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Australia Year-End Tax Planning Guide

the Australian year-end tax planning strategies (the "end of financial year — the EOFY — planning") for the individuals and the businesses. The guide covers: the deductions to maximise before the June 30 (the "bringing forward the expenses") — the taxpayer can "bring forward the deductions" by: (a) the "prepaying the expenses" (the "paying the insurance premiums, the subscriptions, the courses, the interest" before the June 30), (b) the "purchasing the work-related equipment" (the "tools, the laptops, the protective gear" before the June 30 — the "instant asset write-off" for the small businesses and the "temporary full expensing" for the other businesses), (c) the "repairing the rental property" (the "paying for the repairs and the maintenance" before the June 30), (d) the "donating to the charities" (the "DGR-registered charity donations" claimed in the year of the donation); the income deferral strategies (the "delaying the income to the next year") — the taxpayer on the "accruals basis" can "delay the invoicing" until after the June 30 to defer the income; the taxpayer on the "cash basis" can "delay the receipt of the income" by the "deferral of the payment"; the "termination payments" and the "bonuses" may be able to be "deferred" by the employer; the "capital gains timing" — the taxpayer can "delay the sale of the asset" until after the June 30 to defer the CGT liability (the "the CGT is incurred in the year of the sale"); the super contributions before the June 30 (the "last-minute super strategies") — the "concessional contributions" (the "employer SG, the salary sacrifice, the personal deductible contributions") must be "received by the super fund" before the June 30; the "personal deductible contributions" must be made by the June 30 and the "notice of intent to claim the deduction (the NOI)" must be lodged before the tax return lodgement; the "non-concessional contributions" (the "after-tax") must be made by the June 30; the "spouse contributions" for the "spouse tax offset" must be made before the June 30.

Small Business Year-End Strategies

• Instant asset write-off: The "small business" (the "aggregated turnover below $10 million") can claim the "instant asset write-off" for the eligible assets costing below the "$20,000 threshold" (the "2025-2026 year"). The asset must be "first used or installed ready for use" before the June 30. The "temporary full expensing" (the "no cost limit") is available for the businesses with the "turnover below $5 billion" for the assets "used or installed" before the June 30.
• Trading stock: The "trading stock" must be "valued at the end of the income year" at the "cost price, the market selling value, or the replacement price". The business can "write off the obsolete stock" (the "stock below the cost") before the June 30. The "stocktake" should be conducted as "close to the June 30 as possible". The "sole trader" or the "partnership" with the "change in the stock value below $5,000" can "use the opening stock value".
• Bad debts: The "bad debt" must be "written off in the books" before the June 30 to claim the deduction. The business must "determine that the debt is unrecoverable" (the "the debtor is bankrupt, the debtor cannot be located, the debt has been outstanding for the extended period"). The "general provision for the doubtful debts" is NOT deductible — only the "specific bad debts written off" are deductible.

For the small business concessions and the deductions, see our Small Business Concessions Guide →.

Investment and the Capital Gains Planning

• Capital gains timing: The "CGT event" occurs at the "time of the contract" (the "exchange of the contracts for the property") or the "time of the sale" (the "shares and the ETFs"). The taxpayer can "defer the sale" until after the June 30 to "shift the CGT liability to the next year". The "wash sale" (the "selling the shares at the loss and the repurchasing the same shares within the 30 days") is the "anti-avoidance measure" — the "loss is disregarded".
• Capital losses: The "realised capital losses" can be used to "offset the capital gains" in the same year. The "unused capital losses" are "carried forward to the future years" (the "no time limit"). The taxpayer with the "unrealised losses" may consider "selling the underperforming assets" before the June 30 to "crystallise the losses" and "offset the gains". The "capital losses" cannot be offset against the "ordinary income".
• Dividend and the distribution dates: The "ex-dividend date" determines the "year of the dividend income". The shares purchased "before the ex-date" receive the dividend in the "current year". The shares purchased "on or after the ex-date" do not receive the dividend — the "dividend goes to the seller". The "managed fund distributions" are typically "declared in June" — the investor should check the "distribution date" for the tax planning.

For the CGT discount and the cost base rules, see our Capital Gains Tax Guide →.

Personal Year-End Strategies

• Prepayment of the expenses: The "prepaid expenses" are deductible if: (a) the service period is "12 months or less" (the "the prepayment rule" — the "12-month rule"), (b) the expense is "paid before the June 30", (c) the expense ends on or before the "June 30 of the next year". The common prepayments include: (a) the "income protection insurance", (b) the "professional subscriptions", (c) the "course fees", (d) the "interest on the investment loans".
• Charitable donations: The "DGR-registered charity donations" are deductible if made before the June 30. The "donation of the shares" (the "listed shares held for more than 12 months") is the "no CGT on the donated shares" — the "CGT exemption" for the donation and the "full market value deduction". The "workplace giving" is the "PAYG withholding" arrangement — the donation is deducted from the "pay before the tax".
• Medicare levy surcharge management: The individual whose "MLS income" is close to the "$93,000 single threshold" (or the "$186,000 family threshold") should consider the strategies to "reduce the MLS income" before the June 30. The strategies include: (a) reducing the "reportable super contributions" (the "salary sacrifice"), (b) reducing the "net investment losses" (the "negatively geared property" losses), (c) "taking out the appropriate private health insurance".

For the tax offsets and the LITO and the SAPTO, see our Tax Offsets Guide →.