The end of financial year (EOFY) is fast approaching. Now is the time to review your position and consider the opportunities available to you before 30 June.
Time for a portfolio review
EOFY is the perfect opportunity to step back and review your investment strategy. With ongoing market shifts, your portfolio may present new opportunities to better align with your goals and risk appetite.
It’s also worthwhile reviewing your capital gains or losses ahead of 30 June, as this can highlight areas where you may be able to take proactive action.
For example, you may consider realising capital losses to offset gains from assets such as shares, property or cryptocurrency.
Super contribution strategies
Taking the time now to review your super contributions can help you maximise your position before EOFY.
If you have not reached the Super Guarantee (SG) contributions cap of $30,000, or $120,000 for non-concessional contributions, you may be eligible to make additional contributions to your super.
If you plan to contribute before 30 June, check when your employer will make their contributions. The introduction of Payday Super means some employers are contributing earlier, which may affect your contribution caps.
You will also need to find out the cut-off date from your super fund, which is typically around 25th – 26th June.
For SMSF members, make sure that:
- All contributions are received by the fund’s bank account by 30 June
- Minimum pension payments are made
- Asset valuations are up to date
- Fund records are current
Division 296 super tax
Looking ahead, Division 296 tax will apply from 1 July 2026 to super balances above $3 million.
This introduces an additional:
- 15% tax on earnings relating to balances between $3 million and $10 million; and
- 25% on earnings relating to balances above $10 million.
Tax timing strategies
Depending on your circumstances, EOFY can present opportunities to take a more proactive approach to managing your tax position.
You may also consider the timing of income expected before 30 June. Deferring income until after the EOFY may help reduce your tax liability.
Tax rates are also changing for lower income earners. From 1 July 2026, the rate for income between $18,201 and $45,000 will reduce from 16% to 15%, with a further reduction to 14% the following year.
Getting your tax return right
While planning ahead for the EOFY is key, it’s also important to take the time to understand what the Australian Tax Office (ATO) is focusing on when it comes to preparing your tax return post June 30.
This year, the ATO will be focusing on work-related deductions and income that’s not declared on tax returns.
If you are claiming work-related expenses, ensure they meet the ATO’s three golden rules:
- The expense must be directly related to earning your income;
- You must not have been reimbursed; and
- You must have records to support your claim, such as receipts or a logbook.
If you work from home for all or part of the week, you can use either the actual cost method or the fixed rate method.
Don’t overlook income
The ATO is also paying close attention to undeclared income. This includes:
- Cash payments
- Interest income
- Rental income
- Earnings from crypto assets.
For those with a side hustle, check whether it may be considered a business. All business income, regardless of amount, is assessable and must be declared.
If you intend to claim deductions for business expenses related to your side hustle, ensure they are directly connected to earning that income and are supported by receipts. With the right guidance, you can ensure everything is reported correctly while also identifying any legitimate deductions available to you.
Next steps
With EOFY fast approaching, small actions now can make a meaningful difference to your overall position.
If you’d like to explore your options or sense-check your approach, we’re here to help. Speak with your local Nexia Advisor to ensure you’re well prepared before 30 June.
