The end of the financial year (EOFY) in Australia is more than a mere administrative hurdle; it is a critical strategic window for optimizing tax liabilities and enhancing retirement savings. For the 2025–26 period, several legislative shifts – including the finalization of Stage 3 tax cuts and adjustments to superannuation caps, demand proactive engagement.
Failing to act before the midnight deadline on 30 June 2026 can result in forfeited deductions and avoidable surcharges. This guide outlines fifteen essential actions to secure your financial position.
Table of Contents
Strategic Superannuation Management
Maximizing your superannuation is often the most effective way to reduce taxable income while securing long-term wealth.
1. Maximize Concessional Contributions
For the 2025–26 financial year, the concessional contribution cap is $30,000. This cap includes employer Superannuation Guarantee (SG) payments, which are mandated at 11.5%.
The Opportunity: If your employer’s contributions total $15,000, you can “salary sacrifice” or make personal deductible contributions for the remaining $13,000.
The Benefit: These contributions are taxed at a flat 15% within the fund, rather than your marginal tax rate, which could be as high as 45%.
2. Leverage Carry-Forward Concessional Caps
If your total super balance was less than $500,000 on 30 June 2025, you may be eligible for the carry-forward rule.
How it works: This allows you to utilize unused portions of your concessional caps from the previous five financial years.
Why now: 2025–26 is the final year to use any remaining cap from the 2020–21 year before it expires.
Related: How Carry-Forward Super Contributions Can Reduce Your Tax Bill
3. Lodge Your Notice of Intent to Claim
If you make a personal contribution to your super fund to claim a tax deduction, you must formally notify your fund.
The Deadline: You must submit a Section 290-170 notice to your super fund and receive an acknowledgment before you lodge your tax return or by 30 June of the following financial year (whichever is earlier).
4. Spouse Super Contribution Tax Offset
High-income earners can receive a tax offset of up to $540 by contributing to their spouse’s superannuation.
Eligibility: To receive the full offset, your spouse’s income must be $37,000 or less. The offset phases out entirely once their income exceeds $40,000.
5. Secure the Government Co-contribution
Low-to-middle income earners who make an after-tax (non-concessional) contribution of $1,000 may receive a $500 co-contribution from the Australian Taxation Office (ATO).
Check Thresholds: Eligibility depends on your total income being below certain annual thresholds (typically under ~$60,000).
Optimizing Individual Deductions
Personal tax planning involves capturing every legitimate expense incurred in the production of assessable income.
6. Review Working From Home (WFH) Claims
The ATO offers two methods for claiming home office expenses: the fixed rate method (set at 67 cents per hour) or the actual cost method.
Related: Fixed Rate vs Actual Cost: Home Office Deduction Guide
Record-Keeping: For the fixed rate method, you must have a contemporaneous record (like a diary or timesheet) of all hours worked from home. You cannot simply estimate at the end of the year.
7. Prepay 2026–27 Expenses
Under the 12-month rule, individuals can claim a deduction this year for expenses that provide a benefit for up to 12 months in the future.
Common Prepayments: Professional memberships, industry journals, and income protection insurance. By paying these before 30 June 2026, you pull the deduction into the current high-income year.
8. Manage the Medicare Levy Surcharge (MLS)
High-income earners without private hospital cover face an additional tax of up to 1.5%.
2025–26 Thresholds: The MLS applies if you earn over $101,000 (singles) or $202,000 (families).
Action: If you are nearing these thresholds, obtaining private hospital cover before 30 June can negate this surcharge for the days you are covered.
9. Charitable Giving
Donations to Deductible Gift Recipients (DGRs) are fully deductible.
Verification: Ensure you have receipts for any donation over $2. Remember, if you receive a benefit (like a raffle ticket or dinner), the “gift” component may not be fully deductible.
10. Motor Vehicle Logbook Updates
If you use the logbook method to claim vehicle expenses, your logbook must be current, meaning it was started or updated within the last five years.
Validity: If your 2021 logbook has expired, you must complete a new 12-week representative logbook before 30 June 2026 to continue claiming the actual-cost percentage.
Investment and Business Strategy
Tax-loss harvesting and capital allocation are essential for sophisticated wealth management.
11. Execute Tax-Loss Harvesting
Wash sale rules notwithstanding, selling underperforming assets (like shares or crypto) to realize a capital loss can be used to offset capital gains made during the year.
Timing: The trade must be executed by 30 June. Be wary of settlement times (T+2) if you are cutting it close.
12. Utilize the $20,000 Instant Asset Write-Off
Small businesses (turnover <$10 million) can immediately deduct the full cost of eligible assets costing less than $20,000.
The Trap: The asset must be first used or installed ready for use by 30 June 2026. Simply paying for the item is insufficient if it remains in a warehouse.
13. Finalize Bad Debt Write-Offs
To claim a deduction for bad debts, businesses must physically write them out of their accounts as unrecoverable before the EOFY.
Requirement: You must be able to prove that you have made a legitimate attempt to recover the debt before declaring it bad.
14. Delay Income (If Possible)
With personal tax cuts scheduled for 1 July 2026 (where the 16% rate drops to 15%), it may be advantageous to defer income.
Strategy: If you are a contractor or business owner, consider delaying invoicing until July to ensure the income is taxed at the lower 2026–27 rates.
15. Review Payday Super Readiness
While not a 2026 tax deduction, the 1 July 2026 start date for Payday Super requires businesses to have their payroll systems updated by 30 June.
The Change: From the new financial year, employers must pay superannuation at the same time they pay salary and wages, rather than quarterly.
Summary Table: 2025–26 Resident Tax Rates
| Taxable Income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 + 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 + 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 + 45c for each $1 over $190,000 |
| Note: Excludes 2% Medicare Levy. |
Frequently Asked Questions
When is the tax return deadline for 2026?
If you are self-lodging, the deadline is 31 October 2026. If you use a registered tax agent, you may have until 15 May 2027, provided you are on their client list by 31 October.
What is the tax-free threshold for 2025–26?
The threshold remains at $18,200. You generally do not pay tax on income below this amount unless you are a foreign resident.
What are the contribution caps for 2025–26?
The concessional cap (pre-tax) is $30,000 and the non-concessional cap (after-tax) is $120,000.