The end of the financial year (EOFY) is again fast approaching. June is the perfect time to get your finances in order and make the most of any opportunities. A bit of prep now can help you save money and create a smoother start to the new financial year, so here’s your EOFY checklist …
1. Start with a financial stocktake
* Gather all your essential documents— like bank statements, superannuation summaries, receipts for work-related expenses, and records of any investments or capital gains.
* If you’ve sold assets during the year, like shares or property, collect documented evidence of any gains and losses (as these can offset each other for tax purposes).
2. Know your allowable deductions
* If you’re an employee, consider deductions you may be entitled to – These may include home office expenses, mobile phones, uniforms, tools and travel expenses.
* Make sure all your deductions are legitimate and well-documented.
* Check the ATO website for deductions you can claim:
https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim
3. Be Generous
* Make donations to registered charities . Tax deductible donations are those made to charities listed as Deductible Gift Recipients, or DGRs. You’ll find a list of DGRs available at: https://abr.business.gov.au/Tools/DgrListing
* If your favourite charity or cause isn’t a DGR, the donation won’t be tax deductible, but that shouldn’t stop you donating to charitable causes you care about. Your money makes a difference to others, and that’s something to feel good about.
4. Review your Superannuation
* Consider topping up your super – even smaller amounts may help to reduce your tax bill and help to boost retirement savings over time.
* If you have the means, you may choose to max out your concessional (pre-tax) contributions cap (currently $30,000). It may also be worth checking if you’re eligible to catch up on any unused caps from previous years.
* Remember that contributions to super funds may take several days to process, so allow plenty of time to process payments before 30 June.
5. Do your prep for investment property
* Make sure you’ve claimed all allowable deductions, including interest on loans, maintenance costs, and depreciation.
* If you’re unsure about what you can claim, consult with your tax professional or the ATO.
6. Think strategically for your small business
* Now may be a good time to purchase tools or equipment you’ve been planning for your business.
* Consider acting before 30 June 2025 if you want to take advantage of the $20,000 instant asset write-off – The threshold drops to just $1,000 from 1 July 2025.
…Just make sure you’re clear on the financial implications of any decision before you rush in.
* Review your business structure, finalise trust distributions, and ensure PAYG and super obligations are up to date.
* Think about prepaying expenses like rent or insurance to bring forward deductions and reduce this year’s taxable income.
* And reach out to your tax professional or financial adviser if you need help.
EOFY doesn’t have to be a scramble. With a bit of planning and the right advice, you can close out the year with confidence.
To set yourself up for a stronger financial future, book an appointment with me at Align Financial on (02) 9913 9995.
