Smart Year-End Tax Strategies for 2025
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Smart Year-End Tax Strategies for 2025

ByRob Laurie

As the end of the financial year (EOFY) approaches, many Australians are wondering how they can minimise their tax bill while still working toward their long-term goals. Whether you’re an employee, investor, or retiree, there are powerful steps you can take before 30 June to improve your financial position.

At Wealth Factory, we help everyday Australians make smarter decisions about tax, superannuation, and wealth building. In this guide, we’ll walk you through the most relevant year-end tax strategies for individuals in 2025, including capital gains planning, deductions, super contributions, and donation strategies.

1. Capital Gains and Losses: Timing Is Everything

If you’ve sold shares, property, or other investments this year, there’s a good chance you’ve made a capital gain. That gain is added to your taxable income unless you take action.

The ATO allows you to offset capital gains with capital losses, either from this year or carried forward from previous years. Realising a capital loss on another asset before 30 June could help reduce the tax you owe. However, it’s important to note:

  • You can only use capital losses to offset capital gains, not regular income

  • The date of contract (not settlement) determines which financial year the gain or loss applies to

  • Prior year capital losses are applied before current year losses

Tip: If you’ve triggered a large capital gain, it could impact your eligibility for government benefits or even cause Division 293 tax to apply on your super contributions.

2. Work-Related Deductions: Know What You Can Claim

Work-related deductions are one of the easiest ways to reduce your taxable income, but they must be properly recorded and only apply to expenses connected to your income.

Common deductions include:

  • Car and travel expenses

  • Uniforms and protective clothing

  • Home office expenses

  • Self-education related to your current job

  • Tools, subscriptions, and union fees

If you’re claiming home office expenses under the new 67 cents per hour method, be sure to keep a daily diary of your work hours. Alternatively, you can claim a portion of your actual costs—like electricity, internet, and depreciation on office equipment.

3. Investment-Related Deductions: Bring Forward Expenses

If you have an investment loan, you might be able to prepay up to 12 months of interest before 30 June and claim it in this year’s tax return. This strategy works well if you’re expecting a higher income this year than next.

Other claimable investment-related expenses include:

  • Interest on loans for income-producing property, shares, or unit trusts

  • Investment advice fees (only for advice related to current investments, not insurance or estate planning)

  • Monitoring and admin costs for existing investments

 Note: No deduction is available for interest on vacant land or future (not current) investments.

4. Rental Property Tax Tips

If you own a rental property, income is taxed when received, and deductions are generally claimed when paid. Bringing forward repairs or other deductible costs before EOFY can help lower your taxable income.

Examples of deductible expenses include:

  • Council rates, insurance, body corporate fees

  • Repairs (not renovations or initial improvements)

  • Loan interest

  • Agent fees

Be careful with what qualifies as a “repair” versus an “improvement”—improvements may need to be depreciated or added to the asset’s cost base.

5. Superannuation Strategies: Reduce Tax and Boost Retirement

Super is one of the most tax-effective ways to build wealth. Here are three powerful super strategies to consider before EOFY:

  • Carry Forward Unused Concessional Contributions

If your super balance was under $500,000 on 30 June last year, and you didn’t use your full concessional cap ($30,000 for 2024–25), you may be able to catch up on unused contributions from the last five years.

This is especially useful if you’ve had a capital gain or higher income this year.

  • Make Personal Concessional Contributions

Even if you can’t use the carry-forward rule, you may still be able to make personal concessional contributions to top up your super and claim a tax deduction. These count toward your $30,000 concessional cap and include employer contributions.

Be mindful of Division 293 tax, which applies an extra 15% tax on super contributions if your income and certain other amounts exceed $250,000.

  • Contribute to Your Spouse’s Super

You could receive a tax offset of up to $540 by contributing to your spouse’s super (up to $3,000) if their income is below $40,000 and their total super balance is under $1.9 million.

6. Income Protection and Tax Agent Fees

Premiums for income protection insurance are generally tax-deductible if the policy is held in your name and benefits are paid directly to you. Just remember:

  • You can’t claim for policies held inside super

  • You must declare the income if a claim is paid

You can also claim for tax agent fees, travel to your accountant, and even educational material used to help you manage your taxes.

7. Donating to Charity

Making donations before 30 June is a simple way to do good while reducing your tax bill. Donations must be made to deductible gift recipients (DGRs), and you must keep receipts.

You can also claim tax deductions for:

  • Gifts of property or shares

  • Cultural gifts to museums or public institutions (these may also be exempt from capital gains tax)

However, donations can’t create a tax loss, so be sure you’re not over-contributing just for the deduction.

8. Beware of Division 293 and HECS/HELP Impacts

If your adjusted income exceeds $250,000, any concessional super contributions you make could be taxed an extra 15% under Division 293. While this still results in an overall tax saving, it’s worth calculating the net benefit before contributing extra to super.

Also, additional income (including bonuses, capital gains, or rental income) could increase your HECS/HELP repayment or reduce your childcare subsidy. Keep this in mind when planning year-end strategies.

Final Thoughts: It Pays to Plan Ahead

EOFY isn’t just about rushing to claim deductions. It’s an opportunity to align your tax strategy with your financial goals. That might mean contributing to super, selling assets, prepaying expenses, or simply staying compliant with your records.

At Wealth Factory, we help you make smarter decisions all year round, so EOFY isn’t a mad dash. Whether you’re an employee, investor, or nearing retirement, we can guide you through tailored strategies that support your goals and reduce your tax burden.

Book your free consultation today and take control of your EOFY planning.

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