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As the end of the financial year (EOFY) approaches, it’s an important time to assess your tax position and superannuation strategy. With regulatory changes coming into effect from 1 July, this period offers a timely opportunity to put effective plans in place. 

Whether you’re focused on minimising your tax, building retirement savings, or making sure you’re compliant, EOFY is your annual reminder to act—and act smartly.

 

Superannuation Changes to Be Aware Of

1. Contribution Cap Increases:
   From 1 July, the annual limits on how much you can contribute to superannuation will increase. This affects both before-tax (concessional) and after-tax (non-concessional) contributions. These changes provide an excellent chance to contribute more to super and benefit from tax-effective retirement savings strategies—especially if you are planning to maximise your contributions or have unused caps from previous years.

2. Increase in Super Guarantee Contributions:
   The compulsory employer superannuation contribution rate is also rising. For employees, this means more going into super automatically. For employers, it’s crucial to prepare for the impact on payroll and budgeting. For individuals, it’s an opportunity to review your superannuation strategy in light of higher contributions.

Smart Strategies Before 30 June

Rather than scrambling at tax time, thoughtful EOFY planning helps you take advantage of available opportunities and avoid costly oversights. Here are some strategies worth exploring with professional guidance:

1. Review and Maximise Super Contributions
   If you haven’t yet reached your annual limit for pre-tax contributions, now may be the time to top up. This can be achieved via salary sacrifice or personal deductible contributions. These are often tax-effective and can also be used to reduce assessable income. Speak to your adviser about eligibility and timing, particularly if you’re considering carrying forward unused cap amounts from previous years.

1. Consider Government Incentives
   There are government initiatives designed to support low and middle-income earners who make after-tax super contributions. If eligible, you could benefit from additional contributions or tax offsets. These are not automatic and require action before the EOFY deadline.

1. Bring Forward Eligible Deductions
   If you run a small business or have deductible expenses such as professional fees or investment-related costs, consider prepaying some of these to bring forward tax deductions. This strategy needs to be weighed up carefully and is best done in consultation with your accountant.

1. Offset Capital Gains with Strategic Losses
   If you’ve sold assets this year and made capital gains, realising a capital loss on another investment may help to reduce your overall tax liability. This approach, known as tax-loss harvesting, should be part of a broader investment and tax planning conversation.

1. Spouse Contributions and Family Planning
   Making a super contribution on behalf of your spouse could potentially provide a tax offset and help balance your household superannuation. This is particularly useful if one partner has a significantly lower balance or income.

Advice is Crucial

Tax and superannuation regulations are constantly evolving, and the rules are not one-size-fits-all. Tailored advice ensures you’re making informed decisions aligned with your goals and obligations. A licensed financial adviser or accountant can help you:

• Identify strategies that suit your personal or business circumstances
• Avoid breaching contribution limits or missing key deadlines
• Prepare for upcoming legislative changes and make the most of them
• Stay compliant while minimising your tax liability

The window to act closes quickly as EOFY approaches—don’t leave it until the last minute.

 

Top 5 Questions to Ask Your Adviser or Accountant

1. Am I making the most of my contribution caps, or should I contribute more to super before EOFY?
   Clarify your current contribution levels and explore opportunities to optimise your position.

2. Can I use any unused concessional contributions from previous years?
   Find out if you’re eligible to carry forward unused amounts, and how that could benefit your tax position.

3. Are there any deductions or offsets I’m eligible for that I haven’t claimed yet?
   Sometimes opportunities go unnoticed—professional advice helps ensure you don’t miss out.
4. Should I realise any capital losses or gains this year to manage my tax?
   Your adviser can assess the timing and structure of investments to minimise tax impact.

5. What do the upcoming super changes mean for me or my business, and how should I plan for them?
   Ensure you’re not only compliant but also positioned to take full advantage of the changes.

Final Thoughts

EOFY is a natural time to pause and review your financial strategies, but it’s not just about compliance. It’s about maximising your opportunities. Whether it’s contributing to super more effectively, minimising tax, or planning for the future, the actions you take now can have a lasting impact.

Don’t try to navigate it all alone—reach out to your financial adviser and accountant today to make sure you’re fully prepared and taking advantage of all the strategies available to you.

 

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)

As the end of the financial year approaches, it’s a smart time to start preparing your personal tax return. 

Being proactive now can help you avoid stress, maximise your deductions, and potentially increase your refund. 

Whether you’re a salaried employee, small business owner, or investor, staying organised and informed will help you make the most of your tax position.

 

Key Personal Tax Tips

1. Organise Your Records: Gather all relevant documents early, including income statements (from employers or Centrelink), bank interest summaries, dividend statements, receipts for deductible expenses, and records of charitable donations. If you’ve worked from home, travelled for work, or used your own vehicle, ensure you have supporting evidence such as a logbook or diary entries.
2. Maximise Deductions: Understand what expenses you’re entitled to claim. Common deductions include work-related expenses (tools, uniforms, professional subscriptions), self-education, home office costs, and charitable donations. If you’ve made any personal superannuation contributions, ensure you lodge a “Notice of Intent to Claim” with your super fund to be eligible for a deduction.
3. Review Your Private Health Insurance: If your income exceeds a certain threshold and you don’t have private health insurance, you may be liable for the Medicare Levy Surcharge. Having an appropriate policy can help you avoid this extra tax.
4. Make the Most of Offsets and Rebates: Depending on your circumstances, you may be eligible for various tax offsets, such as the low and middle income tax offset, seniors and pensioners tax offset, or rebates for super contributions made on behalf of your spouse.
5. Declare All Income: This includes your salary, rental income, investment earnings, government payments, cryptocurrency transactions, and any side hustle earnings. The ATO uses data-matching systems, so undeclared income is likely to be picked up and may lead to penalties.
6. Plan Ahead for Next Year: Consider tax-effective strategies now for the coming year, such as salary sacrificing into superannuation, setting up a logbook for vehicle use, or reviewing your investment strategy to ensure it aligns with your tax goals.

 

Why You Should Consult an Accountant

While online tax tools and apps are readily available, the Australian tax system can be complex, especially with frequent changes to rules and thresholds. A qualified accountant stays up to date with the latest legislation and can help you identify all your eligible deductions, avoid mistakes, and reduce the risk of being audited.

For those with more complex finances—such as multiple income streams, rental properties, or share portfolios—a registered tax agent can help navigate the nuances of your return. They can also advise on legitimate tax minimisation strategies and help you structure your finances more effectively for the future.

Finally, using a registered tax agent gives you additional time to lodge your return—typically extending the deadline beyond the standard 31 October date, which can be a valuable benefit.

 

Conclusion

Taking the time to get your finances in order before 30 June can lead to a smoother tax season and better financial outcomes. Seeking professional advice ensures you’re not only compliant but also making the most of your tax position. Don’t wait until the last minute—book a consultation with a qualified accountant now to ensure your tax return is accurate, optimised, and stress-free.

 

 

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)