The $127,000 Question: End of Financial Year Tax Strategies for High-Income Australians

June 30 is the biggest deadline in Australian wealth management. Not because it’s complicated. Because it’s final.

Miss June 30, and you can’t make 2025-26 super contributions. Can’t claim 2025-26 deductions. Can’t implement strategies that could have saved $20,000, $50,000, or even $100,000 in tax.

High-income Australians face the highest marginal tax rates (47% over $180,000) combined with the most opportunities for tax optimisation. The gap between what you pay without planning and what you pay with planning is material.

This isn’t aggressive tax schemes or grey-area structures. This is using legislated contribution caps, deductions, concessions, and timing strategies that high-income earners typically underutilise because they focus on earning rather than structuring.

Here’s what you should review before June 30, 2026.

Superannuation Strategies: The $127,000 Opportunity

Super contributions remain the single most effective tax strategy for high-income earners. The numbers are compelling.

Concessional contributions cap: $30,000

Every dollar you contribute to super as concessional (salary sacrifice, employer contributions, personal deductible) gets taxed at 15% instead of your marginal rate.

If you earn $250,000, your marginal rate is 47% (45% plus 2% Medicare Levy). Contributing $30,000 to super:

• Saves you $14,100 in personal tax (47% on $30,000)
• Costs $4,500 in super contributions tax (15% on $30,000)
• Net tax saving: $9,600

That’s a guaranteed 32% immediate return on that capital through tax savings alone, before any investment returns.

Most high-income earners receive $20,000-25,000 employer super. That leaves $5,000-10,000 unused concessional cap space. Salary sacrificing that remaining cap space costs nothing – it’s redirecting income you’d otherwise pay 47% tax on.

Carry-forward concessional contributions

If your total super balance is under $500,000 on June 30, 2025, you can access unused concessional cap space from previous years (back to 2018-19).

If you didn’t max out contributions in prior years, you might have $40,000, $60,000, even $120,000 of accumulated unused cap space.

Example: Your super balance is $450,000. You’ve contributed $20,000 annually for the past 5 years (employer contributions only). Your unused cap space is $50,000 ($10,000 x 5 years). You can contribute up to $80,000 this year ($30,000 current year + $50,000 carry-forward).

At 47% marginal rate, an $80,000 contribution saves $25,600 in tax (32% effective rate benefit). That’s real money.

Check your super balance and contribution history. If you’re under $500,000 and have unused cap space, use it before June 30.

Non-concessional contributions cap: $120,000 (or $360,000 bring-forward)

Non-concessional contributions don’t provide immediate tax deductions, but they allow substantial capital to enter super’s tax-advantaged environment.

Inside super, investment earnings are taxed at 15% (accumulation) or 0% (pension phase). Outside super, you pay 47% on investment earnings.

If you have $120,000 sitting in a savings account earning 2% ($2,400 annually), you’re paying $1,128 tax on that interest (47% rate). Move it to super, and you pay $360 tax (15% rate). That’s $768 annual tax savings for the same investment.

Compounded over 20 years, that’s $15,000+ in tax saved on the same capital.

Non-concessional contributions are post-tax money, so you need cash available. But if you’ve got surplus cash in low-return investments outside super, shifting it to super before June 30 starts the tax-advantaged compounding immediately.

Bring-forward rule: If you’re under 75 and your super balance is under $1.76 million (at 30 June 2025), you can bring forward up to three years of non-concessional caps and contribute $360,000 in one year.

This accelerates super growth dramatically. $360,000 compounding at 7% return with 15% tax for 15 years grows to $788,000. The same $360,000 compounding outside super at 47% tax grows to $510,000. That’s $278,000 additional wealth from tax savings alone.

Spouse contribution strategy

If your spouse earns under $40,000, you can contribute up to $3,000 to their super and receive a tax offset of up to $540.

The spouse contribution must be made before June 30 to claim the offset in your 2025-26 tax return.

This works particularly well for couples where one partner has taken career breaks, works part-time, or runs a business with variable income.
$3,000 contribution costs you $2,460 net (after $540 tax offset). Your spouse receives $3,000 in super. You’ve shifted wealth to their super (improving death benefit tax outcomes), reduced your tax, and accelerated household super growth.

Contribution splitting

You can split up to 85% of concessional contributions to your spouse’s super. This doesn’t save tax immediately, but it balances super between partners.

Why this matters: if you die with $2.5 million super and your spouse has $200,000 super, your super exceeds the transfer balance cap ($2 million from 1 July 2025). Contribution splitting during accumulation years keeps both partners under the cap, avoiding excess super tax issues later.

It also improves age pension eligibility if that’s relevant and provides asset protection in relationship breakdowns (each partner has their own super).

Property Investment Strategies: Maximise Deductions

If you own investment property, several strategies amplify tax deductions before June 30.

Prepay 12 months’ interest

If your investment property is negatively geared, you can prepay up to 12 months of interest in advance and claim the full deduction in 2025-26.
Investment loan at 6.5% on $500,000 debt = $32,500 annual interest. Prepaying 12 months gives you a $32,500 deduction this year instead of spreading it across 2026-27.

At 47% marginal rate, that’s $15,275 tax savings brought forward. If you’re expecting lower income next year (business downturn, career break, semi-retirement), prepaying deductions into the high-income year maximises value.

Bring forward repairs and maintenance

Repairs (fixing existing issues) are immediately deductible. Capital improvements (adding value or functionality) must be depreciated over years.

Repairing a leaking roof: immediately deductible. Replacing the entire roof with superior materials: capital improvement, depreciated.

If you have repairs needed, complete them before June 30 for immediate deduction. If you’re planning capital improvements, consider deferring to the next financial year if your income will be similar (spreading the tax benefit).

Review depreciation schedules

Depreciation on building (capital works at 2.5% annually) and plant/equipment (various rates) provides non-cash deductions that reduce taxable income.

If you bought investment property in recent years and haven’t obtained a quantity surveyor’s depreciation schedule, you’re leaving deductions unclaimed.

A typical property might have $10,000-15,000 in annual depreciation claims. At 47% marginal rate, that’s $4,700-7,000 annual tax savings for an expense you don’t actually pay (depreciation is non-cash).

Get depreciation schedules done before June 30 so you can claim 2025-26 deductions.

Timing property sales

If you’re selling investment property, timing the settlement date affects which year you recognise capital gain.

Settle before June 30: capital gain (or loss) is 2025-26. Settle after June 30: capital gain (or loss) is 2026-27.

If you have capital losses available or expect a lower income next year, deferring settlement to 2026-27 might reduce overall tax. If you have a high income this year and a lower income expected next year, the same strategy applies.

Conversely, if you expect a higher income next year, recognising the capital gain in 2025-26 at the current marginal rate might be preferable.

Settlement timing is negotiable in property contracts. Build flexibility if tax timing matters.

Business Owner Strategies: Amplify Deductions

Business owners have additional levers that high-income employees don’t.

Instant asset write-off

Current threshold allows businesses to immediately deduct assets costing under certain amounts (threshold varies based on budget announcements – typically $20,000 for small businesses in 2025-26).

If you’re buying business equipment, vehicles, technology, or other assets, purchasing before June 30 allows immediate deduction rather than depreciating over the years.

$20,000 equipment purchased June 29: $20,000 immediate deduction, $9,400 tax saved (47% rate). $20,000 equipment purchased July 2: depreciated over years, $2,500 first-year deduction, $1,175 tax saved.

Timing matters for assets you’re buying anyway. Don’t buy unnecessary assets for tax deductions (spending $1 to save $0.47 is still losing $0.53), but if you’re buying anyway, buy before June 30.

Prepay expenses

Businesses can prepay up to 12 months of expenses and claim immediate deductions: insurance, rent, subscriptions, memberships, software licenses, and professional fees.

Prepaying $24,000 in annual expenses gives you a $24,000 deduction this year instead of $2,000 monthly next year.

At 47% rate, that’s $11,280 tax savings brought forward. Cash flow is negative (you’re paying now), but the tax benefit is immediate.

This works best when you have strong cash flow this year and want to reduce taxable income, or when you expect lower income next year.

Superannuation contributions via the company

Business owners can contribute to their super as concessional contributions through the company, reducing company taxable income while building personal super.

A company with $200,000 taxable income pays $60,000 company tax (30%). Contributing $30,000 to the owner’s super reduces the company’s taxable income to $170,000, company tax to $51,000.

The $30,000 goes to your super (taxed at 15% = $4,500), net benefit is $30,000 – $4,500 = $25,500 to super.

Alternative: pay $30,000 as salary, taxed at 47% = $14,100, net benefit $15,900.

Contributing via the company saves $9,600 in tax ($25,500 vs $15,900 net benefit).

This requires meeting concessional cap limits and ensuring employer contribution rules are followed, but it’s extraordinarily tax-effective for business owners.

Director fees and dividends timing

Timing when you declare director fees or pay dividends affects which year income is recognised.

Declare director fees June 30: income is 2025-26. Declare director fees July 1: income is 2026-27.

If you’re expecting lower income next year, deferring director fees to 2026-27 means they’re taxed at lower marginal rate.

Franked dividends have similar timing considerations. Paying franked dividends before June 30 brings franking credits into 2025-26 return. Paying July 1 defers to 2026-27.

Match timing to your tax planning needs.

Investment Portfolio Strategies: Tax-Loss Harvesting

If you hold shares, ETFs, or managed funds outside super, capital gains and losses create tax management opportunities.

Tax-loss harvesting

Sell investments sitting in loss positions to crystallise capital losses. Use those losses to offset capital gains elsewhere in the portfolio.

Example: You sold investment property this year with $100,000 capital gain (after 50% CGT discount). You owe tax on $100,000 at 47% = $47,000.

You hold shares currently worth $80,000 that you bought for $120,000. Sell them before June 30, realise $40,000 capital loss.

Capital loss offsets capital gain: $100,000 gain – $40,000 loss = $60,000 net gain. Tax is now $28,200, saving $18,800.

You can buy back similar shares after June 30 (or buy different shares immediately) to maintain market exposure. The tax saving is real.

Wash sale rules

Australia doesn’t have strict wash sale rules like the US. You can sell shares for tax-loss harvesting and buy them back immediately without losing the tax loss.

However, ATO watches for schemes where you sell to family members or related parties to create artificial losses. Keep it legitimate: sell on market, buy back on market.

Dividend timing

Some shares have ex-dividend dates in late June. If you buy before ex-dividend date, you receive the dividend (and franking credits) in 2025-26 tax year. If you buy after, dividend comes in 2026-27.

Franking credits are valuable for high-income earners – they reduce tax on dividend income. Timing share purchases around ex-dividend dates can optimise when you receive franking credits.

This is marginal optimisation, but for large portfolios, it adds up.

Rebalancing tax-effectively

If you’re rebalancing portfolio (selling overweight positions, buying underweight), do it before June 30 to crystallise gains or losses in 2025-26.

Combining rebalancing with tax-loss harvesting means portfolio adjustments serve dual purposes: improving allocation and reducing tax.

Charitable Giving: Maximise Deductions

Donations to deductible gift recipients (DGRs) are tax-deductible. High-income earners can save 47% on donation amounts.

Timing donations

$10,000 donation to registered charity made June 30: $4,700 tax saving in 2025-26. $10,000 donation made July 1: $4,700 tax saving in 2026-27.

If you’re planning charitable giving anyway, timing it before June 30 brings tax benefit forward.

Private Ancillary Funds (PAFs)

For high-income earners giving $100,000+ over time, PAFs provide structure.

Contribute large amounts in high-income years, claim immediate deduction, then distribute to charities over time.

Example: Sell business for $2 million, realising large capital gain.

Contribute $200,000 to PAF, claim $200,000 deduction (saving $94,000 tax at 47% rate). PAF distributes to charities over next 10 years.

You’ve reduced tax in the high-income year, and maintained ongoing charitable giving.

PAFs have setup and ongoing costs, so they suit substantial ongoing giving rather than one-off donations.

Workplace giving

Some employers offer workplace giving programs – pre-tax donations deducted from salary.

$1,000 annual giving via workplace program costs you $530 after-tax (tax saved at 47% rate). $1,000 donated personally costs you $1,000, then you claim $470 back at tax time.

Workplace giving provides immediate tax benefit rather than waiting for tax return. Minor difference, but convenient.

Division 296: The $3 Million Super Tax

Critical Update: Division 296 passed into law in March 2026 and commences 1 July 2026.

From 1 July 2026, earnings on super balances exceeding $3 million are taxed at an additional 15% (total 30% in accumulation, 15% in pension phase). A further 10% applies to balances exceeding $10 million (total 40% in accumulation, 25% in pension phase).

Key changes from original proposal:

• Only applies to realised gains (not unrealised gains – major improvement)
• Thresholds are indexed (in $150k increments for $3M, $500k for $10M)
• First assessments after 30 June 2027 (2026-27 financial year)

If your super balance is approaching $3 million or exceeds it, planning matters.

Contribution strategies

If you’re under $3 million, maximising contributions builds super quickly, but watch for crossing the threshold in the coming years.

If you’re over $3 million, consider whether additional contributions make sense given the higher tax rate on excess.

Withdrawal strategies

Members over preservation age (60) with balances above $3 million might consider withdrawing excess above $3 million to personal names or trusts, avoiding the Division 296 tax.

Super above $3 million taxed at 30% on earnings might be less tax-effective than investments in a personal name with 47% marginal rate, depending on investment type and franking credits.

Recontribution strategies

Withdraw tax-free components from super, hold personally, then recontribute as non-concessional when balance drops below $3 million.
This manages balance to stay under threshold while maintaining overall super strategy.

Division 296 is complex and everyone’s situation differs. If your balance is $2.5M+, model Division 296 impact before June 30.

What To Do This Week

You have days, not weeks. Here’s your action list:

Review super contributions: Check concessional contributions year-to-date. If you have unused cap space, salary sacrifice before final pay run. If you have carry-forward available (balance under $500,000), maximise contributions.

Check non-concessional contributions: If you have cash earning low returns outside super, consider moving to super as non-concessional before June 30.

Property investors: Review prepayment opportunities (interest, repairs), ensure depreciation schedules are current, consider settlement timing if selling.

Business owners: Check instant asset write-off eligibility, prepay deductible expenses, review super contribution opportunities via company.

Investment portfolios: Review unrealised losses, consider tax-loss harvesting to offset gains, rebalance tax-effectively.

Charitable giving: If you’re donating anyway, do it before June 30 for 2025-26 deduction.

Division 296 planning: If super balance exceeds $2.5M, model Division 296 impact and consider strategies.

June 30 is final. Implement before deadline or wait another 12 months.