Financial Strategies Business Owners Should Consider Before July 2025

As we approach a new financial year, several significant changes are on the horizon for business owners, particularly those with tax debts, SMSFs, or fluctuating cash flow. These shifts in regulation create both challenges and opportunities.

As finance brokers we work closely with accounting professionals. Our role is to help you navigate these changes with strategic lending solutions. Below are three key areas where we can add immediate value.

1. Refinancing Tax Debt: The End of Deductible GIC

From 1 July 2025, the General Interest Charge (GIC) on outstanding tax debts will no longer be tax-deductible. This change significantly increases the effective cost of carrying a tax debt with the ATO, particularly for businesses already managing tight margins or delayed receivables.

What this means

The cost of leaving tax debts unpaid becomes even more punitive. Business owners who have historically used the ATO as an informal line of credit will face higher real costs.

How we can help

Refinancing tax debts into a structured business loan or line of credit can not only reduce the interest rate burden but also preserve working capital. Many lenders offer more competitive rates than the GIC (11.17% per annum) and consolidating this debt can provide a clearer repayment structure. Partnering with Bentleys Finance ensures your clients are matched with the right lender, terms, and strategy—freeing up cash and avoiding mounting penalties.

2. Reviewing LRBA Strategies in SMSFs Under the Division 296 Lens

Proposed superannuation tax changes—Division 296—target members with total super balances above $3 million, introducing an additional 15% tax on earnings attributed to the excess amount. While still in draft, the legislation poses implications for SMSFs with Limited Recourse Borrowing Arrangements (LRBAs), particularly where property is held and gearing is involved.

What you need to consider

The structure of an LRBA could impact how earnings and unrealised gains are calculated under the new rules. For high-balance members, the tax efficiency of these strategies may diminish, especially when combined with increasing property values.

Where we add value

Finance brokers play a critical role in reviewing and restructuring existing LRBAs. Whether it’s assessing interest rates, considering refinancing options, or evaluating the benefits of winding down an LRBA, we work alongside accountants and financial advisers to ensure SMSF strategies remain aligned with both compliance and tax efficiency.

3. Improving Cash Flow by Financing WorkCover Premiums

WorkCover premiums are a significant annual cost for many businesses, and lump-sum payments can strain liquidity—especially in the first quarter of the financial year.

Why it matters

Business owners often delay payments, draw on cash reserves, or use overdrafts, all of which can affect operations and growth opportunities.

What we do

We can assist in arranging premium funding solutions that spread WorkCover payments over 10 monthly instalments, easing the burden on cash flow. This not only improves financial stability but can also align better with monthly revenue cycles. With access to specialist lenders, we help businesses manage large outgoings more predictably and affordably.

Want to know more about how Bentleys can help you?

Make a time for a chat with us today. We’re here to help you get where you want to be. Learn more about our Finance & Lending services.

Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.