The beginning of a new year is an excellent time to revisit your financial obligations, particularly your taxes.

January sets the tone for the rest of the year, so ensuring your tax responsibilities are in order early can help you avoid stress and penalties down the line. 

Here’s a checklist of tax-related tasks to focus on this January.

1. Review Your PAYG Instalments

Pay As You Go (PAYG) instalments allow you to pay your estimated tax liability throughout the year if you’re self-employed or run a business. January is the perfect time to review these instalments to ensure you’re on track.

• Check your income from the first two quarters of the financial year and adjust your PAYG instalments if necessary.
• If you anticipate any significant changes in your income, update your ATO estimates to avoid overpaying or underpaying tax.

2. Organise Employee PAYG Withholding

For employers, January is an ideal time to check your PAYG withholding obligations for employees.

• Ensure all employee details are current, including TFNs and superannuation information.
• Review withheld amounts to ensure they align with the latest tax rates and employee declarations.
• Submit any outstanding payments to the ATO promptly to avoid penalties.

3. Superannuation Contributions

Superannuation is a significant part of Australia’s tax landscape, especially for employers.

• If you employ staff, ensure you’ve made all mandatory super contributions for the previous quarter (October to December) by the January 28 deadline.
• For individuals, consider whether you’d like to make additional concessional contributions to reduce your taxable income for the 2024–2025 financial year.

4. Reconcile GST Reporting

If you’re registered for GST, January is an opportunity to review your GST obligations:

• Check that you’ve correctly reported GST for the October–December quarter.
• Ensure your records align with the actual income and expenses.
• Lodge your Business Activity Statement (BAS) by the February 28 deadline.

5. End-of-Year Tax Planning Review

Though the end of the financial year is months away, early preparation pays off:

• Review your year-to-date income and deductions to estimate your tax liability.
• Identify areas where you can legally maximise deductions, such as business expenses, depreciable assets, or personal investments.
• Gather receipts, invoices, and other documents to streamline the EOFY process.

6. Check for Updated Tax Legislation

Each year brings potential changes to tax laws. January 2025 is no exception:

• Review any tax legislation updates, including new income tax thresholds, superannuation caps, or small business concessions.
• If you’re unsure about recent changes, consult an accountant to avoid missing key updates that might impact your obligations.

7. Address Outstanding Tax Debts

Finally, ensure you’ve addressed any outstanding debts with the ATO. January is a great time to set up payment plans for overdue amounts or negotiate terms if needed. Staying proactive will help you avoid additional interest or penalties.

Why Should You Do These In January?

Taking these steps in January sets a proactive tone for the year and ensures you avoid last-minute scrambling as deadlines approach. 

Whether you’re an individual taxpayer or a business owner, checking your tax obligations early prepares you for a more confident financial year.

If you need assistance, consider consulting a tax professional to ensure you meet all obligations accurately and on time.