Maximising Year-End Deductions: A Guide to Super Contributions, Charitable Donations, and More

As the financial year draws to a close, businesses—whether operating locally or abroad—face a crucial opportunity to optimise their tax position. Maximising year-end deductions is essential to reducing taxable income and improving cash flow for the upcoming year. At World Wide Advisory, we understand the complexities faced by Aussie expats and offshore businesses navigating the Australian tax landscape.

This guide highlights key strategies involving super contributions, charitable donations, and deductible business expenses to help you close the 2024–25 financial year efficiently.

1. Super Contributions: Boost Your Savings and Tax Benefits

Superannuation contributions remain one of the most effective ways to reduce taxable income while securing your financial future.

Concessional Contributions

• These are pre-tax contributions, including employer contributions and salary sacrifice.

• The cap for 2024-25 is $27,500.

• Contributions within this cap are taxed at 15% rather than your marginal tax rate, offering immediate tax savings.

• If you’re an employer or self-employed, consider making additional concessional contributions before June 30 to maximise deductions.

Non-Concessional Contributions

• Made from after-tax income, these contributions aren’t tax deductible but can help grow your super balance.

• Useful for those planning their retirement or aiming to reduce the impact of future tax liabilities.

Important for Expats

• If you are ceasing Australian tax residency, understanding your access to super and timing contributions becomes critical.

• Contributions must comply with Australian residency rules to be tax effective.

2. Charitable Donations: Give Back and Claim Deductions

Charitable donations are fully deductible if made to registered Deductible Gift Recipients (DGRs).

• Make donations before June 30 to claim the deduction in the current financial year.

• Keep all receipts and donation statements for ATO verification.

• Donations can also include gifts of property, shares, or money.

• For expats, donations to Australian charities may still be claimable if you continue to lodge Australian tax returns.

3. Business Expenses: Capture All Eligible Deductions

Every legitimate business expense reduces taxable income. Review your accounts carefully to ensure nothing is overlooked:

• Office supplies, utilities, and rent for business premises

• Depreciation on equipment and vehicles – consider if any assets can be fully depreciated this year under instant asset write-off rules

• Professional fees such as accounting, legal advise, and consulting

• Travel and vehicle expenses related to business activities

• Employee-related expenses, including superannuation and payroll costs

For Offshore Businesses Entering Australia:

• Ensure compliance with GST obligations and capture all deductible expenses.

• Consider transfer pricing rules to document intercompany charges correctly.

• Understand the impact of withholding tax on payments to foreign entities to avoid penalties.

4. Planning Ahead: Avoiding Common Pitfalls

• Don’t exceed contribution caps for super or risk excess tax penalties.

• Separate capital expenses from deductible repairs and operational costs.

• Keep clear, accurate records — the ATO increasingly uses data matching and audits to verify claims.

• For expats, be mindful of foreign income reporting and how it interacts with Australian deductions.

Year-end tax planning is an invaluable step in reducing your business’s tax liability and positioning for a strong financial year ahead. Whether you are an Aussie expat navigating residency issues or an offshore business expanding into Australia, taking advantage of concessional super contributions, charitable donations, and a thorough review of deductible expenses can significantly impact your bottom line.

Need expert guidance?

Contact World Wide Advisory today for tailored advise on maximising your year-end deductions and navigating the complexities of Australian tax law.

📞 Call us at +61 7 3180 1684

📧 Email: contact@worldwideadvisory.au

Let’s work together to optimise your tax position before the financial year closes.