How to Get the Most Out of Your 2025 Tax Return: 10 Pro Tips
With the end of the 2024–2025 financial year approaching fast, now is the perfect time to review your financial position and implement strategies that can minimise your tax liability and maximise your benefits. Whether you’re a business owner, sole trader or individual taxpayer, proactive planning can make a big difference, in this article we explain how to get the most out of your 2025 tax return.
Here are 10 effective and up-to-date tax planning strategies to consider before 30 June 2025:
1. Maximise Your Super Contributions
From 1 July 2025, the concessional contribution cap will increase to $30,000 per year. Contributions made under this cap (e.g. via salary sacrifice or personal deductible contributions) reduce your taxable income and may lower your overall tax bill.
Tip: If you haven’t used your full cap in previous years and your super balance is under $500,000, you may be eligible to carry forward unused amounts (catch-up concessional contributions).
2. Claim All Work-Related Deductions
Make sure you’re claiming all eligible deductions, such as:
Work-from-home expenses (70 cents/hour fixed rate or actual method)
Self-education courses related to your profession
Tools and equipment used for your job
Professional memberships and subscriptions
Note: Keep detailed receipts and records to substantiate your claims in case of an ATO review.
3. Strategically Time Capital Gains
If you’ve made capital gains this year (from selling shares, property, or other assets), the way you time your sales can have a big tax impact.
Holding an asset for more than 12 months makes you eligible for the 50% Capital Gains Tax (CGT) discount as an individual.
Consider offsetting gains with capital losses or deferring sales until the next financial year if appropriate.
4. Leverage Negative Gearing
If you own an investment property where your rental expenses exceed your rental income, the resulting loss can be used to offset your other taxable income — reducing your overall tax liability.
However, negative gearing involves long-term risks and should be considered as part of your broader investment strategy.
5. Take Advantage of Franking Credits
If you invest in Australian shares that pay fully franked dividends, you may be entitled to franking credits. These credits can offset your tax or even result in a refund if your tax liability is low.
This strategy is especially effective for retirees and low-income earners with dividend-heavy portfolios.
6. Use Tax-Effective Investment Funds
Certain managed funds or ETFs (Exchange-Traded Funds) distribute income in ways that may reduce your immediate tax burden. Growth-oriented funds tend to defer tax liabilities by minimising distributions.
Note: Always seek financial advice before choosing investment vehicles for tax outcomes.
7. Review Your Business Structure
As your business grows, it’s important to regularly assess whether your current structure is still the most tax-effective. Sole trader, partnership, trust, or company structures each have distinct tax implications.
A restructure could potentially reduce tax, protect assets, and simplify succession planning.
8. Take Advantage of Temporary Incentives
From time to time, the ATO introduces temporary tax incentives such as instant asset write-offs or accelerated depreciation rules.
Make sure you’re aware of what’s currently available for FY25. These incentives may allow you to fully deduct eligible business assets immediately, rather than depreciating them over several years.
9. Bring Forward Expenses and Defer Income
For small businesses operating on a cash basis, you may consider:
Prepaying expenses (e.g., insurance, rent, subscriptions)
Defer income to after 1 July (if it makes financial sense)
Note: This method helps shift income into the next financial year while bringing deductions forward, reducing your current tax bill.
10. Engage with a Trusted Tax Professional
Tax laws in Australia change frequently. Working with a registered tax agent or accountant ensures you’re not only compliant but also making the most of any available opportunities.
Taking Control of Your Tax Position
Strategic tax planning isn’t about last-minute scrambling. It’s about taking control — identifying opportunities, correcting inefficiencies, and making decisions that support your long-term goals.
Whether you’re an individual lodging your return or a business owner preparing for lodgements, now is the time to act.
At Inform Business Accounting, we provide tailored advice for individuals, sole traders and businesses who want to close the financial year strong and well-prepared.
Would you like to know more?
For Expert Guidance for Your Business – Contact us at, enquiries@informba.com or call 03 9399 3769 for professional advice on business advisory, consulting, tax and accounting. Or alternatively, complete the contact form at the link below:
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