Make money, save tax with these experts’ end-of-financial-year tips

The clock is ticking for money-saving and tax refund-boosting strategies before the end of financial year. Try these experts’ tips.

Only one month remains in this financial year, and for millions of Australians it’s the most important month on the calendar to make money moves.

Workers, investors and super fund members all have access to different strategies to beat deadlines and maximise tax deductions, but in many cases must be done before June 30.

This year it’s more pressing than usual, because the stage three tax cuts from July 1 mean smaller refunds for the same tax deduction for next financial year and beyond.

Tribeca Financial CEO Ryan Watson says June brings tax planning and minimisation opportunities, and a chance to change some financial habits that could deliver you tens or hundreds of thousands of dollars.

WORKERS

Tax specialists say employees and self-employed people can beef-up this year’s refund with some smart spending in the final month of 2023-24.

Consider paying for work tools, home office supplies, uniforms, union fees, subscriptions to professional journals, income protection insurance, technology, conferences and work-related travel. All of these can deliver a tax deduction.

The Australian Taxation Office has about 40 different industry and occupation specific guides for workers to give them more information about tax deductions specific to their job. Industries covered include apprentices, cleaners, engineers, fitness sector employees, hairdressers, hospitality workers, nurses, retail workers, teachers and truck drivers.

Ryan Watson from Tribeca Financial

Tricia Kleinig from William Buck

INVESTORS

Watson says June is the time to evaluate investment portfolios and “consider selling some loss-making investments if you have generated some capital gains throughout the year”.

“If you have investment debt, consider prepaying loan interest on deductible loans to bring forward a tax deduction,” he says.

“And review your current debt arrangements to ensure that you have favourable terms, including a competitive interest rate.”

Property investors can prepay landlord insurance, spend money on maintenance and repairs, get a tax depreciation schedule, pay for pest control, cleaning, gardening and other property management expenses.

Tricia Kleinig, director of superannuation at William Buck SA, says there is a lot that can be done.

“This is a time when investors should be looking at any capital gains realised during the financial year and consider if it’s worth selling any investments to crystallise losses,” she says.

Experts say some investors may benefit from holding off selling assets with capital gains until the new, lower-tax financial year.

SUPERANNUATION

Kleinig says super should be high on people’s agenda “and not just those in or nearing retirement”.

“There are various strategies to help you make the most of super,” she says.

“Taking full advantage of the eligible contributions during the financial year can provide significant financial benefit.

“Individuals can contribute up to $27,500 directly to super and claim as a deduction in their personal income tax return. The catch-up contribution rule may also apply where you can go back five years and use any unused concessional contributions.”

Don’t let time run out on your tax strategies. Picture: iStock

MBA Financial Strategists director Darren James says June “puts a line in the sand” on the financial year and gives people the ability to take stock.

“It gives you an opportunity to make informed decisions about your super and minimise tax where possible,” he says.

James says three key super strategies to think about are:

• Reviewing how many concessional (tax-deductible) super contributions you have made and whether you can afford to make voluntary contributions up to your $27,500 annual cap. The cap also includes employer and salary sacrifice contributions.

• Considering spouse contributions, where a $540 tax rebate is available for people who pump $3000 into the super of a spouse who earns below $40,000.

• Checking the co-contribution scheme for lower income workers, where putting $1000 of your own money into super can attract a free $500 from the government – a 50 per cent return on your money.

JUNE TAX TIPS FOR INDIVIDUALS

• Stock up on home office items and prepay work-related expenses.

• Ensure you have a car logbook if you use your car for work.

• Bring forward future work or investment expenses into this financial year.

• Collect and collate receipts for tax-deductible purchases.

• Consider making donations to charities, so you get the tax deduction from July 1.

Originally published as Make money, save tax with these experts’ end-of-financial-year tips