Published by Admin
The end of the financial year is just weeks away. Whether you are an individual, a small business owner, or a property investor, the decisions you make before 30 June 2026 can have a real and lasting impact on your tax position.
Here is our practical checklist of actions worth considering now — while there is still time to act.
For Individuals
1. Top up your superannuation
The concessional (before-tax) contributions cap for 2025–26 is $30,000. This includes your employer’s super guarantee payments. If your balance is below the cap, making a personal concessional contribution and claiming a tax deduction is one of the most efficient ways to reduce your taxable income.
Before you contribute, check how much your employer has already paid in for the year — your MyGov account or fund’s online portal will show this.
If you have a total super balance below $500,000 at 30 June 2025, you may also be eligible to use unused concessional cap amounts carried forward from previous years, potentially allowing a much larger deductible contribution.
2. Consider non-concessional contributions
The non-concessional (after-tax) cap is $120,000 for 2025–26. If you have surplus cash, contributing after-tax money to super shelters future investment earnings from tax — currently taxed at a maximum of 15% inside super, compared to your marginal rate outside it.
Depending on your age and total super balance, you may be able to bring forward up to three years of contributions in a single year. Seek advice before doing this — the rules have several traps.
3. Prepay deductible expenses before 30 June
If you have deductible expenses coming up — income protection insurance premiums, investment loan interest, subscriptions, or self-education costs — consider prepaying up to 12 months in advance. The deduction falls in the 2025–26 tax year, bringing forward the tax benefit.
4. Review your income protection insurance
If you do not have income protection insurance, the end of financial year is a good time to put it in place. Premiums are generally tax deductible when held outside superannuation. A policy taken out before 30 June means your first year’s premium is deductible this year.
5. Realise capital losses to offset gains
If you hold investments that are sitting at a loss and you were planning to exit them anyway, selling before 30 June allows you to crystallise those losses and offset them against any capital gains you have made this financial year. You cannot offset losses against ordinary income — only against capital gains — but unused losses carry forward indefinitely.
Be aware of the wash sale rules: the ATO takes a dim view of selling an asset at a loss and immediately reacquiring it purely to generate a tax benefit.
6. Check your Medicare Levy Surcharge position
If your income is above $93,000 (singles) or $186,000 (families) and you do not hold private hospital cover, you may be liable for the Medicare Levy Surcharge of 1% to 1.5% of your income. Taking out an eligible policy before 30 June — and maintaining it for the full year from 1 July 2026 — avoids the surcharge going forward.
For Small Business Owners
7. Instant asset write-off
For the 2025–26 income year, eligible small businesses (turnover under $10 million) can immediately deduct the cost of eligible depreciating assets costing less than $20,000. The asset must be first used or installed ready for use before 30 June 2026.
If you have been considering a purchase — equipment, tools, technology, a vehicle for business use — now is the time to act. The asset needs to be in your hands and operational before midnight on 30 June, not just ordered.
8. Write off bad debts
If you have invoices on your books that are genuinely irrecoverable, write them off before 30 June. A bad debt must be formally written off in your accounts during the income year to be deductible in that year. Document your attempts to recover the debt and make a formal decision to write it off — do not just leave it on the ledger.
9. Pay employee superannuation before 30 June
Super guarantee contributions are only deductible in the year they are actually received by the super fund — not when you process them. To claim the deduction in 2025–26, your employees’ super payments must clear into their funds before 30 June 2026.
Given processing times, aim to submit payments no later than mid-June. Payments processed on 28 or 29 June may not clear in time.
10. Prepay business expenses
Similar to individuals, businesses can prepay up to 12 months of qualifying expenses before 30 June and claim the deduction this year. Common candidates include insurance premiums, rent, subscriptions, and lease payments.
11. Review your trading stock
If you carry trading stock, you are entitled to value it at cost, market selling value, or replacement value — whichever is lowest — at 30 June. If your stock has declined in value, choosing the lower valuation reduces your assessable income. Do a stocktake and document your reasoning.
12. Defer income where possible
If your business is cash-based and you have flexibility over when you invoice or receive payment, consider deferring income that would otherwise fall in June to July. This pushes the tax liability into the 2026–27 year and defers payment of any tax owing by 12 months.
This is not always practical, but for service businesses with some control over invoicing timing, it is worth considering.
13. Trust distribution resolutions
If you operate through a discretionary trust, your trustee must make a valid distribution resolution before 30 June 2026. A failure to do so means the income is taxed at the highest marginal rate. Do not leave this until 30 June — have your accountant prepare the resolution well in advance.
For Property Investors
14. Get a depreciation schedule if you do not have one
If you own an investment property and have never had a quantity surveyor prepare a depreciation schedule, you may have been leaving money on the table every year. Schedules are retrospective — your accountant can amend prior year returns to claim missed depreciation in many cases.
The cost of a schedule is itself tax deductible.
15. Review loan structures
With interest rates having moved significantly over recent years, it is worth reviewing whether your investment loan structure is still optimal. Interest is only deductible on borrowings used to generate assessable income. If you have mixed personal and investment debt, the structure of your loans matters for your deduction entitlements.
16. Prepay investment loan interest
If you have an investment property loan and your lender permits it, prepaying up to 12 months of interest before 30 June brings forward the deduction into the current financial year. This is especially worthwhile if you expect your income — and therefore your marginal rate — to be lower in 2026–27.
For Everyone: Housekeeping Before 30 June
17. Gather your records now
Your tax agent will need:
- Payment summaries or income statements from employers
- Bank interest statements
- Dividend statements and DRP records
- Rental income and expense records
- Private health insurance statements
- Any receipts for work-related expenses, donations, or self-education costs
Getting these together now — rather than in October when memories have faded and documents are harder to locate — makes the lodgement process faster and reduces the risk of missed deductions.
18. Check your private health insurance extras
Most extras cover resets on 1 January or 1 July. If yours resets at 1 July, June is the time to use remaining entitlements for dental, optical, physiotherapy, and other ancillary services.
19. Make tax-deductible donations
Donations of $2 or more to an organisation with Deductible Gift Recipient (DGR) status are tax deductible. If you were planning to give to a charity, doing so before 30 June rather than in July means the deduction falls in this financial year.
A Note on Timing
Many of the strategies above depend on transactions occurring before 30 June 2026 — not being initiated, but actually completed. Super contributions, asset purchases, super guarantee payments, and bad debt write-offs all have timing requirements that need to be met for the deduction or benefit to apply in the current year.
With 30 June falling on a Tuesday this year, the last business days of June are 26, 27, 28, 29, and 30 June. Build in processing time for anything that depends on a third party.
Talk to Us Before the Clock Runs Out
EOFY tax planning is most effective when it is tailored to your specific income, structure, and circumstances. The strategies in this article are general in nature — your situation may make some highly valuable and others irrelevant or even counterproductive.
Our team is available now to review your position before 30 June. The earlier you get in touch, the more options we have available.
Contact us today to book your end of financial year review.
This article is general in nature and does not constitute personal financial or tax advice. Tax rates, caps, and thresholds are based on current ATO guidance for the 2025–26 income year and are subject to change. Please consult a registered tax agent for advice specific to your circumstances.