End of Year Tax Planning: Strategies Before June 30
June 30 marks more than the end of the financial year—it's the deadline for tax-effective decisions that shape your wealth trajectory for decades. Learn salary sacrifice, super contributions, loss harvesting, and strategic deductions to minimize tax and accelerate your path to financial independence.
Why June Matters: The Time-Sensitive Window
Most tax planning happens after the year ends, during tax return season (July–October). By then, your income is locked in, your spending is finalized, and your investment losses are determined. Too late to change much.
June 30 is different. In the final weeks of the financial year, you can still:
- Make voluntary superannuation contributions (up to caps) and claim the deduction
- Execute salary sacrifice arrangements with your employer for the remainder of the year
- Realize investment losses to offset gains (loss harvesting)
- Accelerate or defer income strategically
- Plan charitable donations before year-end
- Time personal expense deductions carefully
Decisions made in June have immediate tax impact. A $5,000 salary sacrifice contribution in early July is too late; made by June 30, it saves $1,600 in tax (at a 32% marginal rate) immediately.
Strategy 1: Salary Sacrifice—The Biggest Tax Arbitrage
Salary sacrifice is redirecting a portion of your pre-tax income into superannuation. Instead of taking home $100k and contributing to super from post-tax income, you earn $95k in salary and have $5k contributed directly to super. The tax benefit is immediate and powerful.
How It Works
When you sacrifice salary to super, you avoid paying income tax on that amount (FY2026-27: a $180k earner pays 37% + 2% Medicare levy = 39%). Instead, super contributions are taxed at a concessional 15%. Your savings: 39% − 15% = 24% per dollar contributed.
Example: Sarah earns $120,000. Her marginal tax rate (including the 2% Medicare levy) is 32%. She sacrifices $5,000 to super.
- Kept as salary: $5,000 × (1 − 0.32) = $3,400 lands in her pocket
- Sacrificed to super: $5,000 × (1 − 0.15) = $4,250 lands in her super — $850 more working for her straight away
- Grown at 7% for 25 years: the $4,250 becomes ~$23,065 vs ~$18,452 for the $3,400 outside super
- Difference: ~$4,600 extra wealth from a single year's sacrifice — the 17-cents-per-dollar head start compounding
Done consistently, salary sacrifice accelerates super balances materially — the same 15%-vs-marginal-rate gap applies to every dollar, every year.
The Catch: Contribution Caps
Concessional contributions (salary sacrifice plus the 12% employer super guarantee) are capped at $32,500 per financial year (FY2026-27, up from $30,000). Exceed that, and excess contributions are taxed at your marginal rate. Plan carefully if you earn above $180k (employer contributions alone push toward the cap) or already sacrifice aggressively.
Strategy 2: Non-Concessional Contributions—The Post-Tax Route
If you've hit the concessional cap (e.g., you already sacrifice $12k, and your employer adds $20.5k of super guarantee on a high salary—total $32.5k), you can still contribute post-tax money to super. Non-concessional contributions are capped at $130,000 per year (FY2026-27), or up to $390,000 using the 3-year bring-forward rule.
Why? Once in super, earnings are taxed at just 15% instead of your personal marginal rate (up to 47%). Over 20 years on $100k at 7%:
- In super (15% tax on earnings): grows to roughly $340k
- Outside super (39% tax on earnings for a high earner): grows to roughly $250k
- Difference: around $90k extra wealth from concessional super treatment
Non-concessional contributions make sense if you have surplus income above your salary sacrifice cap and want to shelter investments from tax. But timing matters: you must contribute before June 30 to claim the benefit in the current financial year.
Strategy 3: Investment Loss Harvesting
If you hold shares or ETFs outside super, you'll have capital gains each year (dividends, price appreciation). You're taxed on those gains at your marginal rate. But losses can offset those gains.
The Tactic
Before June 30, review your investment portfolio. If you have a holding that's declined in value, selling it realizes the loss. You can then immediately repurchase the same or similar holding (e.g., sell VAS, buy VAS a few days later). You've crystallized the loss without materially changing your portfolio.
Example: You bought $50k of an ASX200 ETF at $75; it's now trading at $68. You have $3,500 unrealized loss. Sell it, realize the $3,500 loss, then buy it back immediately. That loss offsets capital gains elsewhere in your portfolio, saving tax.
The Catch: Wash Sale Rules
The ATO has rules against "wash sales"—selling and re-buying within a short window to manufacture losses. The specific rule is complex, but safest practice: sell a loss position, wait 30 days, then rebuy. Or buy a different holding (e.g., VAS vs VGS) that tracks a similar market.
Strategy 4: Deductions You Might Have Missed
End of year is when many people realize they've forgotten deductible expenses. The ATO allows deductions for work-related costs:
- Home office: If you work from home, claim a proportion of utilities, rent/mortgage interest, rates, insurance, phone, internet (2024: 67c per hour worked)
- Work-related travel: Mileage, fuel, tolls for car expenses; public transport to clients (commute is not deductible)
- Professional fees: Subscriptions to professional bodies, accreditation costs, ongoing education related to your job
- Work clothing: Only if it's specialized (e.g., safety gear, branded uniform). Regular clothes aren't deductible.
- Equipment: Laptops, phones, furniture purchased for work (>$300 items depreciate; <$300 items are immediately deductible)
- Professional subscriptions: Tax software, industry journals, professional memberships
Keep records: receipts, bank statements, a diary of work-from-home days. The ATO accepts digital copies. One overlooked home office claim can be worth $2,000-5,000 depending on your work setup and marginal tax rate.
Strategy 5: Spousal Super Contributions
If your spouse earns little or no income, you can contribute to their super account and claim a tax deduction (up to $3,000 per financial year). You get the deduction; they build super.
Example: You earn $150k; spouse earns $20k (part-time). You contribute $3,000 to your spouse's super and claim the deduction. You save $3,000 × 39% = $1,170 in tax. Your spouse's super grows tax-advantaged. Decades later, you both have larger super balances and potentially lower tax liabilities in retirement.
The Compounding Impact: Tax Optimization Over 30 Years
The power of tax optimization compounds over time. Consider two scenarios:
Scenario A: No Tax Planning
- Earns $120,000 gross
- Takes home $78,000 after tax and super guarantee
- Saves $10,000 post-tax each year (outside super)
- By age 65: $420,000 invested outside super at 7% (after-tax returns)
Scenario B: Optimized Tax Strategy
- Earns $120,000 gross
- Sacrifices $10,000 to super (saves $3,750 in tax)
- Uses tax savings + post-tax surplus to invest an extra $13,750 in super
- Harvests losses each year, offsetting gains
- Claims home office and professional deductions ($3,000/year)
- By age 65: $765,000 in super (tax-sheltered at 15%)
The difference: $345,000 (82% more wealth) from strategic tax planning. This assumes a 7% annual return and no behavioral changes. In reality, people who deliberately tax-optimize often spend discipline improves, leading to even larger wealth outcomes.
Model your own scenario: Use our FIRE calculator to project the impact of salary sacrifice and investment strategies on your own wealth trajectory.
June 30 Action Checklist
Here's what to do before June 30:
- ☐ Review your income: Can you sacrifice $5k-$10k to super? Confirm caps and employer contributions.
- ☐ Check investment portfolio: Realize losses to offset gains. Ensure 30-day wash sale buffer if buying back.
- ☐ Gather deductions: Home office hours, professional fees, equipment purchases, travel records.
- ☐ Spousal contribution: If applicable, contribute to spouse's super and claim deduction.
- ☐ Charitable donations: If you plan to donate, do so by June 30 to claim this year.
- ☐ Contact your accountant: Review your salary sacrifice arrangement and max out your contribution cap safely.
Frequently Asked Questions
Can I still salary sacrifice after June 30?
No. Salary sacrifice must be arranged before June 30 to count toward the current financial year. If you arrange it in July, it applies to the next financial year (July 2027 onwards).
What if I exceed the contribution cap?
Excess concessional contributions are added to your assessable income and taxed at your marginal rate (up to 47% including the Medicare levy). For example, if a top-bracket earner contributes $500 over the $32,500 cap, they'll owe about an extra $235 in tax. The ATO will notify you after tax time.
Can I claim losses from my home loan offset account?
No. Capital losses only apply to investments (shares, ETFs, investment property). Money sitting in your offset account isn't generating investment income, so losses don't apply.
Is the 30-day wash sale rule law in Australia?
No, there's no formal 30-day wash sale rule in Australia like the US. However, the ATO scrutinizes transactions that appear designed solely to create artificial losses. Waiting 30 days or buying a different security is the safest approach.
What if I didn't salary sacrifice this year—can I catch up?
Not for this year. But you can catch up by claiming the deduction on your tax return if you contributed from your own post-tax income. For example, if you contributed $5,000 personally (not via salary sacrifice), you can claim a deduction on your tax return and receive a refund.