Get Ready for 2025 Tax Planning
As we get closer to 2025, make time to tweak your plan and take full advantage of savings opportunities. Tax planning is not just about compliance. It’s having a financial plan in place to achieve your goals and tax-efficient outcomes.
Here’s a guide to help you get ready for the upcoming tax season.
1. Know the Updated Tax Rates
The 2024-2025 tax rates have changed, offering more savings opportunities for many taxpayers:
The 16% tax rate now applies up to $45,000 (down from 19%).
The 30% tax rate applies from $45,001 to $135,000 (down from 32.5%).
The threshold for the 37% rate has increased to $135,000.
These changes can significantly impact your tax obligations, so update your calculations accordingly.
2. Maximise Deductions
Review all eligible deductions for the year. Common ones include work-related expenses, donations, and business costs. Don’t forget:
Property Investors: Claim depreciation and negative gearing benefits.
Small Business Owners: Deduct equipment purchases under the instant asset write-off.
Keeping detailed records will ensure you don’t miss out.
3. Plan Superannuation Contributions
Consider making additional contributions to your super fund. Contributions can reduce your taxable income, and the earlier you plan, the more time your investment has to grow.
4. Review Your Investments
Tax planning isn’t just about deductions – it’s also about optimising your investment portfolio. Consider how capital gains tax (CGT) applies if you plan to sell shares, property, or other assets. Timing your sales strategically can reduce your CGT liability.
5. Stay Ahead with BAS Lodgements
For business owners, keeping on top of their BAS lodgements ensures smooth cash flow and compliance with GST obligations. Timely lodgements can help avoid penalties and interest charges.
6. Engage in Tax-effective Giving
If philanthropy is part of your values, consider donating to registered charities. These donations are tax-deductible and can also reduce your taxable income for 2025.
Why Tax Planning is Essential
Without a proactive tax strategy, you may find yourself paying more than necessary or missing opportunities for growth. Regularly reviewing your financial situation and adapting to changes ensures you’re always ahead.
How Tax Accounting Adelaide Can Help
Our experienced team can help you navigate the 2025 tax changes, optimise your deductions, and create a personalised strategy to save money.
Call Tax Accounting Adelaide today on 08 8337 4460 to book your tax planning session!
