The Calm Before the (Tax Time) Storm?

Introduction

The end of financial year (EOFY) is fast approaching—and while things may seem quiet for now, this could be the calm before the storm. For businesses, investors, and individuals alike, EOFY is a time of significant financial reflection, restructuring, and readiness.

EOFY 2025 comes with its own set of challenges: tighter ATO compliance, new taxes on superannuation balances over $3 million, and increased digital surveillance. At Renown Lending, we understand the pressures this time of year brings—and how strategic financial preparation can make all the difference.

Why EOFY 2025 Matters More Than Ever

1. New $3 Million Super Tax Takes Effect

From 1 July 2025, superannuation balances exceeding $3 million will be hit with an additional 15% tax on earnings—including unrealised capital gains. This controversial move has left many investors scrambling to understand asset valuations and restructure their holdings.

2. ATO Cracks Down on SMSFs

The ATO is watching for manipulated asset values and outdated figures in SMSFs. Trustees who fail to provide valid valuations are likely to face audits and penalties. Getting professional advice and accurate documentation is essential.

3. Tighter Compliance with Digital Data Matching

The ATO is leveraging more real-time data than ever. E-invoicing, STP Phase 2, and bank transaction monitoring mean errors—or attempts to fly under the radar—are less likely to go unnoticed.

Small Business EOFY Checklist

As a business owner, it’s vital to get ahead before 30 June. Here’s where to start:

• Maximise deductions by prepaying expenses or upgrading equipment using instant asset write-offs (check current thresholds).

• Reconcile accounts and clear liabilities, especially outstanding ATO debts.

• Meet with your accountant now to confirm BAS, GST, PAYG, and super obligations.

• Forecast your FY26 goals and assess funding needs.

Need short-term finance to manage EOFY pressures? Renown Lending offers fast, property-backed solutions with competitive rates and flexible terms.

What Employees and Investors Should Do

Whether you're on a salary or managing a portfolio, consider these EOFY strategies:

• Claim work-from-home deductions using the fixed rate or actual method—ensure records are detailed and current.

• Top up your super: The concessional cap is $27,500 (including employer contributions), and unused cap amounts from previous years can be carried forward.

• Offset capital gains by strategically realising losses—just avoid artificial transactions that may attract ATO scrutiny.

EOFY Warnings from 2024: Don’t Repeat These Mistakes

Last year, Australians were caught off-guard by:

• Late Director ID registrations, resulting in penalties.

• Inaccurate or missing SMSF asset valuations.

• Failure to repay JobKeeper overpayments correctly.

Avoid the same pitfalls. Get organised early and seek professional advice.

ATO Watchlist for 2025

The ATO has flagged several priority areas:

• GST fraud and phoenix activity, especially in construction.

• Cryptocurrency income, including DeFi and NFT transactions.

• Employee vs contractor misclassification in gig economy roles.

If you fall into any of these categories, it’s time to ensure your reporting is accurate and compliant.

The Role of Non-Bank Lenders Like Renown Lending

At Renown Lending, we support businesses and investors with:

• Fast caveat loans

• Second mortgage funding

• Cash flow lending

• Construction finance

When traditional banks take too long, we step in—helping clients stay on top of tax obligations, refinance debts, or seize last-minute EOFY opportunities.

Preparing for FY26: Start Strong

EOFY isn’t the finish line—it’s the starting point for your next chapter. Take time to:

• Update your budget and cash flow forecasts

• Review your risk strategy

• Plan succession or restructure your business

• Consider trust or company structures for tax efficiency

Final Thoughts

EOFY 2025 doesn’t have to be stressful. With the right approach—and support from a trusted finance partner like Renown Lending—you can move from reactive to proactive, from overwhelmed to in control.

The storm is coming. Are you ready?

Need Funding Fast?

We offer private lending solutions to help you settle ATO debts, cover business costs, or take advantage of EOFY investments. Whether you're a broker, developer, or business owner, Renown Lending can help.

👉 Apply online today or speak to our team at renownlending.com