Smart tax and super planning before EOFY
Tax time is just around the corner, so now is the time to make sure you’re prepared for 30 June.
Each year, the ATO highlights its areas of focus. Taking a few minutes now to review these can help you avoid issues when lodging your return.
Work-related deductions under scrutiny
This year, the ATO is 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:i
- The expense must be directly related to earning your income
- You must not have been reimbursed
- You must have records to support your claim, such as receipts or a logbook
For working from home expenses, you can use either the actual cost method or the fixed rate method.
Instant asset write-off
The instant asset write-off remains an important tax concession for Australian small businesses in the 2025–2026 financial year. Eligible businesses with an aggregated turnover of less than $10 million can immediately deduct the business portion of eligible assets costing less than $20,000, instead of depreciating them over several years. The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.ii
Don’t overlook income
The ATO is also paying close attention to undeclared income. This includes:iii
- 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.iv
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.
Time for a portfolio review
Recent market volatility makes this a good time to review your investment strategy.
Checking your capital gains or losses before 30 June allows you to take action where appropriate.
For example, you may consider realising capital losses to offset gains from assets such as shares, property or crypto.
Tax timing strategies
If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepaying them before 30 June to claim a deduction for this financial year.
You may also consider the timing of income expected before 30 June. Deferring income until after the end of the financial year 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 per cent to 15 per cent, with a further reduction to 14 per cent the following year.
Super contribution strategies
The end of the financial year is an ideal time to review your super contributions.
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.
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
Be alert for tax time misinformation
The ATO is warning taxpayers to be cautious about the growing wave of tax “tips”, shortcuts and refund claims circulating online.
Content from social media, “finfluencers” and even artificial intelligence tools can sound convincing, but it is not always accurate or relevant to Australian tax law.
Acting on this kind of advice can lead to incorrect claims, delays in processing returns and, in some cases, penalties.
Larger refunds, easy deductions or so-called “loopholes” should always be checked against trusted sources.
Ultimately, you are responsible for the accuracy of everything included in your tax return, regardless of where the advice came from.
Taking a few extra minutes to verify information before you lodge can help you avoid costly mistakes and keep your return on the right side of the rules.
Please get in touch if you need any help preparing for the end of the financial year.
Source: https://www.ato.gov.au
