With the Australian financial year ending on 30 June, you have a short window to act. Decisions you make before that date can lower the income you're taxed on for 2025–26 — and once the clock ticks over, most of these doors close until next year.

This guide covers the practical, legal strategies Australians use to reduce taxable income, whether you're an employee, an investor, a sole trader or running a small business. None of it is exotic. It's about timing, contributions and good record-keeping.

Key Takeaways

  • The concessional (before-tax) super contributions cap is $30,000 for 2025–26 — contributing more can reduce your taxable income while building retirement savings.
  • Prepaying deductible expenses and bringing forward purchases before 30 June shifts deductions into this financial year.
  • You may be able to use unused concessional cap amounts carried forward from previous years if your super balance is under $500,000.
  • Always keep records — the ATO requires evidence for every deduction you claim.

Why Does 30 June Matter So Much?

In Australia, the financial year runs from 1 July to 30 June. The income you earn and the deductible expenses you incur within that period determine your tax position for the year. Anything paid on or before 30 June counts toward 2025–26; anything paid from 1 July counts toward the next year.

That single date is why "end of financial year" (EOFY) planning exists. A super contribution, a tool purchase or a donation made on 30 June can reduce this year's taxable income — the same action on 1 July cannot. Acting early matters too: super funds and payment processors need time to record the transaction before the deadline.

Can Extra Super Contributions Lower Your Tax?

Yes — and for most people it's the single most effective EOFY lever. Concessional (before-tax) super contributions are taxed at just 15% inside the fund for most earners, which is lower than the marginal tax rate paid by anyone earning above $45,000. The gap between your marginal rate and 15% is effectively tax saved.

For 2025–26, the concessional contributions cap is $30,000. This includes your employer's compulsory Super Guarantee payments and any salary-sacrifice amounts. If you haven't used the full cap, you can make a personal deductible contribution to top it up before 30 June.

To claim the deduction, you must:

  • Make the contribution so it's received by your fund before 30 June
  • Lodge a Notice of Intent to Claim with your super fund
  • Receive an acknowledgement from the fund before you lodge your tax return

Our note: Don't leave super contributions to the final day. Funds can take several business days to process, and a contribution received on 1 July counts for the wrong year — wiping out the deduction entirely.

What Are Carry-Forward Contributions?

If you haven't used your full concessional cap in recent years, you may be able to use the leftover amounts now. These are called carry-forward (or "catch-up") concessional contributions.

You can carry forward unused cap amounts from the previous five financial years, provided your total super balance was below $500,000 on 30 June of the prior year. This is especially useful in a year where your income is unusually high — for example, after selling an asset, receiving a bonus, or returning to work after a break.

Because the calculations depend on your individual super history, check your available carry-forward amount through your myGov account linked to the ATO before contributing.

Should You Prepay or Bring Forward Expenses?

Bringing deductible spending into this financial year is a straightforward way to reduce taxable income. The principle is simple: if you were going to incur a deductible expense anyway, paying for it before 30 June claims the deduction a year earlier.

Common examples include:

  • Prepaying interest on an investment loan (subject to the prepayment rules)
  • Income protection insurance premiums (premiums for policies held outside super are generally deductible)
  • Professional subscriptions, memberships and registrations related to your work
  • Repairs and maintenance on an investment property
  • Work-related tools, equipment or training you need anyway

If you're a sole trader or small business, you might also bring forward purchases of equipment or stock. The key test is that the expense must be genuinely deductible and actually incurred — you can't simply prepay arbitrary amounts to manufacture a deduction.

How Do Small Business Owners Reduce Taxable Income?

Small businesses have additional levers beyond the personal ones above. The instant asset write-off lets eligible small businesses immediately deduct the cost of qualifying assets, rather than depreciating them over several years — but the threshold and eligibility rules change between years, so confirm the current limit on the ATO website before you buy.

Other common small business EOFY moves include:

  • Writing off bad debts that are genuinely unrecoverable, before 30 June
  • Paying employee super early so it's received by funds before year-end (it's only deductible once paid)
  • Reviewing and scrapping obsolete stock or assets to claim the loss
  • Bringing forward deductible expenses such as repairs, supplies or subscriptions

Because business deductions interact with cash flow and BAS reporting, it's worth mapping out which expenses genuinely make sense to bring forward — spending money purely to save tax rarely leaves you ahead.

What About Investments and Capital Gains?

If you've sold an investment at a profit this year, you may face capital gains tax (CGT). One strategy investors consider near EOFY is tax-loss harvesting — selling an underperforming asset to crystallise a capital loss, which can then offset capital gains made elsewhere in the same year.

A few important points:

  • Losses can only offset capital gains, not ordinary income
  • Unused capital losses can be carried forward to future years
  • Beware "wash sale" arrangements — selling purely to create a loss and immediately rebuying the same asset can attract ATO scrutiny

Holding an asset for more than 12 months before selling generally qualifies you for the 50% CGT discount as an individual, which can be far more valuable than any EOFY shuffle. Don't sell a quality investment just to save tax.

Are Charitable Donations Tax Deductible?

Donations of $2 or more to organisations with Deductible Gift Recipient (DGR) status are generally tax deductible. If you've been meaning to give, making the donation before 30 June claims the deduction this year.

To claim:

  • The organisation must be a registered DGR (you can check on the ABN Lookup tool)
  • You must keep a receipt
  • The gift must be genuine — you can't receive a material benefit in return

It's a rare strategy that does real good and reduces your taxable income at the same time.

Frequently Asked Questions

What's the deadline for EOFY tax strategies?

Most strategies must be completed by 30 June 2026 for the 2025–26 financial year. Super contributions and donations must be received by the fund or charity before that date, not just initiated — so allow several business days for processing.

How much can I contribute to super before tax?

The concessional contributions cap is $30,000 for 2025–26, including employer contributions. You may be able to contribute more using carry-forward amounts if your total super balance was under $500,000 on 30 June 2025.

Do I need receipts for everything I claim?

Yes. The ATO requires written evidence for deductions. Keep receipts, invoices, bank statements and your super fund's acknowledgement of any deductible contribution. Without records, the ATO can disallow the claim.

Should I see an accountant before 30 June?

If your situation is more than straightforward — business income, investments, property, or a high-income year — speaking to a registered tax agent before EOFY is worthwhile. Many strategies can only be actioned before 30 June, so advice after that date is too late to apply this year.

The Bottom Line

EOFY tax planning isn't about loopholes — it's about timing and discipline. Topping up super within the cap, bringing forward genuine deductions, harvesting capital losses sensibly and giving to DGR charities can all reduce your taxable income for 2025–26, provided you act before 30 June.

The most expensive mistake is leaving it too late. Processing delays around the deadline are real, so start now rather than on 30 June. And because everyone's circumstances differ, confirm the current rules on the ATO website or with a registered tax agent before you commit.

This article is general information only and does not constitute financial or tax advice. Consult a registered tax agent or financial adviser about your specific circumstances.