next year’s return, not this one.
You can find more details on eligibility, asset types, and timing on the ATO’s Instant Asset Write-Off page.
Pro Tax Tip: If you’re not sure whether to claim the write-off or depreciate, an ITP small business tax expert can help you make the most tax-effective choice based on your broader strategy.
Claiming Work-From-Home Expenses in the 2024–25 Financial Year
Still working from home—either full-time, part-time or just a few days a week? Good news: you may be able to claim some of your running costs as tax deductions. But the ATO has made some important changes to how those claims work, so it’s worth getting across the updated rules before tax time.
As of 1 July 2022, the 80 cents per hour shortcut method is no longer available. Instead, the ATO has introduced a revised fixed rate method of 67 cents per hour, which applies for the entire 2024–25 financial year.
What’s Included in the Fixed Rate Method?
The 67c/hour rate covers:
- Electricity and gas (for lighting, heating/cooling)
- Internet expenses
- Mobile and home phone usage
- Stationery and computer consumables (like printer ink and paper)
To use this method, you must keep a record of your actual hours worked from home. The ATO no longer accepts estimates or four-week diary samples. If you’re claiming under this method, you also can’t separately claim any of the above expenses.
However, you can still claim depreciation on office furniture and equipment (like your work desk or laptop), as long as you keep receipts and records.
Read more about the ATO’s revised fixed rate method
Prefer to Claim the Actual Costs?
You can choose the actual cost method instead, where you calculate the work-related portion of each expense based on your usage. This method is more work, but it may result in a larger deduction—especially if you have high electricity or internet costs.
Whichever method you choose, good record-keeping is essential. And if you’re not sure which option will give you the best result, we can help you do the maths. Ask an ITP accountant to help crunch the numbers and choose the best option for you.
Keep Accurate Records—It’s Not Optional
It should come as no surprise that at the top of our list for EOFY 2024–25 tax tips for small businesses is this: Records. Records. Records.
EOFY is crunch time—and your records are your best defence against errors, audits, and missed deductions. The ATO requires businesses to keep records for at least five years, and in some cases (like for companies and payroll records), you’ll need to hold onto them for seven.
Smart Record-Keeping Tips:
- Keep receipts, invoices, contracts, and other source documents for all business transactions
- Store records by financial year for easier sorting
- Use reliable accounting software like Xero, MYOB, or QuickBooks to keep everything organised
- Store records digitally—they don’t need to be paper-based, but they must be easily retrievable
Want to know exactly what the ATO expects? See their full rundown on record keeping for business.
Pro Tax Tip: Good records make tax time faster and less stressful. They also help your accountant spot deductions you might miss on your own.
Need help setting up your record-keeping system or switching to accounting software? We’ve got your back.
Quick-Fire Round: Bonus EOFY 2024–25 Tax Tips for Small Businesses
If you’ve already got everything above covered, but are looking for some last-minute ways to trim your tax bill before 30 June, here are four EOFY 2024-25 tax tips every small business owner should have up their sleeve:
Claim Everyday Operating Expenses
Don’t underestimate the value of your day-to-day costs. Common tax-deductible expenses include advertising, office utilities, accounting fees, employee wages, training costs, and insurance premiums. Even smaller items—like your Canva subscription or branded uniforms—can add up to meaningful deductions.
If it helps you earn assessable income and isn’t private in nature, chances are it’s claimable. Just be sure to keep records—even for expenses under $82.50.
Prepay to Bring Forward Deductions
Expecting a drop in income next year? Prepaying up to 12 months of business expenses—like rent, insurance, or subscriptions—before 30 June could allow you to deduct the full amount this year. Just make sure your business has an aggregated turnover under $50 million and that the service will be delivered within 12 months. The ATO has more on prepaid expenses here.
Do a Stocktake
Got inventory? A stocktake isn’t just a box-ticking exercise—it can directly reduce your taxable income. Write down the value of damaged, outdated, or unsellable stock and claim it as a deduction. Learn more on the ATO’s stocktake and inventory page.
Don’t Miss the Super Deduction Deadline
The Super Guarantee rate is now 11.5%, and the rules haven’t changed: super is only deductible when it’s received by the employee’s fund. Pay by 30 June or risk losing the deduction (and facing penalties). Get the full SG payment rules from the ATO here.
Want personalised guidance? Speak to an ITP tax agent and we’ll help you make EOFY work for your business, not against it.
Let the Experts Help You Make EOFY Count
Tax time doesn’t have to be a scramble. With the right advice and a solid understanding of what you can claim and how, EOFY becomes more than just another deadline to scramble for—it’s a chance to take control of your finances and plan for a stronger year ahead.
Over 90% of small businesses already use a registered tax agent, and it’s easy to see why. A good agent isn’t just there to lodge your return—they’re your partner in minimising your tax, navigating the latest ATO updates, and spotting opportunities you might otherwise miss. From super strategies and asset write-offs to loss carry-back rules and fringe benefits, a tax pro knows how to make the numbers work for you.
You can even claim their fees as a deduction!
At ITP, our accountants live and breathe small business tax. Whether you’re navigating your first EOFY or want to sharpen your tax strategy this year, we’re here to help.
Book a consultation and make this EOFY your smoothest one yet.