Business and Financial Resources 

If your company has advanced funds to a shareholder or related party, paid expenses or allowed a shareholder or other related party to use assets owned by the company, then this can be treated as a

taxable dividend. The regulators expect that top-up tax (if any applies) should be paid by shareholders at their marginal tax rate once they have access to these profits. When it comes to loans, a complying loan agreement can normally be used to prevent the full loan balance from being treated as a taxable dividend.

If you have any shareholder loan accounts from prior years that were placed under complying loan agreements, the minimum loan repayments need to be made by 30 June 2025. It may be necessary for the company to declare dividends before 30 June 2025 to make these loan repayments.

The tax rules in this area can be extraordinarily complex and can lead to some very harsh tax outcomes. It

is important to talk to us as soon as possible if you think your company has made payments or advanced

funds to shareholders or related parties.

Any expected directors’ fees and employee bonuses may be deductible for the 2024-25 financial year if you have ‘definitely committed’ to the payment of a quantified amount by 30 June 2025, even if the fee or bonus is paid to the employee or director after 30 June 2025.

You would generally be definitely committed to the payment by year-end if the directors pass a properly authorised resolution to make the payment by year-end. The employer should also notify the employee of their entitlement to the payment or bonus before year-end.

The accrued directors’ fees and bonuses need to be paid within a reasonable time period after year-end.

To be a bad debt, you need to have brought the income to account as assessable income and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June. If you don’t maintain a debtors’ ledger, a director’s minute confirming the write-off is a good idea.

Check to see if obsolete plant and equipment is sitting on your depreciation schedule. Rather than depreciating a small amount each year, if the plant has become obsolete, scrap it and write it off before 30 June. Small business entities can choose to pool their assets and claim one deduction for each pool.

This means you only have to do one calculation for the pool rather than for each asset.

To claim a deduction for the 2024-25 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.

Pay June quarter super contributions this financial year if you want to claim a tax deduction in the current year. The next quarterly superannuation guarantee payment is due on 28 July 2025. However, some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months.

Don’t forget yourself. Superannuation can be a great way to get tax relief and still build your personal wealth. Your personal or company sponsored contributions need to be received by the fund before 30 June to be deductible.

Where management fees are charged between related entities, make sure that the charges have been raised by 30 June. Where management charges are made, make sure they are commercially reasonable and documentation is in place to support the transactions. If any transactions are undertaken with international related parties, then the transfer pricing rules need to be considered and the ATO’s documentation expectations will be much greater. This is an area under increased scrutiny.

At Addition Accounting we believe it is essential for our clients to be able to pick up the phone and chat to our team. When you first call you will chat with out administrator, Fiona and she will direct you where needed. We can be the integral resource that helps you meet your operational and strategic objectives with counsel tailored to your unique situation.

At Addition Accounting, we understand how important it is for you and your business to feel heard and cared for by a local. Our team is located on the Sunshine Coast, with all accounting completed by by Katrina Moore-Porter who has been a qualified tax accountant of over 20 years. This enables us to really examine your business and look for ways to improve profitability, increase efficiency and make tax effective decisions.

At Addition accounting we take the hard work out of bookkeeping. We believe real time information at your finger tips is essential for a business to be a success. Call us today to talk about the many opportunities that are now available.

Yes, we offer a full bookkeeping service that can be accessed any time anywhere. This means you log in and look at how your business is doing on your mobile, tablet and computer at any time. All work is quoted upfront so there are no hidden costs.

If you lodge your BAS on a quarterly basis then it is due on the 28th day of the following month e.g. for the September quarter it is due on the 28th of October.

Monthly BAS is usually on the 21st day of the following month.

The due date for lodging and paying is displayed on your business activity statement (BAS). If the due date is on a weekend or public holiday, you can lodge your form and pay on the next business day.

You must register for GST if:

- your business or enterprise has a GST turnover (gross income minus GST) of $75 000 or more

- your non-profit organisation has a GST turnover of $150 000 per year or more

- you provide taxi or limousine travel for passengers in exchange for a fare as part of your business regardless of your GST turnover - this applies to both owner drivers and if you lease or rent a taxi.

- You want to claim fuel tax credits for your business or enterprise.

If your business or enterprise doesn’t fit into one of the above categories, registering for GST is optional. However, if you choose to register, you generally must stay registered for at least 12 months.