Nailing Tax Time with Isuzu and Trident Financial

With the help of our good friends at Melbourne-based, Trident Financial Group, we’ve put together some headline hints and tips to help you deal with tax time and put your business and personal finances in a strong position for FY25-26.     

Trident Partner and Business & Tax Advisory specialist, Haydn Stewart, says making superannuation contributions, prepaying expenses and tackling debt can help you prepare for the new financial year…  

There’s no doubt small to medium sized businesses are the engine room of the Australian economy and vital participants in the tax and super system.   

Be it road transport, logistics or trade and construction, during the 2022–23 income year, this world-beating cohort contributed more than $909.3 billion to the Australian economy and employed more than 7 million people.   

Having a greater understanding of your options at tax time can go a long way to helping you not only prepare, but also re-position your business for the next financial year.   

Haydn Stewart from Trident Financial Group 

Make more deductible contributions to super  

Now could be an ideal time to start making either additional personal concessional contributions or employee salary sacrificed contributions to your superannuation.   

As well as topping-up your super, making additional contributions may help you reduce your overall tax bill. If you are under 75 years of age, you may claim a tax deduction for personal contributions.   

It’s worth noting that these contributions are held against a concessional contributions cap, which is set out by the Australian Taxation Office (ATO) as well as additional requirements for those between 70 - 74 years old.  

Manage your investments  

If you're thinking of selling any investments, such as shares or managed funds, then the timing of the sale can have significant implications on the tax you may have to pay in any given year.  

Any gain on your investment becomes taxable income and, depending on the size of the gain, may put you up into a higher tax bracket.  

That said, if you're planning to sell a non-performing investment, then doing so before 30 June might mean you’re able to use any capital loss to reduce the tax on any other capital gains.  

Prepay expenses  

You should also consider prepaying tax-deductible expenses for the next financial year. You may be able to claim a deduction for certain expenses in the year that you incurred the expense. For further information in relation to prepaid expenses please refer to the ATO.  

Tackle debt  

If you have personal debt, paying it and avoiding new debt could be an important action ahead of the new financial year. Consolidating your debt and committing to paying it off within a set period should be a strategy you adopt, prioritising your high interest, non-tax-deductible debt first.  

Many of us have a mortgage, so increasing the size and frequency of your repayments can also be beneficial.  Debt reduction strategies are best discussed with your broker or financial institution.   

On the prowl  

It really does pay to be prepared. The re-elected Albanese Government has committed further $1B over four years to expand the ATO's compliance activities. As a result, you can expect greater scrutiny than ever before, so make sure you’ve invested the time in advance and are fully prepared now!  

Instant Asset Write-Off (IAWO)  

First introduced in 2015 during a time of weak investment, the government’s instant asset write-off scheme has been extended until the end of June, meaning eligible businesses can immediately deduct the full cost of eligible assets under $20,000 if they are first used or installed by the close of June 2025.  

This has been an important measure for many transport-reliant businesses, because incentivises investment in profit-generating machinery and equipment.  

• It is worth investigating the scheme to identify which parts of your operations would become more profitable by investing in the right assets.  

• This could be updated trucks, forklifts, or other operational equipment or componentry that enables your business to run more efficiently and generate more profit.   

• Unless further extended, the threshold for small businesses to deduct the full cost of depreciating assets will revert to $1,000 from 1 July 2025.   

Staff obligations  

If you employ staff, make sure you’re prepared for your tax and super obligations. There are great Salary Packaging options available for your staff, particularly cars which helps you to add value for your employees and retain talent.  

As Sunday 30 June 2025 approaches, stay up to date with your employer reporting obligations and these upcoming key dates:  

Fringe benefits tax (FBT)   

• The FBT year runs from April 1 to March 31. Consider if you provided staff benefits on top of salary and wages during the FBT year.   

• The due date to lodge your FBT return and pay any FBT owed is Wednesday 21 May. However, if you already have a tax professional that lodges electronically on your behalf, you have until Wednesday June 25.  

Super guarantee rate increase   

• From Tuesday July 1 the super guaranteed rate (SG) will increase to 12 per cent of your employees’, or eligible contractors’, ordinary time earnings.  

• Make sure you pay your SG contributions for the April to June quarter by Monday July 28 in full, on time and to the right fund.  

Single touch payroll reporting  

• Remember to make single touch payroll (STP) finalisation declarations by Monday July 14, for all employees you’ve paid during the financial year. Accurate reporting means your employees have the right information to lodge their income tax returns.  

Motor Vehicle Expenses  

As a business owner, you can claim a tax deduction for expenses for motor vehicles. This applies to cars and a range of other vehicles used in the operation of your business.   

Expenses such as insurance premiums, fuel, registration, depreciation, as well as servicing and repairs can all be claimed.   

The ‘car limit’ has also increased to $69,674 for the 2024-25 income year, which is the cost you can use to work out the depreciation of passenger vehicles that are designed to carry a load of less than one tonne and fewer than 9 passengers.   

Get help  

Tax time can be stressful and whilst necessary, it's certainly not everyone’s strong suit, so it can be extremely beneficial to simply ask for professional help.  

As a business owner, you don’t have to bear the entire load of your tax obligations and business finances in general. There’s a range of professional services available to small to medium sized businesses, specifically trained to work with you to get the best results possible at tax time and throughout your business journey.   

Adapt, change and above all, work smart!  

Note: The above information comprises general financial and economic information only and is not intended as professional advice. Isuzu Australia Limited urges readers to obtain independent financial advice before making any decisions based on the information contained in this blog.