As the end of the financial year approaches, now is the perfect time for small business owners in Australia to take stock, get their books in order, and explore every available opportunity to legally reduce their tax bill.
Whether you’re a sole trader, run a company with employees, or somewhere in between, understanding the key tax-saving tips for small business owners can make a real difference to your bottom line. This guide covers proven strategies, current concessions, and overlooked deductions that could help you save more this tax time.
1. Use the Instant Asset Write-Off Before 30 June
One of the most widely used and powerful tax minimisation strategies for small businesses is the instant asset write-off. This allows eligible businesses to claim an immediate tax deduction for the business portion of the cost of assets, such as computers, vehicles, tools, and office furniture.
As of the 2023–24 financial year, the temporary full expensing measures introduced during COVID have ended. However, the instant asset write-off remains in place for assets under $20,000 — provided they’re first used or installed ready for use by 30 June 2025. This can apply to multiple assets under the threshold.
Source: Australian Taxation Office (ATO) — Instant asset write-off
2. Prepay Eligible Expenses
Another smart way to save at tax time is to prepay eligible expenses for the next financial year. If your business is classified as a small business entity (SBE), you can claim a deduction this year for prepaid expenses like:
- Rent on business premises
- Insurance premiums
- Software subscriptions
- Advertising and marketing services
This strategy improves cash flow by reducing taxable income now, which is ideal if you’re expecting a higher income this year or want to reduce your tax bill upfront.
3. Review Your Business Structure
If you’re a small business owner operating as a sole trader or partnership, now may be the time to review whether your business structure is still working in your favour. Different structures have different tax obligations, and transitioning to a company or trust might open up access to lower tax rates, income splitting, or capital gains tax (CGT) concessions.
⚠️ This is not something to rush. Get advice from a qualified tax professional to ensure you understand the tax and legal implications before making changes.
4. Claim All Legitimate Deductions
Many small business owners miss out on tax deductions simply because they don’t know what they’re entitled to claim. Beyond obvious operating costs, consider:
- A portion of home expenses (if working from home), such as electricity, internet, and rent.
- Motor vehicle expenses for business-related travel.
- Professional development and training.
- Bank fees, accounting software, and stationery.
- Wages, superannuation, and benefits for your employees.
- Digital services such as web hosting, email hosting, SSL certificates, and domain name registrations — all claimable when used for business purposes.
If you’re using services from providers like VentraIP to run or promote your business online, those expenses are typically tax-deductible. Make sure to retain all invoices and receipts to support your claim.
The ATO expects thorough records for all claims, so keeping detailed documentation is essential.
5. Consider Timing Your Income and Invoices
If you invoice work in late June but don’t receive payment until July, the income is typically taxed in the next financial year. While you must be careful not to defer income unreasonably, timing strategies can help manage cash flow and reduce this year’s taxable income.
For example, if your business is cash-based, holding off on invoicing or receiving payments until July can extend the income into the next financial year.
6. Leverage Tax Concessions for Small Businesses
The ATO offers a range of tax concessions specifically for small businesses, including:
- Small Business Income Tax Offset (for unincorporated businesses)
- Simplified depreciation rules
- CGT concessions when selling business assets
- Immediate deductions for professional start-up costs
Checking your eligibility and applying the correct concessions could result in significant tax savings.
Source: ATO — Small business tax concessions
7. Talk to a Tax Professional Before 30 June
EOFY isn’t just about compliance, it’s also your best chance to implement tax planning strategies that set your business up for the year ahead. An experienced accountant or tax professional can provide tailored advice, spot opportunities you might miss, and ensure you’re meeting all obligations.
Engaging with an expert now, rather than in July, gives you time to act before the financial year ends.
8. MYOB Offer: Exclusive Tools to Simplify EOFY Business Admin
EOFY can be stressful, especially when managing receipts, chasing invoices, or tracking expenses. That’s why we’ve partnered with MYOB to offer exclusive access to Solo by MYOB and MYOB Business at significantly reduced rates.
These tools are purpose-built for sole traders, freelancers, and small business owners in Australia, helping simplify admin, manage payments, and streamline accounting. As part of this partnership:
- Solo by MYOB is available to VentraIP customers for just $6 for the first 12 months.
- MYOB Business users receive six months free when they pay for one month (Lite or Pro plan).
These deals can support better financial visibility during tax season, potentially reducing your tax prep time and cost.
Final Thoughts: Make EOFY Work for You and Your Business
For many businesses in Australia, the end of the financial year is the busiest time of year. But it’s also one of the most critical windows to optimise your tax position, strengthen your financial planning, and ensure your company makes the most of every available deduction.
With some foresight and the right advice, these tax-saving tips for small business owners could significantly reduce your tax burden and help your business grow stronger into next year.
If you’re planning to invest in new digital tools, software, or services, don’t forget to check out our EOFY Sale; it might be the perfect time to claim and save.
