Year-End Tax Planning Guide 2025–26: 40+ Strategies to Reduce Your Tax Before 30 June
Key Takeaways
- The 30 June deadline is hard — transactions, payments, and decisions must be completed by that date to count in the 2025–26 financial year.
- Superannuation is the single most powerful tax planning tool for most Australians — the concessional cap is $30,000 for 2025–26.
- Small businesses can claim the $20,000 Instant Asset Write-Off for eligible assets purchased and installed before 30 June.
- Trust distributions MUST be resolved by 30 June — missing the deadline means the ATO can tax the entire trust income at 47%.
- Capital losses can be harvested before 30 June to offset capital gains — review your share and crypto portfolio now.
- Prepaying up to 12 months of deductible expenses (loan interest, insurance, subscriptions) before 30 June brings the deduction forward.
- Payday Super starts 1 July 2026 — employer super must be paid within 7 days of each pay run from that date.
The end of the financial year is the single most important time on the Australian tax calendar. The decisions you make — and the actions you take — before 30 June 2026 will directly determine how much tax you pay for the entire 2025–26 year. Once the clock ticks past midnight on 30 June, the window closes. There are no extensions, no retroactive fixes.
This guide covers every major year-end tax planning strategy for individuals, investors, small business owners, and trust beneficiaries. Whether you're trying to reduce your personal tax bill, maximise your super, or make sure your business is in the best possible position before lodgement, this is your complete checklist.
The Golden Rule of Year-End Planning
Tax planning is not about avoiding tax illegally — it's about making smart, legal decisions that the tax law specifically allows. Every strategy in this guide is ATO-compliant. The goal is to ensure you're not paying more than you legally have to.
The 6 Key Planning Areas at a Glance
1. Superannuation — The Most Powerful Tool in the Kit
Superannuation is the most tax-effective investment vehicle available to Australians. Contributions taxed at 15% inside super versus your marginal rate of up to 47% outside it — the maths is compelling. Here's what to review before 30 June:
Concessional Contributions (Pre-Tax)
The concessional contributions cap for 2025–26 is $30,000. This includes your employer's Superannuation Guarantee (SG) contributions (currently 11.5%), salary sacrifice, and any personal deductible contributions you make.
If your employer is contributing $15,000 in SG, you have $15,000 of cap space remaining. You can top this up via salary sacrifice or a personal contribution (and claim a deduction in your tax return by lodging a Notice of Intent to Claim form with your fund before lodging your return).
Tax saving example: A person on $120,000 salary making a $15,000 personal deductible contribution saves approximately $5,250 in income tax (the difference between their 39% marginal rate and the 15% super tax rate).
Carry-Forward Contributions
If your total super balance was under $500,000 on 30 June 2025, you can carry forward any unused concessional cap from the previous 5 years. This means you could potentially contribute significantly more than $30,000 this year — a powerful catch-up strategy for those who had career breaks, lower income years, or simply didn't maximise contributions previously.
Check your available carry-forward balance in your MyGov account under ATO services.
Non-Concessional Contributions (After-Tax)
The non-concessional cap is $120,000 per year. If you're under 75 and your total super balance is under $1.9 million, you can also use the bring-forward rule to contribute up to $360,000 in a single year (using three years' worth of cap in one go).
Non-concessional contributions don't give you a tax deduction, but the earnings inside super are taxed at just 15% (or 0% in pension phase) — making it a powerful long-term wealth-building strategy.
Spouse Contributions
If your spouse earns under $40,000, you can contribute up to $3,000 to their super and claim an 18% tax offset (up to $540). The offset phases out between $37,000 and $40,000 of spouse income.
Super Contributions Must Clear by 30 June
Super contributions count in the year they are received by the fund, not when you initiate the transfer. Allow at least 3–5 business days for processing. Don't leave this until 29 June — if it doesn't clear in time, it counts in the next financial year and you may exceed the cap.
2. Investment Property — Timing Is Everything
Property investors have several powerful year-end strategies available. The key is acting before 30 June — not after.
Prepay Investment Loan Interest
If you have an investment property loan, you can prepay up to 12 months of interest in advance before 30 June and claim the full deduction in the current financial year. This is one of the most straightforward ways to bring a deduction forward.
For example, if your annual interest bill is $24,000, prepaying it before 30 June means you claim $24,000 this year instead of spreading it across next year. At a 39% marginal rate, that's approximately $9,360 in tax savings brought forward.
Contact your lender to arrange this — not all lenders offer it, and some charge a fee. The interest must be for a genuine investment loan, not a mixed-purpose loan.
Depreciation Schedules
If you own an investment property and don't have a depreciation schedule, you're almost certainly leaving money on the table. A quantity surveyor's depreciation report typically costs $500–$700 and can generate thousands of dollars in additional deductions each year.
Depreciation covers two categories: Division 43 (building write-off — 2.5% per year on construction costs) and Division 40 (plant and equipment — carpets, blinds, appliances, hot water systems). Both are legitimate deductions that many investors miss entirely.
Repairs vs Improvements
Repairs and maintenance are immediately deductible. Improvements are capital and must be depreciated over time. Before 30 June, ensure any genuine repair work (fixing a broken fence, repainting, replacing a broken appliance) is completed and paid — these are deductible in full this year.
Don't confuse repairs with improvements. Replacing a broken hot water system with a like-for-like unit is a repair. Upgrading to a premium system is an improvement. The ATO draws this line carefully.
3. Small Business — Act Before the Clock Runs Out
For small business owners, the weeks before 30 June are critical. Here are the highest-impact actions to take:
Instant Asset Write-Off — $20,000 Threshold
Eligible small businesses (aggregated turnover under $10 million) can immediately deduct the full cost of assets costing less than $20,000 in the year of purchase. The asset must be purchased AND installed ready for use before 30 June.
This applies to new and second-hand assets: computers, tools, equipment, vehicles (subject to the car cost limit), office furniture, and more. If you've been thinking about buying equipment for the business, now is the time. For a full breakdown of every deduction available to small business owners — from home office costs to vehicle claims — see our comprehensive guide to small business tax deductions in Australia.
Important: "Installed ready for use" means the asset must be physically in your possession and operational before 30 June — not just ordered or paid for. Order early to allow for delivery.
Pay Super Before 30 June
Employer super contributions are only deductible when actually paid to the super fund — not when they accrue. If you pay your employees' Q4 super (April–June) before 30 June, you can claim the deduction this year. If you wait until the 28 July due date, the deduction falls into next year.
This is especially important for business owners who are also employees of their own company — paying your own super before 30 June can make a significant difference to your tax position.
Write Off Bad Debts
If you have outstanding invoices that are genuinely uncollectable, write them off as bad debts before 30 June. To claim the deduction, you must have included the amount in your assessable income (i.e., you're on an accruals basis), made genuine attempts to recover the debt, and formally written it off in your accounts before 30 June.
Review Trading Stock
If you hold trading stock, you can elect to value it at cost, market selling value, or replacement value — whichever is lowest. If you have obsolete, damaged, or slow-moving stock, writing it down to market value before 30 June creates an additional deduction.
Prepay Deductible Expenses
Small businesses can prepay up to 12 months of deductible expenses before 30 June and claim the full deduction this year. This includes insurance premiums, software subscriptions, rent, professional memberships, and advertising costs.
Payday Super Starts 1 July 2026
From 1 July 2026, employers must pay super within 7 business days of each pay run — not quarterly. This is the biggest change to super in decades. If you haven't reviewed your payroll systems yet, do it now. Penalties for late payment will be significantly higher under the new regime.
4. Shares & Capital Gains — Harvest Losses, Time Your Sales
The share market and crypto markets give investors significant flexibility around timing. Here's how to use it:
Capital Loss Harvesting
If you have unrealised capital losses in your share or crypto portfolio, consider selling those positions before 30 June to crystallise the loss. Capital losses can be used to offset capital gains in the same year — reducing or eliminating your CGT liability.
For example, if you have a $20,000 capital gain from selling an investment property, selling shares at a $20,000 loss before 30 June would completely offset that gain. At a 39% marginal rate, that's $7,800 in tax saved.
Watch out for wash sales: The ATO has specifically warned against selling assets at a loss and immediately rebuying them purely to generate a tax deduction. If the dominant purpose is to obtain a tax benefit, the ATO can disallow the loss under the general anti-avoidance provisions.
The 12-Month CGT Discount
If you're planning to sell an asset that has increased in value, check whether you've held it for 12 months. Assets held for more than 12 months qualify for the 50% CGT discount — meaning only half the gain is included in your assessable income.
If you're close to the 12-month mark, it's almost always worth waiting. Selling one day early could cost you tens of thousands of dollars in additional tax.
Cryptocurrency
Every crypto disposal — selling, swapping, gifting, or using crypto to buy goods — is a CGT event. Review your crypto portfolio before 30 June. If you have unrealised losses, consider whether crystallising them makes sense. If you have gains, consider whether deferring the sale to next year (when your income may be lower) is beneficial.
The ATO receives data from Australian crypto exchanges. Don't assume crypto transactions are invisible — they're not.
5. Trusts — The 30 June Resolution Deadline Is Non-Negotiable
If you're a trustee of a discretionary (family) trust, this is the most time-critical item on your entire year-end checklist.
Pass Your Trustee Resolution Before 30 June
Discretionary trusts must pass a trustee resolution specifying how trust income will be distributed to beneficiaries before 30 June each year. Miss this deadline and the ATO can tax the entire trust income at the top marginal rate of 47%.
The resolution must be in writing, signed by the trustee(s), and dated before 30 June. It must specify the beneficiaries and the amount or proportion of income each will receive.
Optimise the Distribution
Review each beneficiary's tax position before deciding on distributions. Distributing to beneficiaries in lower tax brackets (e.g., adult children with low income, a corporate beneficiary taxed at 25–30%) can significantly reduce the overall family tax burden.
Be mindful of Section 100A — the ATO is actively scrutinising arrangements where trust distributions are made to low-income beneficiaries but the economic benefit flows to someone else (e.g., a parent). Ensure distributions reflect genuine economic entitlements.
6. Individuals — The Basics That Make a Big Difference
Even if you're not a business owner or investor, there are meaningful steps every individual can take before 30 June:
Bring Forward Deductible Expenses
Any work-related expense you're planning to incur in July — professional memberships, subscriptions, tools, uniforms — consider paying before 30 June to claim the deduction this year. The deduction is worth your marginal tax rate on the amount spent.
Work From Home Claims
If you've been working from home, ensure you've been tracking your hours. The fixed rate method allows 67 cents per hour for every hour worked from home. Keep a representative 4-week diary if you haven't been tracking throughout the year — the ATO accepts this as a basis for the full year.
Charitable Donations
Donations of $2 or more to DGR (Deductible Gift Recipient) registered charities are tax deductible. If you're planning to donate, doing so before 30 June means you get the deduction this year. Keep your receipts — the ATO data-matches donation claims against charity records.
Medicare Levy Surcharge
If your income exceeds $93,000 (singles) or $186,000 (families) and you don't have private hospital cover, you'll pay the Medicare Levy Surcharge of 1–1.5% on top of the standard 2% Medicare Levy. Taking out an appropriate private health policy before 30 June eliminates this surcharge for the full year.
Key Dates to Know
End of financial year
All transactions, payments, and decisions must be completed by this date to count in 2025–26
Q4 Super due
Employer super guarantee contributions for April–June quarter must be paid to the fund
Self-lodgement deadline
Deadline if lodging your own return. Must also register with a tax agent by this date to access the 15 May 2027 extension
Tax agent extended deadline
Most clients lodging through a registered tax agent get this extended deadline — register with a tax agent before 31 Oct to access it
The Complete Year-End Checklist
Use this section-by-section checklist in your meeting with your accountant:
Superannuation
- Make concessional (pre-tax) contributions up to the $30,000 cap — includes employer SG contributions
- Check your carry-forward unused cap balance if your super balance is under $500,000
- Consider a personal deductible contribution if you're self-employed or have employment income
- Make non-concessional (after-tax) contributions up to $120,000 (or $360,000 under the 3-year bring-forward rule)
- Spouse contributions — claim the tax offset if your spouse earns under $40,000
- Downsizer contributions — if you're 55+ and sold your home, contribute up to $300,000 per person
- Check your super fund has your TFN — without it, contributions are taxed at 47%
- Review your investment options and insurance inside super before year-end
Investment Property
- Prepay up to 12 months of investment loan interest before 30 June to bring the deduction forward
- Order a depreciation schedule if you don't have one — it's often worth thousands per year
- Ensure all repairs and maintenance are paid before 30 June (not improvements — those are capital)
- Review your rental property records — all income and expenses must be documented
- If selling, consider timing — hold for 12+ months to access the 50% CGT discount
- Check if your property qualifies for the main residence exemption (partial or full)
- Review land tax obligations in your state — thresholds and rates vary
Small Business
- Purchase and install eligible assets before 30 June to claim the $20,000 Instant Asset Write-Off
- Pay all outstanding employee superannuation before 30 June — late payments lose the deduction
- Write off bad debts before 30 June if you're on an accruals basis
- Review your trading stock — write down obsolete or damaged stock to market value
- Prepay deductible expenses (insurance, subscriptions, rent) for up to 12 months
- Review your business structure — is a company, trust, or sole trader still the right fit?
- Check your BAS lodgements are up to date — outstanding BAS can attract ATO attention
- Consider income deferral — if you can delay invoicing until after 30 June, do so
- Review Division 7A loans — ensure complying loan agreements are in place
Shares & Capital Gains
- Harvest capital losses — sell underperforming shares before 30 June to offset capital gains
- Hold winning positions for 12+ months before selling to access the 50% CGT discount
- Review your crypto portfolio — every disposal (sale, swap, gift) is a CGT event
- Consider timing of share sales around your income year — lower income years mean lower CGT
- Check if you have prior year capital losses to carry forward and offset against this year's gains
- Review any employee share scheme (ESS) or RSU vesting events — these trigger income tax
- Ensure you have records of all share purchases including cost base and acquisition dates
Trusts
- Pass a trustee resolution to distribute trust income BEFORE 30 June — missing this is catastrophic
- Review beneficiary tax positions — distribute to lower-income beneficiaries where possible
- Check Section 100A risk — distributions to adult children or related parties under informal arrangements
- Ensure trust deed allows distributions to intended beneficiaries
- Review whether a corporate beneficiary is appropriate to cap tax at 25–30%
- Confirm all trust minutes and resolutions are properly documented and signed
Individuals
- Bring forward deductible expenses — pay professional memberships, subscriptions, and work costs before 30 June
- Claim work-from-home expenses — 67c/hr fixed rate or actual cost method
- Review your HELP/HECS debt — voluntary repayments don't reduce your compulsory repayment
- Check your Medicare Levy Surcharge exposure — if income exceeds $93,000 and no private health cover, you'll pay 1–1.5%
- Review your private health insurance — ensure it's appropriate for your situation
- Charitable donations — only to DGR-registered charities, keep receipts
- Income protection insurance premiums — deductible if held outside super
- Check your tax withholding — if you've had multiple jobs or changed jobs, you may owe tax at lodgement
What NOT to Do Before 30 June
Wash Sales
Selling assets at a loss and immediately rebuying them purely for a tax deduction — the ATO specifically targets this under anti-avoidance rules
Artificial Arrangements
Any arrangement that lacks genuine commercial substance and exists purely to reduce tax — the General Anti-Avoidance Provisions (Part IVA) can unwind these
Exceeding Super Caps
Contributing more than your concessional or non-concessional cap — excess contributions are taxed at your marginal rate plus an interest charge
Backdating Documents
Trust resolutions, loan agreements, and other documents must be genuinely executed before 30 June — backdating is fraud and the ATO actively investigates this
Don't Leave It Until the Last Week
The biggest mistake Australians make with year-end tax planning is leaving it too late. Super contributions need processing time. Asset purchases need delivery and installation. Trust resolutions need to be properly documented. Loan prepayments need to be arranged with your lender.
Ideally, you should be reviewing your tax position in April or May — not scrambling in the last week of June. The strategies available to you are exactly the same, but the stress level is very different.
At Elite Accounting Solutions, we run year-end planning reviews for all our clients from April onwards. We look at your income, deductions, super position, investment portfolio, and business performance — and identify every legal opportunity to reduce your tax before the deadline.
Book Your Year-End Tax Planning Review
Don't wait until June. Book a year-end planning session with our team now and we'll identify every opportunity to reduce your 2025–26 tax bill before the deadline. We work with individuals, investors, small business owners, and trust beneficiaries across Melbourne's outer eastern suburbs.
Written by
Elite Accounting Solutions
CPA-registered accounting firm based in Mooroolbark, Victoria. Specialists in tax, SMSF, business advisory, and cloud accounting for individuals and small businesses across Melbourne's outer eastern suburbs. Learn more about us.
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