End of Financial Year Strategies

With the End of the 2025 Financial Year fast approaching, it's the perfect time to review and optimise your financial strategies. Here are some key EOFY strategies that can help you make the most of this period:

Superannuation Contributions

• Personal Contributions: Consider making additional personal contributions to your superannuation to reduce your taxable income. These contributions may be tax-deductible, providing immediate tax benefits.

• Salary Sacrifice: Setting up salary sacrifice arrangements allows a portion of your pre-tax salary to be directed into your superannuation fund, reducing your taxable income. This time of year is also a good time to review any existing contributions to ensure you will remain within contribution caps.

• Spouse Contributions: Making contributions to your spouse's superannuation can be beneficial, especially if they have a lower income. This strategy may qualify for a tax offset.

  
  

Tax Deductions

• Prepaying Expenses: Work related expenses such as uniforms, tools, travel and home office costs may be tax deductible. Investment related expenses such as interest on investment loans, financial advice fees and property maintenance costs can also be deductible. Prepaying these expenses prior to 30 June may be beneficial to claim a deduction in the current financial year.

  
  

Capital Gains Tax (CGT) Management

• Offsetting Losses: Offset capital gains with any capital losses incurred during the year to reduce your overall CGT liability.

• Timing Asset Sales: Strategic timing of asset sales can help manage CGT.

Reviewing Financial Records

• Organise Documentation: Ensure all financial records are accurate and up-to-date. This includes reconciling accounts, gathering receipts, and invoices.

• Digital Records: Keep track of digital records and ensure they are well-organized to identify any gaps and streamline the tax filing process.

• Now is the time to dig out those receipts that are hiding in your emails (or your shoebox).

  
  

Government Co-Contributions

• Eligibility: Check if you are eligible for government co-contributions to your superannuation, which can boost your retirement savings.

Pension Payments

• Benefit Payments: Now is the time to check you will meet your annual minimum pension payments from a retirement income stream and adjust accordingly.

By implementing these strategies, you can make the most of the EOFY period and ensure you are well-prepared for the next financial year.

Remember: 30 June falls on a Monday this year, so get prepared well before mid-June to ensure you account for processing times and gain the benefit in the current financial year.

If you have any questions or need further details on any particular aspect, feel free to reach out to us.