Boosting The Bottom Line: Easy EOFY Tax Tips For Small Business
For many small business owners, the end of the financial year (EOFY) can feel like a mad dash—chasing receipts, calculating deductions, and trying to meet deadlines. But with the right advice and preparation, including understanding tax offsets, using the right tax tips, EOFY can become more than just a compliance task.
It’s a golden opportunity to improve cash flow, reduce tax liability, and plan for smarter growth.
During this period, brokers are in an ideal position to guide clients through the numbers like the marginal tax rate and offer practical EOFY tax tips that make a real difference to their bottom line.
Your insights can help small businesses finish the financial year strong, from spotting deduction opportunities to recommending smart prepayments.
Top EOFY Tax Tips For Boosting The Bottom Line
EOFY is crunch time, but it doesn’t have to be chaotic. Here are some easy, practical EOFY tax tips, including opportunities for immediate tax deductions that you can pass along to your SME clients to help them minimise liabilities and optimise returns.
1. Don’t Leave Deductions On The Table
Many businesses may miss out on claiming deductions simply because they were unaware that it was claimable.
Every dollar spent for business purposes adds up, especially when tax season hits.
Examples of frequently overlooked potential tax-deductible expenses include:
- Mobile phone use (if used partly for work)
- Interest on business loans
- Home office expenses
- Donations to registered charities to offset capital gains
- Software subscriptions (e.g. Canva, Adobe, accounting tools)
Brokers may want to suggest clients run a report of all expenses over the last tax year and flag potential immediate deductions for their accountant.
You may also want to remind them to leverage the ATO’s $20,000 instant asset write-off for eligible purchases were made, and assets were used or installed before June 30. An office equipment, or key asset upgrade now could lead to significant savings.
2. Prepay Expenses And Reduce Taxable Income
Prepaying business expenses is a simple but powerful way to reduce taxable income. The Australian Taxation Office allows small businesses to prepay expenses 12 months in advance and claim the deduction in the current financial year.
If your client is expecting a high-income year, prepaying costs like rent, insurance, or digital services (like annual website hosting) can shift thousands off their income.
3. Make Superannuation Contributions Before The Cutoff
Super fund contributions are a smart tax offset strategy, but only if paid on time.
However, if it doesn’t land in the employee’s fund by June 30, it’s too late. To lock in those deductions and maximise tax benefits:
- Consider encouraging early payment (by mid-June or earlier)
- Recommend the ATO’s Small Business Super Clearing House for ease
- Remind SME clients to check contribution limits, especially if they offer salary sacrifice options
4. Review Inventory And Write Off Obsolete Stock
Carrying excess stock can artificially inflate profits if it’s not moving. Inventory that can’t be sold due to age, damage, or market changes should typically be reviewed or written down.
Brokers can consider suggesting the following EOFY tax tips to clients:
- Conduct a physical stocktake
- Identify items that haven’t moved in 6-12 months
- Revalue slow or unsellable inventory to market value
This is particularly helpful in retail, manufacturing, and eCommerce, where old stock can quietly accumulate without contributing to business income. Writing it down can allow a business to reflect its accurate financial position and possibly reduce taxable income.
5. Consider Depreciation Adjustments
Depreciation deductions can typically allow businesses to claim the decline in value of assets as capital losses over time, while also being mindful of potential assets or capital gains.
Even if a private company cannot claim a tax deduction through an instant asset write-off in the current financial year, it can still deduct depreciation.
This includes machinery, vehicles, office furniture, and computers. During EOFY, consider encouraging clients to:
- Review and update their depreciation schedules
- Remove assets that are no longer in use
- Check whether any assets qualify for immediate write-off
You can also suggest they consult with a tax professional or tax agent to assess whether they should use the simplified depreciation rules for small businesses, which can streamline the process and potentially increase deductions.
6. Revisit Vehicle And Travel Claims
For vehicle deductions, your clients should typically:
- Have a current 12-week logbook (updated every 5 years or with major changes)
- Record odometer readings as of June 30
- Apply business-use percentage to fuel, insurance, servicing, and depreciation
For travel, you can remind them that:
- Overnight trips require receipts and proof of business purpose
- Meal allowances need to meet ATO guidelines
- Travel diaries may be required for trips longer than 6 nights
Accurate documentation now, especially for work-related expenses, can prevent headaches in case of an unexpected audit later.
More details on tax law on these deductions can be found on the ATO deductions page.
7. Finalise And Lodge BAS & IAS Statements
Business Activity Statements (BAS) and Instalment Activity Statements (IAS) summarise key tax info. They are essential for accurate EOFY reporting.
Late or inaccurate lodgements can delay tax assessments or trigger compliance reviews. Brokers can suggest that clients:
- Reconcile BAS entries against financial records
- Double-check GST, PAYG and tax credits
- Lodge outstanding BAS/IAS forms
- Include any necessary adjustments or corrections
This process also helps reveal whether the business overpaid or underpaid taxes during the year, which can affect its final tax position.
If a refund is due, lodging can usually help the business get its money back sooner.
Helpful Tools To Organise And Prepare
Businesses’ financial documents can be a significant part of EOFY. Brokers can suggest tools and systems to help clients keep records, manage workflows, simplify tax planning, and streamline tax submissions.
Helpful tools and apps:
- Xero, MYOB, QuickBooks: Integrate banking, expenses, and payroll
- Dext (formerly Receipt Bank): Digitise and categorise receipts
- Trello/Asana: Task management tools to track EOFY checklists
- Hubdoc: Store financial income statements or documents containing capital gains or capital losses securely
Mistakes Brokers Can Help Clients Avoid
EOFY mistakes can lead to costly delays, ATO penalties, or missed deductions. As a broker, you can potentially help clients stay ahead by:
- Avoiding last-minute payments: It’s typically best to avoid lodging super contributions and tax too late
- Reconciling accounts: This can minimise reporting errors
- Fixing documentation: Improperly kept records may lead to denied deductions
- Ensuring finances aren’t mixed: Keep business and personal expenses separate for tax purposes
- Identifying debts that can be written off: Spotting bad debt and writing it off in time can reduce the tax payable
Brokers may want to consider scheduling a pre-June 30 review with clients to review these areas and answer questions before the tax time rush.
Conclusion
EOFY doesn’t have to be stressful. With early planning, the right tools, and support from brokers, it can become a time of financial opportunity for small business owners.
These easy EOFY tax tips—from bad debt write-offs to inventory reviews— can potentially help clients take control and cut costs.
However, it’s typically better to sort out any government-mandated requirements before June 30.
And if extra funding is part of the plan, Lumi has your back with fast, flexible loan options, making implementing EOFY strategies simple and effective. Whether clients need a flexible line of credit or fast approval loans, you can help them act quickly and strategically.
Contact our team to explore fast funding solutions for your SME clients.
