The June 30 financial year deadline is upon us. It’s time to check your tax strategy, rebalance portfolios and set some strong foundations for the year ahead.
InvestmentMarkets has put together a good checklist to help us make sure we are across everything.
Whether you’re managing an SMSF, rethinking your super contributions, or realising gains and losses, now’s the time to give it a squizz, and take action if you need.
The EOFY investor tax checklist
Know what you own
This might seem obvious, but have you remembered all of your investments? It’s a good idea to review your portfolio, not just what’s sitting in your main trading app, to make sure it’s all there.
Consider listed and unlisted investments across all brokers and platforms, including shares, ETFs, managed funds, and alternative assets.
For SMSF trustees, this is also when accurate valuations are critical. The ATO requires all fund assets, including property, private investments, and securities, be reported at market value as of 30 June. These valuations also feed into each member’s total super balance, influencing contribution limits, transfer caps, and broader strategy eligibility.
Understand your tax position
Capital gains tax (CGT) is assessed based on the contract date of a sale, not settlement, so the timing of any transactions before 30 June could materially affect your tax position.
This is particularly important if you’ve realised significant capital gains throughout the year. Keep in mind that if an asset is sold after being held for less than 12 months, the full gain is taxed at your marginal rate. Hold it for longer and you may qualify for the 50 per cent CGT discount.
Use losses to your advantage
EOFY offers a strategic opportunity to review underperforming assets and consider tax loss harvesting. That is, selling investments at a loss to offset capital gains elsewhere. It’s a smart way to reduce your tax bill and rebalance your portfolio.
Just be cautious of ‘wash sales’. The ATO has flagged these, where investors sell and quickly repurchase the same or a similar asset, as tax avoidance strategies are subject to penalties. Instead, think of this as a chance to cut underperformers and reallocate to better long-term opportunities.
Maximise super contributions
While super may not always be top of mind, EOFY is the ideal time to revisit your strategy. This year, you can contribute up to $30,000 in concessional (pre-tax) contributions, and up to $360,000 in after-tax contributions using the bring-forward rule.
Spouse contributions or downsizer contributions of up to $300,000 per person from the sale of a family home can also be effective ways to boost your retirement savings while potentially reducing tax. And from July 2025, super balances over $3 million are set to attract a higher tax rate of 30 per cent. Reviewing your asset mix now could help you stay ahead of these upcoming changes.
Don’t forget your SMSF obligations
For SMSF trustees, EOFY comes with a few critical deadlines. Ensure all minimum pension payments have been made, contributions are within caps, and assets are accurately valued with clear documentation. Auditors are placing greater emphasis on independent evidence, so get ahead of it now.
It’s also worth reviewing your fund’s investment strategy. If your asset mix has drifted or if your members’ circumstances have changed, make sure the strategy is updated to reflect your current goals and market conditions.
New (financial) year, new you
Think of EOFY as more than just a deadline, it’s an opportunity to pause, plan and position yourself for what’s ahead. By making a few smart moves now, investors can strengthen their financial footing and step into the new financial year with greater clarity and confidence.
Whether it’s reviewing your portfolio, managing capital gains, or making the most of your super, EOFY is the time to take control and start the new year on the front foot.
And if you’re a small business
If you own a small business and have a tax debt, please take note.
From 1 July 2025, interest charged by the Australian Taxation Office (ATO) on late tax payments (currently set at 11.17 per cent and compounding daily) will no longer be tax deductible.
With more than $45 billion in tax debt owed by small businesses, the stakes are high.
Small businesses may not have been concerned about accumulating interest on tax debt, as it was deductible at tax time. Now it won’t be. Here’s how to prepare for the change:
- Know and monitor your cash flow. Understand when your tax is due and align it with your incoming payments. Planning ahead is essential.
- Get paid faster. Automate invoicing, offer flexible payment options and consider debt factoring to improve cash flow.
- Cut unnecessary costs. Review expenses such as energy, insurance, and inventory.
- Negotiate better terms and eliminate waste. Review your pricing Ensure your pricing reflects rising costs and that you’re focusing on profitable, reliable customers.
- Explore alternative finance. Interest on bank loans and overdrafts remains deductible and may be cheaper than ATO interest.
Happy EOFY planning, everyone.
