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WHAT TO CONSIDER WHEN TAX PLANNING FOR EOFY
With the end of the financial year looming, it’s time to think about your tax planning options before 30 June 2025 hits.
We’ve curated a list of top things to focus on when organising your tax affairs for the 2025 year-end, applicable to businesses, primary producers, trusts and individuals.
Division 7A Loans
Company loan to shareholders
If you are a shareholder or a shareholder’s associate and you borrowed money from a company for personal use during the 2025 financial year, these loans need to be repaid or placed on a complying loan agreement by the lodgement due date for the 2025 company tax return. If not, there is a risk that the loan will potentially be treated as a deemed unfranked dividend and taxed in the hands of the shareholder or the shareholder's associate.
In respect to existing Division 7A loans, please ensure the minimum annual loan repayment is received by the company prior to 30 June 2025.
Benchmark interest rate increase
In the 2025 financial year there has been an increase in the minimum interest rate that must be applied to loans for them to remain Division 7A compliant.
The rate for the 2025 financial year is 8.77% (up from 8.27% in FY2024).
As a result of this increase, the minimum repayment required on loans will be higher than would have been required in prior years to account for the increased interest charge. Liaise with your RSM advisor prior to year-end to discuss the best strategy to reduce additional interest charges.
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Whether you are looking to maximise deductions, manage capital gains, explore superannuation strategies, or leverage any other tax-saving opportunities, our dedicated team is here to guide you every step of the way. We encourage you to explore the contents of this webpage and reach out if you have any further questions.
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