Based in Sydney, Raja is a law student enrolled in a Bachelor of Laws and Bachelor of Communications (Writing and Publishing) at the University of Technology Sydney. He is passionate about transferring knowledge in relation to businesses, legal advice and marketing direction. Raja has experience working in immigration law and is driven by the writing, editing and publishing process of content.
As the financial year wraps up, it’s the perfect opportunity to step out of the day-to-day grind and set your business up for future success.
During the end of financial year (EOFY), the insights and guidance from a lawyer can prove invaluable. They can help interpret upcoming legislative changes, address compliance matters, and assist with maximising returns. As we edge closer to wrapping up FY25, here are 10 crucial questions to ask your lawyer, ensuring your business is well-prepared and legally resilient for the new financial year.
Table of Contents
1. What Impact Will Recent Legal Changes Have on my Business?
This month, sweeping amendments to Australia’s industrial relations landscape are being ushered in due to the passing of the Closing Loopholes amendments over the last financial year. These changes come into force over staggered dates.
- Criminalising underpayment: As of 1 January 2025, underpayment by employees became a criminal offence incurring imprisonment and fines for individuals and fines for companies. From 1 July 2024, unions will also have an expanded right of entry for suspected underpayment.
- The government has legislated payday super, which requires employers to pay super at the same time as salary and wages. While not mandatory until 2026, it’s crucial to prepare your systems for compliance. Start reviewing payroll systems to ensure alignment before the mandatory deadline.
These changes could significantly impact your business operations, making it essential to consult with your legal counsel to understand their implications and ensure you’re adequately prepared. Read about additional details of the changes here.
2. Is Now The Right Time to Change Business Structures?
The end of the financial year provides an ideal opportunity to reassess your business structure. It could be the perfect time to register a company if your current business structure’s drawbacks – like higher individual tax rates and financial liability – outweigh its benefits.
3. What Can I Claim?
As the financial year wraps up, you should consider how to maximise your deductions. Before 30 June, you should consider whether you are eligible to claim the Instant Asset Write-Off, which allows eligible businesses to claim an immediate deduction for new assets.
Various products and services are tax-deductible, including fees for accounting, bookkeeping, and legal services. You could even claim a deduction for our legal plans.
🎯 Can You Claim It?
EOFY 2025 Tax Deduction Quiz - Test your deduction knowledge and see how well you know the ATO rules!
4. What Does the Budget Mean for my Business?
The recently released 2024 Federal Budget says a lot about the Government’s plans for Australia’s economic recovery. Notably, the priority is to get Australians in jobs and ease the burden on businesses. Some announcements in the Budget you might want to ask your lawyer about are:
- $22.7 billion of long-term spending on clean energy and strategic industries as part of the Future Made in Australia plan
- An estimated one million eligible small businesses to have $325 deducted from their power bills
- Australian Small Business and Family Enterprise Ombudsman: The Ombudsman will receive $2.6 million in funding over four years to support unrepresented small businesses in using alternative dispute resolution to navigate business-to-business disputes
- eInvoicing network: The Australian Taxation Office will receive $23.3 million in funding to continue operating the secure eInvoicing network, which aims to disrupt payment redirection scams and increase productivity for SMEs
- Small business helplines: The Government will provide $10.8 million over two years to extend the Small Business Debt Helpline, which offers financial counselling, and the NewAccess for Small Business Owners program, which offers mental health support for small business owners
5. How Can I Recover Money Owed to my Business?
Having debts owed to you can be frustrating, especially when you’re trying to balance the books for EOFY. Your lawyer can advise on the correct process to follow to recover a debt, from issuing a letter of demand to lodging a claim in Court.
6. How do I Manage Employee Pay Increases?
The end of the financial year is a common time for employees to seek salary increases. Consult with your legal team to devise a strategy that will either allow you to meet their request or suggest alternative compensations, ensuring you remain competitive in the upcoming financial year.
7. What Tax Errors Will the ATO be Cracking Down on This Year?
The ATO annually discloses common tax errors they will not accept. Familiarise yourself with these, as well as any key changes to tax policies, to avoid potential complications. This year, the ATO is expected to concentrate on:
- Incorrectly claiming work-related expenses
- Inflating claims for rental properties
- Failing to include all income when lodging
Consult with your legal counsel to ensure you’re compliant with all regulations and minimize the risk of misunderstandings with the ATO.
8. How Far Ahead Should I Plan?
Planning ahead is always smart, but you don’t want to plan so far into the future that you can’t adapt to changing circumstances. Your lawyer can advise on how far ahead you should plan your budgets and account for expenses such as tax, salaries and general administration.
9. What’s the Best Way to Maintain my Records?
Accurate record keeping goes a long way when it comes to EOFY. Your lawyer can provide some recommendations on how your books should look all year round, and how you can maintain them.
Looking for a way to manage all of your legal documents in one place? Have a look at our legal plans to access and manage your documents at any time, from any device.
10. Are There Any Changes to Tax Laws I Should be Aware of?
Tax laws tend to change fairly frequently, particularly in light of the pandemic. It’s worth checking with your lawyer whether there are any updates that will impact your business.
Want more?
Sign up for our newsletter and be the first to find hand-picked articles on topics that we believe are crucial to successfully scale your unique small business.
