As 30 June approaches, many individuals and business owners start thinking about tax. But the best tax outcomes are usually achieved before the Financial Year ends, not after it. EOFY is the perfect time to review your income, expenses, superannuation, business performance, records and future planning, while there is still time to take meaningful action.

The first step is to get organised. Pull together invoices, receipts, bank statements, loan statements, insurance documents, work-related expense records, motor vehicle details, investment income statements and donation receipts. The ATO makes it clear that if you want to claim a deduction, you generally need records to prove the expense was incurred and that it relates to earning your income. Good record keeping can make tax time easier and may help your accountant identify deductions you may otherwise miss.

For employees, EOFY is a good time to review work-related expenses such as tools, equipment, uniforms, professional memberships, subscriptions, training and home office costs. If you work from home, the ATO provides guidance on the fixed-rate and actual-cost methods, and you need to keep records of your working-from-home hours and relevant expenses. 

For business owners, EOFY is also a time to look carefully at planned spending. This does not mean spending money simply to reduce tax. However, if your business genuinely needs new equipment, technology, tools, furniture, repairs, subscriptions or professional advice, timing may matter. Eligible businesses may be able to use the instant asset write-off for eligible assets first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026, subject to the rules. 

Superannuation should also be reviewed before 30 June. For individuals, concessional super contributions can be a tax-effective way to build retirement savings, but contribution caps apply. Some people may be able to use unused concessional cap amounts from previous years if eligible. It is important to check employer contributions, salary sacrifice arrangements and contribution timing before making extra payments. 

Employers should also check payroll and super obligations. From 1 July 2025, the super guarantee rate is 12% of ordinary time earnings. With Payday Super due to start from 1 July 2026, employers should also use the new Financial Year to review payroll systems, cash flow processes and super payment procedures. 

Business owners should review debtors, unpaid invoices, stock levels and business profitability. If you carry trading stock, EOFY may require a stocktake or review of stock value. The ATO notes that changes in trading stock value can affect assessable income or deductions. 

For investors, EOFY is a sensible time to review capital gains or losses, dividend income, interest income and investment-related expenses. If you have sold shares, managed funds, property or other assets, speak to your accountant before 30 June so you understand the potential tax consequences. 

Charitable donations should also be checked. To claim a tax deduction, the gift generally needs to be made to an organisation with deductible gift recipient status, and you should keep receipts. 

Looking ahead, the new Financial Year is the perfect time to reset. Prepare a budget, review your business structure, improve record keeping, set aside money for tax and GST, and schedule regular conversations with your accountant. There are also personal income tax changes due from 1 July 2026, so planning ahead may help you make better decisions. 

Tax planning is not about shortcuts. It is about being organised, informed and proactive. The earlier you speak with your accountant or tax adviser, the more options you may have.

General advice warning: This article is general in nature only and does not take into account your personal circumstances. Tax laws and thresholds can change, and eligibility rules can be complex. Always seek advice from a qualified tax professional and/or Financial Adviser before acting.

Sources:

• ATO — Records you need to keep. 
• ATO — Work-related deductions. 
• ATO — Working from home expenses. 
• ATO — Fixed rate method for working from home expenses. 
• ATO — Instant asset write-off for 2025–26. 
• ATO — Instant asset write-off for eligible businesses. 
• ATO — Concessional contributions cap. 
• ATO — Contributions caps. 
• ATO — How much super to pay. 
• ATO — Final super guarantee rate increase to 12%. 
• ATO — Valuing trading stock. 
• ATO — General trading stock rules. 
• ATO — Keeping records of shares and units. 
• ATO — Capital gains tax. 
• ATO — Gifts and donations. 
• ATO — Personal income tax from 1 July 2026. 

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)