Smart Tax Tips to Prepare for Financial Year End 2024/25

With 30 June fast approaching, now is the time to make sure your tax planning is on track. A little proactive preparation now can go a long way – helping to optimise your position, avoid surprises and set yourself up for a strong start to the new financial year.

Here are the key areas to review before the financial year end.

1. Maximise your super contributions

Contributing to super remains one of the most effective ways to reduce your taxable income while boosting your long-term retirement savings. The concessional (pre-tax) contribution cap for FY 2024/25 is $30,000. If you haven’t used the full cap in recent years and your total super balance is under $500,000, you may be eligible to carry forward unused concessional contributions from up to five previous years.

This can be a great opportunity to make a one-off larger contribution and receive a more meaningful tax deduction. But it’s important to check your eligibility and make sure your contribution is processed before 30 June.

You might also consider non-concessional (after-tax) contributions, which have an annual cap of $120,000. If you’re under 75 and meet the criteria, you may be able to bring forward up to three years’ worth of contributions – up to $360,000 in one go.

Another area to explore is spouse contributions or contribution splitting, which can help equalise balances between partners and may offer additional tax offsets or long-term planning benefits.

2. Review capital gains and losses

Now is a good time to assess your capital gains tax (CGT) position. If you’ve sold assets such as shares, property or managed funds and realised a capital gain this year, consider whether you have any capital losses – either this year or carried forward from previous years – that can offset those gains.

Be mindful of the 12-month holding rule to access the 50% CGT discount on personal assets and always consider whether selling assets before or after 30 June will deliver the better outcome.

For self-managed super fund (SMSF) members, asset sales can have different implications depending on whether the fund is in accumulation or pension phase. Selling an asset before transitioning to the pension phase may trigger more tax, so it’s important to time asset rebalancing in line with your retirement strategy.

3. Get trust distributions in order

If you’re the trustee of a discretionary or family trust, you’ll need to make and document trust distribution resolutions before 30 June. Without a valid resolution, the trust may be taxed at the top marginal rate.

It’s also important to be aware of the ATO’s guidance on Section 100A, which targets certain trust arrangements involving reimbursement agreements. If your trust distributes to adult children, companies or entities that don’t directly benefit from the income, it’s vital to ensure you’re not inadvertently breaching these rules.

Take the time to model expected distributions and tax outcomes for each beneficiary to ensure your strategy remains compliant and tax-effective. Your adviser can assist with this modelling and recommend the best course of action.

4. Business owners: plan ahead on assets and expenses

For eligible small business owners, the timing of asset purchases can have a significant impact. The rules around instant asset write-offs have shifted in recent years, so it’s important to check the current thresholds and eligibility. If you’re planning to buy equipment or vehicles, completing the purchase and installation before 30 June could allow you to claim the deduction in this financial year.

Business owners can also benefit from prepaying deductible expenses, such as rent, insurance, interest or subscriptions. If cash flow allows, bringing these expenses forward can reduce this year’s taxable income.

On the revenue side, consider whether it makes sense to defer income – such as invoices or deposits – to the new financial year. As always, this needs to be weighed against cash flow and commercial needs.

5. Don’t overlook work and investment deductions

Work-related expenses remain one of the most common deduction categories – and one where many taxpayers miss opportunities. Home office expenses, travel, uniforms, self-education and professional subscriptions can all be deductible if they meet the criteria. Keeping receipts or using the ATO’s myDeductions tool can make tax time easier.

Investment-related expenses should also be reviewed. This can include interest on loans used to purchase shares or property, ongoing property costs like maintenance and strata fees, and management fees on investment portfolios.

We’ve created a tax return checklist to help you review common deductions and ensure nothing gets missed.

6. Review your income protection and other insurance

Premiums for income protection policies held outside of super are generally tax-deductible. This deduction can be easily overlooked, especially if you pay premiums annually or in a lump sum.

It’s also a good time to check whether your cover still suits your needs. If your income or personal circumstances have changed, you may need to adjust your policy or consider whether it’s better held inside or outside of super. Structuring insurance through super may offer cash flow or tax benefits, but can also impact claims or benefit access. For this reason, it’s best to seek advice before making changes.

7. Prepay what you can

If your cash flow allows, prepaying expenses for the next financial year can bring forward deductions into this year. Common examples include:

• work-related memberships or subscriptions
• interest on investment loans
• insurance or maintenance for investment properties.

Prepaying can be a simple way to reduce your tax while covering costs you were going to pay anyway. Just make sure the expense qualifies for a deduction in advance.

8. Seek professional advice 

Tax laws and financial regulations can be complex and frequently change. Consulting both a financial planner and an accountant ensures you receive tailored advice that aligns with your unique financial situation and goals, helping you optimise your financial outcomes.

Use the end of financial year as a reset

The end of the financial year isn’t just about tax. It’s also a natural point to pause and reflect on your broader financial strategy. Are your goals still on track? Do your investments and cash flow support the lifestyle you want?

Take this time to review your financial plan, including your estate planning, insurance cover and upcoming contributions or pension payments for FY 2025/26. If you’re unsure where to start or want help applying these strategies to your personal circumstances, speak to your Apt Wealth Partners adviser. We’re here to make it easier.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.