3 EOFY wins: Lower tax, grow your super, invest smarter

Sales and tax returns. If that’s what the end of financial year means to you, then you might be missing out on some opportunities to better manage your wealth.

For the savvy investor, understanding rules – and any legislated changes for future financial years – could spell the difference between when you contribute to your super, or what investments you may choose to consider for your portfolio. It could even mean better management of your tax return now and in the future.

There are three key things to keep in mind as potential opportunities – and a handy checklist of other things to remember to keep yourself on the right side of the tax man.

1. More funding for your dream retirement

If building your superannuation is a key part of your plan, then don’t forget the options for contributions. You can check the fine details at ato.gov.au.

These are made from your pre-tax salary and include Superannuation Guarantee payments made on your behalf by your employer. These contributions are taxed at a rate of 15% rather than your marginal tax rate. 

For the 2025/2026 financial year, you can contribute up to $30,000. Next financial year (2026/2027), this amount increases to up to $32,500.

Don't forget the carry-forward rule!

If your total super balance was below $500,000 at the end of the last financial year, you can use the carry-forward rule to contribute up to five years’ worth of your unused concessional super caps.

Now is your last opportunity to use your cap from 2020/2021. 

You can check whether you are eligible and what you might be able to contribute by visiting the ATO section of your myGov account, select the super menu and information and then carry-forward concessional contributions.

Just make sure you are checking the right financial year as the ATO lists previous years too – something to keep note of if your balance is getting close to $500,000 as once you hit that point at the end of the financial year, you won’t be able to use carry-forward contributions in the following financial year.

These are made from your after-tax salary and you can contribute up to $120,000 to your superannuation if your total superannuation balance is below $2million for the 2025/2026 tax year. 

From 1 July 2026, you contribute up to $130,000 to your superannuation if your total superannuation balance is below $2.1 million.

If your total superannuation balance is below $2 million for the 2025/2026 tax year, you can bring-forward non-concessional contributions for up to three years (but the amount you contribute must not bring your total balance above that $2 million cap). 

This means you could bring-forward two years of non-concessional contributions to the value of $240,000 and three years’ worth to the value of $360,000. 

Otherwise, the cap is increasing next year to $130,000 and the total superannuation balance cap will be $2.1 million, so if you waited, you may be able to bring-forward two years up to $260,000 or three years of up to $390,000.

A few other things to consider…

• If you earn below $62,488 and make a voluntary non-concessional contribution to your superannuation of $1000, you may receive up to $500 as a government co-contribution to your superannuation.
• If your spouse or legal partner earns below $40,000 and you contribute up to $3,000 to their superannuation (within their non-concessional contribution cap), you may be able to claim a tax offset of up to $540 per year.
• You could also consider contributions splitting to help build your spouse’s super – you need to apply through your superannuation fund to do so after the end of the financial year – this must be within your own superannuation caps but is treated as a rollover for your spouse rather than a new contribution.
• Sold your primary residence held for more than 10 years and aged 55 years or above? You may be able to contribute up to $300,000 from the proceeds into your superannuation fund as a downsizer contribution within 90 days of receiving the money. You can only do this once – you can read more here.

2. Managing your investments

While yet to be passed through the Senate, the latest Federal Budget proposed changes to how capital gains tax is calculated using indexing rather than the blanket 50% discount for assets held over 12 months, along with changes to negative gearing.

Assuming these pass, then the changes will be applied from 1 July 2027. This means that for the next year, investors can continue to calculate capital gains based on the existing rules of the 50% discount if the asset is held longer than 12 months. After that, the 50% discount continues to apply to gains made before 1 July 2027 and there will be a minimum 30% capital gains tax applicable to gains made post 1 July 2027 after indexing.

If you have an asset held for more than 12 months that you intend to sell in the next few years, it may be worth taking the time to consider the different tax implications. 

The calculation will be simpler for assets sold in the next year to 30 June 2026 – but this doesn’t mean it wouldn’t be more tax efficient to wait to sell after the new regime. You may wish to discuss this further with a tax expert to consider the options available.

For those concerned about this, superannuation funds are exempt from the CGT changes and have their own tax regime. Some investors may choose to focus on growth assets where capital gains are expected within their super funds after the changes and use income-focused options, be it fixed income or dividend focused investments, outside of this.

Investors considering using negatively geared properties as part of their investment strategy should bear in mind that the proposed changes would see the benefits only apply to new build properties and grandfathered to properties purchased on or before 12 May 2026. This may reshape the options you use.

Another thing for investors to consider is tax cuts for the next two financial years.

If you intend to sell an investment for a capital gain in the coming months, the tax cuts may mean it is more tax efficient to sell in the 2026/2027 financial year instead of now under the current tax rate. 

It’s something to consider if you don’t need to access liquidity urgently. Whether this is a suitable option will depend on your tax bracket and total income and expenses.

Alternatively, if you have an investment you intend to sell and will crystallise a loss on it, you may find it more efficient to sell it this financial year and claim it in your tax return for the 2025/2026 financial year - once again, pending your own financial circumstances. 

Be wary of wash sales – if you purchase then sell, or sell then repurchase within a short period, the ATO will not allow you to claim a capital loss on your current tax return. 

Remember choosing to sell an investment should be because it no longer fits your portfolio or strategy.

3. Watch your deductions and don’t forget franking

Leading into the end of the financial year can be a great time to start compiling receipts that you may be able to claim a deduction on, along with keeping clear records of dividends and any franking credits you may be able to claim.

Not only will having clear records make it easier to do your tax return, you may even find a more tax effective result once you’ve factored any deductions and franking credits you are entitled to.

Remember to consider things like:

• Interest deductibility on loans being used for investment purposes
• Fees for expenses like tax preparation services, work-related memberships like unions or other professional associations, work related gear and tools,
• Donations, such as to charities.
• Eligible business expenses if you're operating your own business.

Track down your receipts now to make it easier for your tax return – and plan to keep all receipts in a set location from the start of the next financial year to make your life easier.

You can find the rules around deductions at ato.gov.au.

Franking credits can be a critical component of your income to remember – many companies in Australia offer a franking credit for Australian tax already paid on earnings with the dividend you receive. 

You can use this as part of your tax return to claim a deduction, or if you are a zero-tax investor, you may be able to claim a refund of that tax. You’ll be able to find out what, if any, franking credits apply to your dividends in the annual statement for your share holdings.

Your EOFY checklist

• Record all income sources, not just your salary. Don’t forget investment income, including sources like cryptocurrency.
• If you've realised capital gains from activities such as share trading, it's worth determining whether those gains are eligible for long-term capital gains treatment and whether you have any carried-forward capital losses that could be used to offset them and reduce your tax liability.
• Watch your rental returns so you can accurately outline these in your tax return.
• Collate any asset purchases and other reports you may need for your accountant, financial adviser or tax agent.
• Track down your receipts and if you are missing some, consider reaching out to the companies you’ve had expenses with to request receipts be reissued if possible.
• If you anticipate a tax liability for the end of this financial year, consider setting money aside now to cover this.
• If you are a small business owner, aim to invoice any outstanding amounts as early as possible so you are paid this financial year and chase any older unpaid invoices.
• Update income and hour records for any government services you use, such as Centrelink, so these are up to date for the next financial year.
• Check end of financial year and tax deadlines so that you lodge your return and any payments prior to this.

Importantly, if you're planning to make additional super contributions before June 30, don't leave it until the last minute! 

Contributions generally need time to be processed and received by your fund before the end of the financial year to count toward this year's caps.

Finally, tax and investing can be complicated. Seek expert advice when and if you need it and make use of the Australian Tax Office support lines for help and questions too.