Make the Most of Tax Time: Smart Moves & Things to Watch Out For As a Business

💡 Opportunities to Improve Your Tax Position

• Write Off Bad Debts

  If a customer definitely won’t pay you, and you’ve tried everything, you can write off the bad debt for tax purposes before 30 June. This helps you claim a deduction and reduce your taxable income. Just make sure it’s properly recorded in your accounts.

  
  

• Scrap Unused Equipment

  Got old equipment you no longer use? Instead of slowly depreciating it, you can write it off now and reduce your tax bill. Do this before 30 June to get the benefit this year.

  
  

• Bring Forward Deductions (For Companies)

  If it suits your business, you can improve your tax position by locking in directors’ fees and employee bonuses (with a resolution), and paying June quarter super contributions before the end of June. These actions can bring forward deductions into this financial year.

  
  

⚠️ Risks to Be Aware Of

• Unpaid Tax or Late Lodgements

  Not lodging your tax returns on time is a big warning sign for the ATO. Even if you don’t lodge, the ATO can still estimate what you owe and charge you. If you're struggling with tax or reporting, we can help by working with the ATO on your behalf.

• Professional Firm Profits Under Review

  If you run a professional services firm (like a law, accounting, or architecture business), the ATO is checking how profits are shared. If income is being diverted to reduce tax unfairly, or if professionals aren’t being paid fairly for their work, the ATO may take action.

  
  

❓ Questions or Need Help? We’re here to help you maximise your tax opportunities and minimise your risks. Talk to us today to improve your tax position and stay on the right side of the ATO.