End of Financial Year for Mortgage Brokers: 2 Key Considerations

The end of financial year is a busy time for mortgage brokers, with many seeing an increase in refinancing and new loan enquiries. This surge presents an opportunity to build stronger client relationships and offer tailored advice that reflects their changing needs.

But while supporting clients is a top priority, it’s just as important to get your own business in order. End of financial year planning helps mortgage brokers improve efficiency, profitability, and workflow—key ingredients for long-term business success. By embracing proactive end of financial year planning, mortgage brokers can be better positioned to take the next steps in maximising tax benefits and streamlining critical processes for their mortgage broking business.

This article delves into smart steps mortgage brokers should take to lodge their tax return and wrap up their business’s financials. It then covers 2 critical considerations mortgage brokers should focus on this end of financial year:

• The Instant Asset Write-Off Scheme
• Recent Payroll Tax Legislative Updates

Smart End of Financial Year Preparation Strategies for Mortgage Brokers

Before lodging your tax return and finalising your mortgage business’s finances, it’s essential to stay organised and thorough. Here is a quick end of financial year checklist for mortgage brokers:

• Review Financial Records: Review all financial documents, including client files, invoices, and receipts. This helps you identify any discrepancies or overlooked expenses.
• Reconcile Accounts: Reconcile accounts promptly to confirm every tax-deductible cost, such as repairs on investment properties and loan interests, is correctly recorded.
• Speak With Your Accountant: Speak with a registered tax agent or financial professional about eligible items like PAYG withholding variation, wage obligations or qualifying depreciating items.
• Monitor Market Trends: Check current market trends so you can guide property investors on stamp duty and capital gains tax considerations. Being informed about mortgage rates and property performance helps you give accurate advice.

Getting on top of this early allows you to fix issues, lodge on time, and maximise tax benefits—especially important if you’re juggling multiple settlements or large pipelines.

Leverage the Instant Asset Write-Off Scheme This End of Financial Year

The instant asset write-off is designed to boost economic activity by motivating businesses to invest in new equipment and assets. It gives eligible businesses the opportunity to claim the full cost of qualifying purchases upfront, instead of depreciating them over time — a valuable boost to cash flow and reinvestment potential.

For many mortgage brokers, the Instant Asset Write-Off Scheme invaluable for aligning their financial goals leading up to the end of financial year.

To qualify, your business turnover usually needs to be under $10 million, and each purchased asset must fall beneath the prescribed limit. This limit has changed several times, so it’s essential to confirm the current threshold before making any major outlays.

Over the past two years, changes to the threshold have required annual updates from the government, increasing the write-off limit from $1,000 to $20,000 in line with previous Budget announcements. While this year’s Federal Budget didn’t mention the scheme, the Prime Minister did make a pre-election commitment to extend the $20,000 threshold through to 30 June 2026. Without that extension, the cap would revert back to just $1,000 from 1 July 2025.

The constantly shifting rules make planning tricky. To help small businesses with more consistency and planning certainty, the Coalition has pledged to make the instant asset write-off permanent at a $30,000 limit if elected. That kind of certainty could make a real difference for businesses wanting to invest confidently in their future.

The scheme can significantly enhance cash flow by allowing you to claim tax deductions immediately rather than waiting over multiple years. If you’re looking to acquire new technology, vehicles or office furniture to support your mortgage business, the instant deduction helps you reduce taxable income faster. With this tax benefit, you gain the flexibility to reinvest more earnings into recruitment, marketing or expansion initiatives that elevate your services and reinforce client relationships.

Navigating Legislative Changes This End of Financial Year: Payroll Tax Updates

Staying updated on legislative changes has never been more critical for mortgage brokers this end of financial year, especially with the recent payroll tax developments in certain states. In some instances, mortgage brokers have been classified as employees of aggregators, creating potential liabilities for payroll tax. This change can place an extra financial burden on sole operators, and small brokers in particular may see a significant reduction in profitability once these taxes are factored in.

Mortgage brokers who primarily serve residential and investment property clients may also need to adjust fee structures or commission agreements to account for this added expense.

Industry bodies, including the MFAA, have responded by pushing for clarity and more equitable solutions. They’ve highlighted potential flaws in existing payroll tax legislation and emphasised that brokers serve as independent contractors, not traditional employees. This approach seeks to preserve competition, keep mortgage rates attractive to clients and ensure smaller mortgage businesses can continue thriving.

By working closely with mortgage brokers, mortgage aggregators and policymakers, the goal is to reform the system, so it better reflects the reality of mortgage broking operations.

Staying informed about such legislative shifts helps you make proactive decisions around expenses, compliance and business growth, as we approach the end of financial year.

Empowering End of Financial Year Success with Vision Aggregation

At Vision Aggregation, we understand the end of financial year can be overwhelming—but also full of opportunity. We also understand that every mortgage business has unique priorities and workloads during this crucial period. We help you streamline your workflow, capitalise on tax strategies, and focus on the high-value activities that grow your business.

That’s why our solutions are designed to simplify your workflow and keep you focused on high-value activities. Our goal is to equip you with strategies that drive long-term financial success for your mortgage broking business—even after the end of financial year has come and gone.

Ready to partner with an aggregator that prioritises your bottom line? Connect with us today.