Many Australians ask the same question every year: “How can I lower my income tax?”
As a trusted tax accountant in Parramatta and Sydney, Champion Accountants has helped countless individuals and small business owners plan smarter, pay less tax, and build long-term financial stability.
It’s never too late to start organising your tax planning. With the right strategies, you can reduce your tax liabilities, minimise risks, and prepare confidently for your financial future.
We always recommend year-round tax planning — not just at tax time. Regularly forecasting your income and expenses can help you prepare for cash flow fluctuations and identify timely tax-saving opportunities.
Below are 11 practical strategies Australians can use to lower their taxes in 2025, improve savings, and strengthen financial security.
1. Claim All Eligible Business Deductions
You can claim a deduction for any expenses directly related to earning your assessable income. Make sure to keep valid records such as invoices or receipts, and ensure these expenses weren’t reimbursed by your employer. Common deductible expenses include work-related travel, uniforms, home office costs, and business tools or software.
2. Donate to Charitable Organisations
Donations to registered charities with Deductible Gift Recipient (DGR) status may be tax-deductible. To qualify, the donation must be voluntary, with no material benefit received in return. You can claim deductions for monetary gifts or property contributions.
3. Use a Mortgage Offset Account
A mortgage offset account allows you to reduce the interest payable on your home loan by offsetting it against the balance in your savings account. This can lower non-deductible interest payments, saving you thousands over time while improving your financial efficiency.
4. Defer Income to the Next Financial Year
If possible, delay receiving some of your income until after 30 June 2025. This will reduce your taxable income for the current financial year, potentially lowering the tax you owe.
5. Prepay Deductible Expenses
Prepaying up to 12 months of tax-deductible expenses can bring forward a tax deduction. Examples include prepaying interest on investment loans or business-related insurances. This tactic can be particularly useful in high-income years.
6. Consider Salary Sacrificing
Salary sacrifice arrangements let you exchange part of your pre-tax salary for non-cash benefits such as:
- Extra superannuation contributions
- Car leasing or novated leases
- Laptops, tablets, or other work-related devices
- Childcare or education costs
This strategy lowers your taxable income while helping you build wealth in a structured way.
7. Make Spouse Super Contributions
If your spouse earns a lower income, you may be eligible for a tax offset of up to $540 by contributing to their superannuation. This not only supports your partner’s retirement savings but also reduces your overall tax bill.
8. Claim Personal Superannuation Contributions
You can also make personal deductible super contributions from your own income. Eligible income sources include wages, business profits, investment earnings, or trust distributions. Remember that contributions claimed as deductions are taxed at 15% within the fund, which is usually lower than your marginal tax rate.
9. Review and Organise Your Investments
Before making or selling investments, seek guidance from a qualified Sydney tax accountant. Consider both the short- and long-term impacts — saving a little tax now isn’t worth it if it means losing your investment capital later.
If you have investments that have declined in value, you can sell them to offset capital gains from other assets — a strategy called tax-loss harvesting. Be mindful, though, that transaction fees can reduce the overall benefit.
10. Take Advantage of the Private Health Insurance Rebate
Australians with an eligible private health insurance policy may qualify for a tax rebate if they earn below certain thresholds:
- Under $158,000 (single)
- Under $316,000 (family)
You can claim the rebate through your health fund (as a reduced premium) or in your annual tax return.
11. Utilise Capital Gains Tax (CGT) Discounts
When you sell assets such as property or shares acquired after 20 September 1985, you may be liable for Capital Gains Tax (CGT).
If you’ve held the asset for more than 12 months, individuals are entitled to a 50% CGT discount, while superannuation funds receive a 33.3% discount. This means only part of the gain is added to your taxable income.
Plan Ahead with Champion Accountants
If you’ve been wondering “How can I lower my tax bill in Australia?” — the answer lies in proactive planning.
At Champion Accountants, our experienced tax agents in Parramatta and Sydney can help you identify legitimate deductions, create tailored strategies, and ensure compliance with the Australian Taxation Office (ATO).
Don’t wait until the end of the financial year — start planning now to make 2025 your most tax-efficient year yet.
📞 Contact Champion Accountants today to schedule a confidential tax consultation and take control of your financial future.