When it comes to real estate, tax planning and tax minimisation can get a little more complex than your average business. With large commissions, unique costs, and the ATO keeping a close eye on things like super payments, it pays to have a solid tax strategy in place.

To keep you in the loop, I caught up with Director Craig Harrison from our Real Estate team to talk through his go-to tactics for real estate businesses wanting to minimise tax heading into EOFY25. Watch our full conversation below.

 

 

1. match bonuses + commission payments to income

John: What’s one of the top things you talk to real estate agents about when reviewing their tax position?

Craig: One of the biggest ones is understanding commissions and bonuses. In real estate, you often have large income months just before EOFY. Your biggest cost is usually people – so it’s about ensuring any bonuses or commissions payable are recognised and matched against that income.

You don’t have to pay it before 30 June, but it must be calculated, formalised and ideally communicated to the agent by then. As long as it’s legally payable, it’s deductible.

 

2. pay super well before 30 June + consider extra contributions

John: Super has been in the spotlight lately. What do real estate business owners need to be mindful of?

Craig: Superannuation is only deductible when received by the super fund. Not when it leaves your bank account. So timing is key for tax minimisation.

If you want to claim a deduction for the June quarter, you should be paying super around mid-June. Even if your pay run isn’t done yet, consider making an interim payment.

 

3. meet SGC payment deadlines

Craig: And for quarterly SGC payments – if they’re not received by the fund by the 28th of the following month, they are not deductible at all. It’s a mini tax planning opportunity every quarter.

 

4. keep that log book

John: Real estate and car use go hand in hand. What should business owners be doing to maximise their deductions?

Craig: A valid log book is the most tax-effective way to claim car expenses. It requires 12 weeks of tracking trips, and that usage lasts for up to five years if it remains consistent.

Without a log book, you’re capped at 5,000 km of business travel, which equates to a relatively small deduction compared to actual usage.

 

5. get your legal structure right

John: Long-term tax planning is something we always talk about. Where do you start?

Craig: Your business structure is critical. If it’s set up right, you get more flexibility in how you manage profit and distribute income.

There’s no one-size-fits-all, but many real estate businesses are structured with a company owned by a trust. And with a 25% company tax rate, it’s a great vehicle for tax minimisation. But always talk to your advisor about what’s right for you.

 

6. consider how you get paid as the owner

John: What about owners taking money out? How can they do this effectively?

Craig: If your structure is set up well, you have multiple options – like dividends or trust distributions – which offer more flexibility.

Those options can come without payroll tax, no PAYG withholding, and no super obligations. It’s about managing how and where income lands for tax efficiency.

That flexibility is a major advantage when you’re looking at tax minimisation.

 

free tax planning ebook

Looking to keep more cash in your pocket this tax season? Our free ebook: FY25 Top Tax Tactics for Real Estate Businesses is packed with practical tips to maximise deductions and level up your tax strategy this financial year. Click below to download your free copy.

 

 

we’re here to help

If you have a burning question on your mind, you’re probably not alone! If you’d like us to answer any questions please reach out to your usual advisor at businessDEPOT or give us a buzz on 1300 BDEPOT.

 

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