EOFY Tax Planning: Why Acting Before 30 June Matters
As the end of the financial year approaches, many Australians focus on lodging their tax return. However, some of the biggest tax-saving opportunities occur before 30 June, not after.
Whether you’re a young professional, growing family, business owner or pre-retiree, taking action before the financial year ends may help reduce your tax liability, boost your superannuation and improve your overall financial position.
The key message this year is simple: plan ahead rather than waiting until tax time.
Tax Deductions That Could Help Reduce Your Tax Bill
Consider Prepaying Eligible Expenses
If you have available cash flow, prepaying certain deductible expenses before 30 June may allow you to bring forward a tax deduction into the current financial year.
Common examples may include:
- Investment loan interest
- Professional subscriptions
- Certain business expenses
- Eligible income-producing costs
By paying before 30 June, you may receive the tax benefit sooner rather than waiting until the following financial year. However, not all expenses qualify, so professional advice is important.
Be Prepared for Increased ATO Scrutiny
The Australian Taxation Office has indicated ongoing focus on:
- Record keeping
- Work-related expense claims
- Rental property deductions
- Capital gains from property, shares and cryptocurrency
Maintaining accurate records remains essential when preparing your tax return.
Income Protection Insurance Deductions
Many Australians are unaware that premiums paid for income protection insurance may be tax deductible.
However, only the portion covering loss of income is generally deductible. Other forms of personal insurance such as life insurance, trauma insurance or critical illness cover are generally not deductible.
Superannuation Opportunities Before EOFY
While tax deductions often receive the most attention, superannuation contributions can be equally valuable from a long-term wealth-building perspective.
Review Your Concessional Contributions
The annual concessional contribution cap is currently $30,000 and includes:
- Employer Super Guarantee contributions
- Salary sacrifice contributions
- Personal deductible contributions
Reviewing your contributions before 30 June can help determine whether there is remaining capacity available within your cap.
Non-Concessional (After-Tax) Contributions
Australians under age 75 may be eligible to contribute up to:
- $120,000 per year using after-tax contributions
- Up to $360,000 using the bring-forward provisions (subject to eligibility)
Before making additional contributions, it’s important to consider your total super balance and contribution limits.
Timing Matters
One of the most commonly overlooked EOFY issues is timing.
Super contributions count when the money is received by the super fund—not when the payment is sent. Leaving contributions until the final days of June can potentially create issues if processing delays occur.
What This Means for Different Australians
Young Professionals
EOFY can be an excellent opportunity to:
- Maximise salary sacrifice arrangements
- Review income protection cover
- Build long-term wealth through additional super contributions
Families
Families may benefit from:
- Reviewing investment-related deductions
- Managing household cash flow before tax time
- Strengthening retirement savings while balancing current financial needs
Business Owners
Business owners should consider:
- Bringing forward eligible deductions
- Reviewing business expenses
- Assessing cash flow opportunities before 30 June
Pre-Retirees
For Australians approaching retirement, EOFY may provide an opportunity to:
- Increase retirement savings
- Utilise contribution caps efficiently
- Review broader retirement planning strategies
Key EOFY Tax Planning Checklist
Before 30 June, consider:
✔ Reviewing deductible expenses
✔ Checking income protection insurance deductions
✔ Reviewing concessional contribution limits
✔ Assessing non-concessional contribution opportunities
✔ Confirming super contributions are received before EOFY
✔ Ensuring records are accurate and up to date
The earlier these steps are completed, the greater flexibility you may have before financial year-end.
Ready to Make the Most of EOFY?
With 30 June fast approaching, now is the ideal time to review your tax position, super contributions and financial strategy.
Whether you’re looking to reduce your tax liability, grow your superannuation or prepare for the year ahead, taking action before EOFY could make a meaningful difference.
Book a conversation with our team today and discover the opportunities available before the financial year ends.
Frequently Asked Questions
What EOFY tax deductions can I claim?
Depending on your circumstances, you may be able to claim work-related expenses, income protection insurance premiums, investment-related expenses and other eligible deductions. Keeping accurate records is essential.
Can I prepay expenses before 30 June to reduce my tax bill?
In some cases, yes. Certain eligible expenses can be prepaid before 30 June, allowing you to claim the deduction in the current financial year. Always seek advice to confirm eligibility.
What is the concessional super contribution cap for 2025–26?
The concessional contribution cap is $30,000 per year and includes employer super contributions, salary sacrifice contributions and personal deductible contributions.
Can I make additional after-tax contributions to super?
Eligible Australians may be able to contribute up to $120,000 per year as non-concessional contributions, or up to $360,000 under the bring-forward rule, subject to eligibility requirements.
When should I make my EOFY super contribution?
As early as possible. Super contributions count when they are received by your super fund, not when you transfer the money. Processing delays near 30 June can result in missed opportunities.
Is income protection insurance tax deductible?
Generally, yes. Premiums that cover loss of income may be tax deductible. However, life insurance, trauma insurance and total permanent disability cover are generally not deductible when held personally.
What happens if I exceed my super contribution cap?
Exceeding contribution caps can result in additional tax and reporting requirements. It’s important to review your contributions before making additional payments.
Should I speak with a financial adviser before EOFY?
EOFY is one of the best times to review your tax position, superannuation strategy and broader financial goals. Professional advice can help ensure you don’t miss valuable opportunities.
