While the most important point may be marking your EOFY lodgement deadlines in the calendar (remembering individual and company dates are different), there are also other points to consider, and it pays to be organised before June 30. Sharon Shen, one of dmca’s senior accountants, discusses how to make the most of EOFY by pre-paying legitimate expenses for 2023/24 to bring some deductions forward. Here are her key points.

Work expenses

If you have legitimate work expenses that are incurred after July 1, 2023, such as subscriptions or professional membership fees, consider bringing them forward by paying them in June to increase the deductions. You can also claim the immediate deduction for the assets that cost $300 or less in the year that expenses incurred.

Tax deductible donations

Planning to give to charity? You can claim a deduction of a donation made to deductible gift recipients (DGR) as long as the amount is more than $2. However, remember any gift or donation that provides you with a personal benefit or something in return, such as the Home Lottery raffle tickets, is not tax deductible.

Personal superannuation contributions

If you make a personal superannuation contribution to a super fund, you may be able to claim the contribution as a tax deduction in your personal income tax return to reduce your taxable income and to increase your tax refund. You need to start this early to have the paperwork in place before June 30. Please be aware that there are certain caps applied. It may be beneficial to review unused carried forward concessional contributions as this may give you a sizeable contribution above the annual concessional contribution cap, which is currently $27,500.

Investment loans

If you have a loan for any investments, prepay the interest for the next 12 month before 30 June to claim the tax deduction.

Investment properties

Rental losses incurred during the financial year can be offset against other income such as salary, to reduce taxable income for the financial year and the tax liability – and if there is repair work that needs to be done for the investment property, remember to bring them forward to June to claim a deduction this financial year.

If you have any questions on your eligibility for tax deductions, please contact Sharon or your adviser at dmca.