EOFY Countdown: Essential Tips for Managing Your Finances and Claiming Deductions
- Arnold Shields
- Jul 3, 2023
- 3 min read
Updated: May 15
As the end of the financial year (EOFY) approaches, it’s time to take charge of your tax affairs. Whether you’re an individual taxpayer or business owner, this period presents critical opportunities to reduce your tax liability, boost your cash flow, and set yourself up for financial success in the year ahead. Here's our comprehensive guide to help you get EOFY-ready.
1. Assess Realised Capital Gains and Losses
Review any investments you’ve sold this financial year. Understanding your capital gain or loss position is essential for smart tax planning. If you’ve made significant gains, you may be able to offset them by realising a loss on underperforming investments—provided this aligns with your investment strategy.
2. Prepay Expenses and Defer Income (Where Appropriate)
Individuals and businesses can benefit from prepaying allowable expenses before 30 June. These might include:
Insurance premiums
Subscriptions
Loan interest (if applicable)
For accrual-based businesses, consider deferring invoicing until after 30 June to push income into the next financial year.
3. Boost Your Super Contributions
Topping up your super is a double win: it helps secure your retirement and lowers your taxable income. Ensure all concessional contributions are received by your super fund before 30 June. Don’t leave it to the last minute, some funds need several business days to process payments.
4. Complete Your Stocktake
If your business holds trading stock, conduct a detailed stocktake as close as possible to 30 June. Record:
Quantity on hand
Value of each itemThis ensures accurate cost of sales and tax reporting.
5. Track Work-from-Home Hours Correctly
New ATO guidelines have changed how you claim the fixed rate for working from home:
1 July 2022 – 28 Feb 2023: Keep a representative record of hours (e.g. a 4-week log).
1 March 2023 – 30 June 2023: You must maintain a daily record of actual hours worked.
If you use the actual cost method, existing rules still apply, detailed records of expenses are mandatory.
6. Claim All Applicable Deductions
Don’t leave money on the table. Common individual deductions include:
Work-related tools and uniforms
Professional development and courses
Charitable donations
Investment advice fees and interest expenses
If you can pay an allowable expense before 30 June, do it now to claim it this year.
7. Asset Purchases for Small Business: Act Before the Write-Off Drops
From 1 July 2024, the instant asset write-off threshold will reduce to $20,000. If you’re planning to purchase business equipment over that amount, it’s worth finalising the purchase before 30 June 2023 to claim the full deduction this year.
8. Write Off Bad Debts
Review your accounts receivable and write off unrecoverable debts before EOFY. This:
Cleans up your balance sheet
Allows you to claim a tax deductionMake sure there is evidence that the debt is genuinely unrecoverable and that it's been removed from your books by 30 June.
Ready to Take Control?
EOFY doesn’t need to be stressful. With careful planning, you can reduce your tax, improve your financial position, and enter the new financial year with confidence.
📞 Need help navigating your EOFY tax strategy? Contact Dolman Bateman today and book a personalised tax review.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
