EOFY Tax Planning: Strategies Beyond Super
When people think about end of financial year (EOFY) planning, superannuation usually gets all the attention – and for good reason.
But focusing only on super can mean missing valuable opportunities.
There are a number of practical, non-super strategies you can implement before 30 June that may:
- Reduce your tax bill
- Improve your cash flow
- Ensure you’re not paying more tax than necessary
The key theme? Timing matters.
Why EOFY Planning Matters More Than Ever
For the 2025-26 financial year, Australian income tax rates remain:
- 0% to $18,200
- 16% from $18,201 – $45,000
- 30% from $45,001 – $135,000
- 37% from $135,001 – $190,000
- 45% above $190,000 (+ 2% Medicare levy)
From 1 July 2026, the 16% rate drops to 15% (and again to 14% in 2027).
–> This creates small but meaningful opportunities when deciding whether to bring income forward or defer it.
1. Capital Gains: Timing Your Investment Decisions
Harvesting Capital Losses
If you’ve realised capital gains this year (e.g. share, managed funds, property), you may reduce your tax by:
- Selling underperforming assets before 30 June
- Using those losses to offset gains
Important:
- Losses offset gains dollar-for-dollar
- Excess losses carry forward indefinitely
- They cannot reduce ordinary income
Be cautious of “wash sales” – selling and rebuying the same asset purely for tax benefits may be challenged by the ATO.
The 12-Month CGT Discount
Holding an asset for more than 12 months can significantly reduce tax:
- Under 12 months -> 100% of gain taxable
- Over 12 months -> 50% discount applies
Example:
- $100,000 gain
- Held 11 months -> taxed on $100,000
- Held 13 months -> taxed on $50,000
–> Timing a sale by just a few weeks can make a substantial difference.
2. Small Business: Instant Asset Write-Off
If you run a small business, you may be eligible for the instant asset write-off:
- Assets under $20,000
- Must be installed and ready for use before 30 June
- Deduct the full cost immediately
This applies per asset – meaning multiple purchases may qualify.
3. Bringing Forward or Deferring Income
Deferring Income
If you have control over income timing (e.g. business owners, consultants):
- Delaying invoicing until July may reduce tax
- Especially effective if next year’s income is lower
This is particularly useful if you expect:
- Reduced working hours
- Time off work
- Lower income next financial year
Understanding Dividend Timing
For investors:
- Dividends often come with franking credits
- These can reduce tax or even generate refunds
If your income is lower:
- You may receive a refund
If your income is higher:
- The benefit is reduced
4. Prepaying Deductible Expenses
You may be able to claim deductions earlier by prepaying expenses before 30 June.
Common examples include:
- Income protection insurance
- Investment loan interest
- Professional memberships
- Business expenses (rent, software, advertising)
The 12-Month Rule
To claim upfront:
- Service period must be ≤ 12 months
- Must end before next 30 June
5. Charitable Donations
Donations of $2 or more to registered charities are tax deductible.
- Can reduce taxable income
- Can be spread over up to 5 years
–> Important: Donations must be made before 30 June to count this financial year.
6. Investment Property Deductions
If you own an investment property, now is the time to review deductions such as:
- Property management fees
- Insurance
- Council and water rates
- Loan interest
- Repairs and maintenance
Repairs vs Improvements
- Repairs -> immediately deductible
- Improvements -> claimed over time
–> Timing repairs before 30 June can bring forward deductions.
7. Work-Related Expenses
Employees can claim expenses where:
- They are work-related
- They are not reimbursed
Examples:
- Professional development
- Subscriptions
- Home office equipment
Note:
- Under $300 -> no receipts required (but records still needed)
- Over $300 -> receipts required
A Smarter Way to Think About Tax Planning
Good tax planning isn’t about chasing deductions – it’s about making smarter financial decisions.
Before acting, ask:
- Does this strategy align with my long-term goals?
- Would I still do this if there were no tax benefit?
- Does it improve my overall financial position?
EOFY Checklist: Questions to Consider
Before 30 June, consider:
- Have I realised capital gains – and can I offset them?
- Are there expenses I can prepay this year?
- Have I reviewed all property deductions?
- Is my income higher or lower than next year?
- Should I defer or bring forward income?
- Have I made any charitable donations?
Final Thoughts
EOFY planning is mist effective when it’s far of a broader financial strategy – not just a last-minute exercise.
With:
- Potential tax changes on the horizon
- Ongoing economic uncertainty
- And evolving legislation
–-> This is a great time to review your position proactively.
Need Help Before 30 June?
At Leading Advice, we help clients:
- Identify tax-saving opportunities
- Structure investments efficiently
- Align tax decisions with long-term goals
If you’d like to review your position before EOFY, feel free to reach out.
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