2025 Tax Planning tips for Healthcare Practices

Now is the time to focus on our 2025 tax planning. There is still time, as we have two weeks remaining in the financial year, but it's crucial to plan and take action this week.

Watch my latest 2025 tax planning tips for healthcare practices to help you minimise tax before the end of the financial year.

Planning ahead and taking proactive actions is crucial for optimising tax savings. Here are some key takeaways and action items

• Depreciation: Review new equipment purchases and determine if any assets require write-downs. Ensure that equipment valued at over $20,000 is properly depreciated using the appropriate method, such as the written-down value or the small business pool.

• Stocktake: Conduct a thorough stocktake by 30th June to identify and write off any obsolete or out-of-date stock. This will not only help with tax deductions but also provide accurate information for insurance purposes.

• Payables: Ensure all payables are recorded in your accounting system or on a list by 30th June. These can be valuable for deductions and should be reconciled with supplier statements.

• Prepayments: Consider prepaying expenses like interest, rent, consumables, and training courses before 30th June to potentially increase deductions for the current financial year.

• Superannuation: Pay your June super contributions before the deadline to ensure they are deductible. Keep in mind the contribution limits and any catch-up contributions available.

• Trust Resolutions: Resolve profit distribution decisions for trust entities before 30th June. Be mindful of legal requirements and limitations regarding trust distributions.

• Personal Services Income: Review personal services income arrangements to ensure compliance with tax regulations. Stay informed about any changes or updates in this area.

• Service Agreements: Regularly review service agreements and rates to align with current operations and regulatory requirements. Seek advice as needed to ensure compliance.

• Compliance and Audit: Stay vigilant about compliance requirements and potential audits. Be prepared for increased audit activities and changes in tax laws that may impact your business.

Remember, effective tax planning requires diligent record-keeping, timely actions, and staying informed about regulatory changes. If you need assistance or advice, please reach out. Good luck with your tax planning efforts for 2025!