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As June 30 approaches, it’s time to take stock of your tax position, identifying opportunities to reduce your tax bill while staying alert to areas the ATO is scrutinising this year. Here’s a breakdown of what’s worth your attention.
Superannuation Strategies: Maximise Your Contributions
If your total super balance on 30 June 2024 was under $500,000, you may be able to use unused concessional cap amounts from the past five years to make additional deductible contributions before 30 June.
That means you could potentially top up your super and claim an extra deduction this year — a valuable tool if you’ve had a capital gain or expect a larger-than-usual tax bill.
If your spouse’s income is below $37,000, consider contributing to their super to claim a tax offset of up to $540.
Tip: Make sure to lodge your notice of intent to claim a deduction with your super fund and receive their acknowledgment before submitting your tax return.
Charitable Giving: Tax-Deductible and Purpose-Driven
Donations of $2 or more to registered deductible gift recipients (DGRs) are tax-deductible, but timing and structure matter.
For those with a strong philanthropic focus, you might consider contributing to a public ancillary fund or even establishing a private ancillary fund. This allows you to claim an immediate deduction while spreading donations to charities over time — a great way to give strategically.
Investment Property Owners: Deductions and Common Pitfalls
Depreciation schedules can make a big difference for landlords, helping you claim deductions for wear and tear on your investment property.
However, the ATO is closely monitoring incorrect claims, especially when:
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A property is used by family or friends,
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The rental rate is inflated or unrealistic, or
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Interest deductions include personal spending portions of loans.
Be clear on what counts as repairs and maintenance (deductible immediately) versus capital improvements (deducted over time). Repairs restore; improvements enhance.
Work from Home Claims: Evidence Is Everything
The ATO has made it clear — estimates won’t cut it.
You can claim either:
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Fixed-rate method (70c/hour) covering utilities, phone, internet and stationery, or
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Actual cost method, requiring detailed records and receipts.
To avoid penalties, keep a log of hours worked from home and evidence of expenses.
Gig Economy and Side Hustle Income
Whether it’s Airbnb, Uber, or YouTube — if you’re earning money through platforms, it’s taxable income.
From 1 July 2023, ride-share and short-term accommodation platforms began reporting transactions to the ATO, with all other sharing economy platforms joining from 1 July 2024.
If you haven’t declared income from these sources — now’s the time to fix it before the ATO does it for you (with penalties).
Business Owners: Key Opportunities Before 30 June
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Write off bad debts: If it’s clear you won’t be paid, write off the amount by 30 June to claim a deduction.
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Scrap obsolete assets: Remove unused plant and equipment from your depreciation schedule.
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Bring forward deductions: Declare director fees and staff bonuses, and pay June super contributions in June.
Need a Second Pair of Eyes Before 30 June?
EOFY planning is about more than deductions — it’s about being proactive, compliant and strategic.
If you’d like to review your tax position, ensure your structures are working effectively, or make the most of available opportunities, book a meeting with Strategic 360 today.
Read more in this month’s Newsletter.
Kerrily and Louise – Directors
