The end of the financial year is fast approaching, and it's the perfect time to make some smart money moves. To help you prepare, here are 10 last-minute tips you can still action to save on tax, cut costs, and wrap up FY25 in the best way possible.

10 Quick EOFY Tax Tips for 2025

  • Review Investments: Consider selling assets at a loss to offset gains, or delaying sales of profitable assets until after July 1.
  • Prepay Deductions: Pay for work-related expenses, donations, or insurance premiums now to claim in this financial year.
  • Check Super Deadlines: Your fund's cut-off date for contributions is likely before June 30.
  • Know Your Super Balance: Your June 30 balance affects your eligibility for strategies next year.
  • Plan for the $2M Transfer Balance Cap: If starting a pension, consider waiting until after July 1 for the higher cap.
  • Avoid the Health Insurance Loading: Get hospital cover before your 31st birthday to avoid the Lifetime Health Cover loading.
  • Use Extras Wisely: Check if your health fund's extras reset on Jan 1 or July 1.

1. How can I use my investment portfolio for tax savings?

Now is the perfect time to review your investments and weigh up whether it’s smarter to sell before or after the 30th of June.

Realise Capital Losses

If you hold assets that have performed poorly and no longer suit your goals, consider selling them before June 30 to realise a capital loss. These losses can be used to offset any capital gains you've made during the year, which can reduce your taxable income.

Defer Capital Gains

On the flip side, if you're planning to sell profitable investments, delaying the sale until after June 30 means the capital gain will be included in next financial year’s tax return. This gives you an extra year before the tax is due.

When making these decisions, it's also important to consider your marginal tax rate for this year and the next. If the stakes are high, it’s worth consulting a professional to help you choose the most tax-effective option.

2. What last-minute deductions can I claim?

Consider bringing forward any planned expenses to claim them as a deduction in this financial year. Some common options include:

  • Making a charitable donation to a registered charity.
  • Prepaying your income protection insurance premium (if the policy is self-owned).
  • Prepaying interest on investment loans (if your lender allows it).
  • Prepaying business expenses like rent or insurance if you are self-employed.
  • Paying for tax-deductible subscriptions, union fees, professional memberships, or work-related education courses.
  • Making a personal deductible super contribution.
Important Note: Don't spend money just for the sake of a tax deduction. A deduction only offsets a part of the cost, not the full amount.

EOFY Bonus Update: Working From Home Deduction Increase

The ATO recently increased the fixed-rate for working-from-home deductions to 70 cents per hour. This change applies retrospectively from the 1st of July 2024, so it covers the entire FY25 financial year.

3. Why are super contribution cut-off times important?

While the financial year ends on June 30, this isn't always the real deadline for super contributions. Many large super funds have earlier cut-off dates to ensure contributions are processed and counted for the current financial year. Check your fund’s deadline so you don’t miss out.

4. Why does my total super balance on June 30 matter?

Your total super balance on the 30th of June 2025 is a critical number. It affects your eligibility for various super strategies in the next financial year (FY26), including:

  • Using carry-forward concessional contribution caps (balance must be under $500,000).
  • Accessing the standard non-concessional contribution cap (balance must be under $2 million).
  • Qualifying for the government co-contribution or spouse contribution tax offset.

If you are close to a relevant threshold, be cautious about making additional contributions that could push you over the limit.

5. How does the increased Transfer Balance Cap affect me?

From the 1st of July 2025, the general transfer balance cap will increase from $1.9 million to $2 million. This cap limits how much super you can move into a tax-free retirement pension. If you're about to start your first retirement pension, consider whether it's worth delaying until July to take full advantage of the higher cap.

6. What is the SMSF contribution reserving strategy?

If you have a self-managed super fund (SMSF), this strategy allows you to use next financial year's concessional contribution cap while still claiming the tax deduction in this financial year. In short, you could contribute an extra $30,000, claim the deduction in FY25, and have it count towards your FY26 cap. This can only be executed in June.

7. How do I avoid the Private Health Insurance loading?

As of the 1st of July 2025, anyone born before the 1st of July 1994 will be over 31 years old. If you are in this age group and don't have private hospital cover, a 2% Lifetime Health Cover (LHC) loading will be applied to your premium for each year you delay taking out cover, up to a maximum of 70%. If you're reading this before July 1, there's still time to get cover and avoid the next 2% increase.

8. When do my health insurance extras really reset?

Around this time of year, you’ll see ads urging you to use your private health insurance extras before they "expire" on July 1. However, most Australian health funds actually reset their extras benefits on January 1, not July 1. While some funds do operate on a financial year basis, check your specific policy to confirm when your benefits actually reset so you can make an informed decision.

9. Should I review my private health insurance policy?

June is prime time for private health insurance deals. If you're thinking of switching, now is the perfect time to score a deal. Last year, major providers offered incentives like up to 12 weeks free, waived waiting periods on extras, and gift cards.

10. How can I apply lessons learned from this year?

The end of the financial year is a great time to reflect on what you've learned from past ones. Think about what went well, what you wish you'd done differently, and any mistakes you don't want to repeat. Feel free to share your own reflections and tips in the comments below—we can all learn a lot from each other's experiences.