As we come to the end of the 2025 financial year, it is important for businesses to plan for upcoming obligations and consider any tax planning opportunities before 30 June.
Tax planning can assist you with the following:
- Maximising tax efficiency
- Reducing the likelihood of unexpected tax liabilities
- Allowing for tax liability funding options to be proactively considered
- Allowing for potential tax issues to be addressed before they become a problem
- Capitalising on tax incentives
- Capitalising on opportunities to grow personal wealth
- Maintaining compliance with rules around trust distribution resolutions and dividend resolutions where necessary
Click the link below to download our Tax Planning Checklist
Responsibilities and Considerations
Complete Trustee Resolutions by 30 June
Each financial year, trustees must determine which beneficiaries are entitled to the trust income. The resolution confirming the distributions should be completed and signed prior to 30 June.
Review Trust Deed Regularly
Understand who the eligible beneficiaries are and the types of income that can be distributed according to the Trust Deed.
Upcoming PAYG Instalments
Plan for any changes in PAYG instalments for the remainder of current year and new financial year. Consider variation of instalments where not in line with expected tax position.
Section 100A Compliance
Ensure that the trust distribution entitlements are valid and that each distribution creates a legal entitlement for the beneficiary.
Division 7A Loans
Ensure appropriate interest charged on complying Division 7A loans. If minimum repayments on loans are being paid in cash, flow these funds to the company. If repayments made via dividends, dividend documentation should be prepared. Consider the impact of any required dividends on overall tax position.
ATO Interest – Non-deductible from 1 July 2025
Consider the cost of outstanding debt with the ATO. Previously, interest charged by the ATO on late payment of tax obligations incurred interest which could be claimed as a deduction. The deduction no longer applies to interest incurred on or after 1 July 2025.
Check in with your Financial Adviser
Consider checking in with your financial adviser in relation to any proposed superannuation contributions, review of personal insurances, or other items that may impact your tax affairs.
If you would like to book a Tax Planning meeting, please contact your Harris Black team member.