End of financial year tax tips for individuals
Most tax planning has to happen before 30 June. Once the year is over, it’s too late to change the result. These are the moves worth considering in May and June.
1. Super contributions
The most effective option for many people.
- Personal deductible contributions: contribute from your own money and claim a deduction, as long as you stay under the $30,000 concessional cap (which includes your employer’s super). You must lodge a notice of intent with your fund and receive its acknowledgement before you lodge your tax return or withdraw or roll over the money.
- Catch-up contributions: if your total super balance was under $500,000 at the previous 30 June, unused cap amounts from the previous five years can be used now.
- Spouse contributions: contributing to a low-income spouse’s super can earn a tax offset of up to $540.
- Government co-contribution: lower and middle income earners making after-tax contributions may receive up to $500.
The fund must receive the money by 30 June. Payments made through a clearing house in the last days of June often arrive in July. Pay well before the deadline. See super basics.
2. Prepay deductible expenses
If you can afford it, prepaying up to 12 months of deductible expenses brings the deduction into this year:
- interest on an investment property or share loan,
- income protection insurance premiums held outside super,
- professional memberships, subscriptions and courses related to your current work.
3. Buy work equipment you need
Tools and equipment costing $300 or less, used mainly for work, can be claimed in full this year. More expensive items are depreciated. Only buy what you need; a deduction saves your tax rate, not the whole cost.
4. Donations
Gifts of $2 or more to deductible gift recipients (registered charities) are deductible. Keep the receipt. Tickets, raffles and items you receive something for usually aren’t.
5. Capital gains and losses
- If you’ve made a gain this year, selling an investment showing a loss can offset it, but only sell if it makes sense as an investment, and beware the ATO’s view on “wash sales” that are sold and bought straight back.
- Holding an asset for more than 12 months halves the taxable gain. If you’re close, waiting a few weeks can save a lot.
- The contract date decides the year, not settlement. See capital gains tax for property investors.
6. Defer income where it’s legitimate
If you’re able to receive a bonus or invoice for freelance work in July rather than June, the income falls into next year. It only works if the income genuinely isn’t received or earned until then.
7. Private health insurance
If your income is above the Medicare levy surcharge threshold and you don’t have hospital cover, you’ll pay the surcharge. Taking out cover now stops the surcharge for the rest of the year.
8. Get your records together
- Work from home: a record of every hour worked at home if you’re using the fixed-rate method.
- Car: a logbook or a reasonable estimate of work kilometres.
- Rental properties: agent statements, interest statements, receipts for repairs, and your depreciation schedule.
- Shares and crypto: buy and sell records, dividend statements, and managed fund tax statements (which often arrive in July and August).
- Receipts for everything you plan to claim.
See work-related deductions you can and can’t claim.
9. Don’t rush to lodge in July
Banks, funds and employers are still finalising information in July. Lodging before it’s all in the ATO’s pre-fill often means amending later. Lodging through a tax agent usually gives you until May.
Book your return
Our personal tax returns start at $285 + GST, with the fee itself deductible next year. Book in, or upload your documents through the client portal. See personal tax returns.