 "EOFY Smart Tax and Super Planning")
Tax time is just around the corner, so now is the time to make sure you’re prepared for 30 June.
Each year, the ATO highlights its areas of focus. Taking a few minutes now to review these can help you avoid issues when lodging your return.
This year, the ATO is focusing on work-related deductions and income that’s not declared on tax returns.
If you are claiming work-related expenses, ensure they meet the ATO’s three golden rules:i
The expense must be directly related to earning your income
You must not have been reimbursed
You must have records to support your claim, such as receipts or a logbook
For working from home expenses, you can use either the actual cost method or the fixed rate method.
The instant asset write-off remains an important tax concession for Australian small businesses in the 2025–2026 financial year. Eligible businesses with an aggregated turnover of less than $10 million can immediately deduct the business portion of eligible assets costing less than $20,000, instead of depreciating them over several years. The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.ii
This measure helps improve cash flow and encourages investment by allowing businesses to reduce taxable income sooner. However, businesses should keep accurate records and seek professional tax advice to meet ATO requirements.
The ATO is also paying close attention to undeclared income. This includes:iii
Cash payments
Interest income
Rental income
Earnings from crypto assets
For those with a side hustle, check whether it may be considered a business. All business income, regardless of amount, is assessable and must be declared.iv
If you intend to claim deductions for business expenses related to your side hustle, ensure they are directly connected to earning that income and are supported by receipts.
Recent market volatility makes this a good time to review your investment strategy.
Checking your capital gains or losses before 30 June allows you to take action where appropriate.
For example, you may consider realising capital losses to offset gains from assets such as shares, property or crypto.
If you have regular deductible expenses, such as investment loan interest or annual costs, it may be useful for some to prepaying them before 30 June to claim a deduction for this financial year.
You may also consider the timing of income expected before 30 June. Deferring income until after the end of the financial year may help reduce your tax liability.
Tax rates are also changing for lower income earners. From 1 July 2026, the rate for income between $18,201 and $45,000 will reduce from 16 per cent to 15 per cent, with a further reduction to 14 per cent the following year.
The end of the financial year is an ideal time to review your super contributions.
If you plan to contribute before 30 June, check when your employer will make their contributions. The introduction of Payday Super means some employers are contributing earlier, which may affect your contribution caps.
Ways you could boost your super before 30 June include:
1. Salary sacrifice - make concessional (before-tax) contributions using a salary sacrifice arrangement.
2. Personal deductible contributions - You may be eligible to claim a tax deduction for personal contributions, if you have spare cash available.
3. Catch-up contributions - Unused concessional caps from the past five years if eligible.
4. Non-concessional contributions - Non-concessional contributions, made from your savings or after-tax pay.
5. Government co-contribution - Low-to-middle income earners making after-tax contributions before 30 June may be eligible to receive up to $500 from the government as a co-contribution.
6. Spouse contribution tax offset - If your spouse earns less than $40,000, you may be eligible for a tax offset of up to $540 by contributing to their super.
For SMSF members, make sure that:
All contributions are received by the fund’s bank account by 30 June
Minimum pension payments are made
Asset valuations are up to date
Fund records are current
The ATO is warning taxpayers to be cautious about the growing wave of tax “tips”, shortcuts and refund claims circulating online.
Content from social media, “finfluencers” and even artificial intelligence tools can sound convincing, but it is not always accurate or relevant to Australian tax law. Acting on this kind of advice can lead to incorrect claims, delays in processing returns and, in some cases, penalties.
The key message is simple: if something sounds too good to be true, it probably is, says ATO Assistant Commissioner Anita Challen.
“In an environment where misinformation can spread within minutes, it’s important to pause and check your tax information before you act on it,” she says.
Larger refunds, easy deductions or so-called “loopholes” should always be checked against trusted sources.
While AI tools can be useful, they often draw on a mix of outdated or international information, which may not apply to your situation, she says.
Ultimately, you are responsible for the accuracy of everything included in your tax return, regardless of where the advice came from.
Taking a few extra minutes to verify information before you lodge can help you avoid costly mistakes and keep your return on the right side of the rules.
Please get in touch if you need any help preparing for the end of the financial year.
Source: https://www.ato.gov.au
Every effort has been made to offer the most current, correct and clearly expressed information possible within this document. Nonetheless, inadvertent errors can occur and applicable laws, rules and regulations may change. The information contained in this document is general and is not intended to serve as advice. No warranty is given in relation to the accuracy or reliability of any information. Users should not act or fail to act on the basis of information contained herein. Users are encouraged to contact Rhodes Docherty & Co professional advisers for advice concerning specific matters before making any decision.
Rhodes Docherty Financial Advisors Pty Ltd ABN 43 122 391 315 is an Authorised Representative of RDC Advisors Pty Ltd, Australian Financial Services Licensee No. 396268 (Ph. 02 9988 4033). Any advice contained in this document is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Before making any decision, you should consider the appropriateness of the advice with regard to those matters.
Copyright Rhodes Docherty & Co © 2018. Liability limited by a scheme approved under the Professional Standards Legislation
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