EOFY Planning: Maximise Deductions & Stay Ahead of ATO Scrutiny

As we approach the end of the financial year, it's time to consider how to boost your deductions while steering clear of areas that might attract attention from the ATO. Here's what to keep in mind.

Tax-Smart Strategies Before 30 June

Superannuation Contributions

If building your superannuation is part of your financial plan, now is the time to review your concessional contributions. The cap for 2024-25 is $30,000, which includes employer contributions, salary sacrifice amounts, and personal deductible contributions.

If your total super balance was under $500,000 as at 30 June 2024, you might also be eligible to carry forward any unused concessional cap amounts from the past five years. This could allow a significant one-off contribution, which could help reduce your taxable income—especially handy if you’ve realised a capital gain this year.

To claim a deduction for a personal super contribution:

• You must be under 75

• Lodge a valid notice of intent with your super fund

• Receive an acknowledgment before submitting your tax return

For those aged 67–74, the work test applies unless you qualify for an exemption.

Spouse ContributionsIf your spouse earns less than $37,000, a contribution to their super could earn you a tax offset of up to $540.

Upcoming Tax Rate Changes

From 1 July 2026, personal income tax for those earning between $18,201 and $45,000 will reduce gradually from 16% to 14% by 2027–28. The savings are modest—up to $536 annually—but worth factoring into longer-term planning. Note: implementation will depend on the outcome of the 2025 Federal election.

Giving Back: Charitable Donations

Donations of $2 or more to registered Deductible Gift Recipients (DGRs) are tax-deductible. The benefit increases with your tax rate—a $10,000 donation could save $3,250 in tax for someone earning $120,000, or $4,500 for someone earning $180,000 or more.

Looking for a more structured giving option? You might consider contributing to a public or private ancillary fund, which allows for immediate tax deductions while supporting long-term philanthropic goals.

Property Investors: Don’t Miss This

A depreciation schedule can help ensure you’re claiming all available deductions for wear and tear on your investment property. If you haven’t already arranged one, it’s worth considering.

ATO Hot Spots to Watch

Work-From-Home Expenses

This is a growing area of ATO focus. Two methods are available:

• Fixed Rate Method (70c/hour): Covers electricity, internet, phone, and office supplies. You must keep a detailed log of hours worked—estimates aren’t accepted.

• Actual Cost Method: Claim only the portion of expenses directly related to work. You’ll need receipts and a 4-week representative diary.

Landlord Red Flags

The ATO is targeting rental property deductions, particularly when:

• The property isn't genuinely available for rent (e.g. used by family, overpriced, or off the market)

• Interest is claimed on loans that include personal expenses

• Repairs are misclassified as capital improvements

Also remember:

• Capital works (like major structural updates) must be depreciated over time

• Rental income and deductions must align with your legal ownership split

Gig Economy Income

Income earned via platforms like Uber, Airbnb, YouTube, or OnlyFans must be declared—even if it's still sitting in your platform account.

Since 1 July 2023, ride-sourcing and short-term rental platforms have been required to report income directly to the ATO. From 1 July 2024, this extends to other gig economy platforms. If you haven’t declared this income, do so before the ATO finds it for you—data matching is in full swing.

Need Help Navigating EOFY?Tax time can be complex, but proactive planning can make all the difference. Reach out for tailored advice to make the most of your situation and stay compliant.

Need Help Navigating EOFY?

Tax time can be complex, but proactive planning can make all the difference. Reach out for tailored advice to make the most of your situation and stay compliant.