Your 2025 Game Plan

As the end of the financial year approaches, business owners have a critical opportunity to save on taxes and prepare for upcoming changes. However, recent updates to tax laws, particularly those affecting family trusts, require careful attention to navigate. Below, we outline how you can prepare for 30 June 2025 with a practical game plan designed to help you reduce tax obligations and manage potential risks.

In this blog post, we will explore your accounting game plan for 2025.

Recent Tax Law Changes  

Over the past three years, significant changes have reshaped the tax landscape, including new rules for family trusts:

• Distributions from Family Trusts: Tax rulings, particularly concerning Section 100A of the Income Tax Assessment Act, may limit how trust profits are distributed to family members.
• Trustee Challenges: A court recently overturned a trustee’s distribution decision after complaints from beneficiaries.
• Professional Income Allocation: New ATO guidance restricts how professionals allocate income within family groups.
• Focus on Personal Services Income (PSI): This renewed emphasis limits how income can be spread among family members.

With a Federal Budget in March 2025 and a Federal Election expected in May, further changes to tax and superannuation laws may emerge. These developments highlight the importance of proactive tax planning to avoid unnecessary stress.

Family Trust Management 

Effective management of family trusts is essential to prevent unexpected tax liabilities:

1. Trust Deed Review: By March/April 2025, we recommend reviewing your trust deed to identify if amendments are needed, such as excluding specific beneficiaries who may challenge distributions.
2. Trust Distribution Resolutions: In June 2025, we will prepare resolutions for your trusts. These must be signed before 30 June to avoid a 47% tax rate on trust profits.
3. Beneficiary Payment Instructions: To comply with tax regulations, beneficiaries will need to sign payment instructions in early July.

Tax Planning and Payments

To minimise tax obligations, consider these key steps:

• Tax Planning Review: Following the Federal Budget, we will develop strategies to optimise tax savings and distribute profits effectively.

TaxFlow Projection Plan: In July 2025, we can provide a detailed projection of your tax obligations over the next 18 months, enabling better cashflow planning.

Fringe Benefits Tax (FBT)

Lodging your FBT return, even if no FBT is payable, limits the ATO’s audit window to three years. In April/May 2025, we will assist with completing FBT returns and integrating this information into Single Touch Payroll (STP) year-end finalisation.

Next Steps

We offer flexible payment options through QuickFee, allowing you to spread costs over 4–12 months. 

At Rubiix Business Accountants, we’re here to support you every step of the way. Contact us with any questions, and let’s get started on your 30 June 2025 game plan.