EOFY 2025: Key Financial Strategies for Investors and Homeowners
As the 2024–25 financial year draws to a close, it's crucial for investors, mortgage holders, and individuals to assess their financial strategies. The End of Financial Year (EOFY) presents opportunities to maximise tax benefits, enhance investment returns, and ensure your financial plans align with your long-term goals.
Superannuation Contributions: Maximise Your Retirement Savings
The concessional contributions cap for the 2024–25 financial year is $30,000. Making additional contributions before 30 June 2025 can reduce your taxable income and bolster your retirement savings. Be mindful of fund-specific cut-off dates for personal super contributions. Here are three listed below:
· Australian Retirement Trust (ART): ART recommends making contributions by 3:00 PM AEST on Monday, 23 June 2025, to ensure they are received and processed before the end of the financial year.
· MyNorth: For MyNorth Super and Pension accounts, personal contributions via BPAY or direct credit should be submitted by 5:00 PM AEST on Friday, 27 June 2025, to ensure processing within the 2024/25 financial year.
· Colonial First State (CFS): CFS advises that personal contributions made via EFT or BPAY should be received by 3:00 PM AEST on Tuesday, 24 June 2025, to guarantee processing before 30 June.
Additionally, consider non-concessional contributions, which have a cap of $120,000 for the year. If you're eligible, the bring-forward rule allows you to contribute up to $360,000 over three years.
Investment Property Owners: Leverage Tax Deductions
For those with investment properties, EOFY is an opportune time to review potential tax deductions. Expenses such as loan interest, property management fees, maintenance costs, and depreciation can be claimed. Obtaining a tax depreciation schedule can help identify eligible deductions, potentially reducing your taxable income.
Mortgage Holders: Review and Refinance
With interest rates experiencing fluctuations, reviewing your mortgage terms is advisable. Refinancing could lead to more favourable rates, reducing monthly repayments and overall interest paid. Additionally, maintaining higher repayments, even if your rate decreases, can accelerate loan repayment and save on interest over time.
Capital Gains and Investment Portfolio Review
If you've sold assets such as shares or property during the financial year, assess any capital gains or losses. Offsetting gains with losses can minimise capital gains tax liabilities. Reviewing your investment portfolio also ensures it aligns with your risk tolerance and financial objectives.
Charitable Donations: Enhance Your Tax Position
Donations of $2 or more to registered charities are tax-deductible. Ensure you have receipts for any contributions made during the year to claim these deductions.
Key EOFY Deadlines to Remember
· 23 June 2025 – Recommended deadline for personal super contributions to ensure they’re processed before 30 June. Check your fund's cut-off for specific timelines.
· 30 June 2025 – Official end of the 2024–25 financial year.
· 14 July 2025 – Deadline for employers to finalise Single Touch Payroll (STP) reporting with the ATO.
· 28 July 2025 – Due date for Superannuation Guarantee contributions for Q4 (April–June) to avoid penalties.
EOFY is more than just a compliance deadline; it's an opportunity to optimise your financial position. By proactively reviewing your superannuation contributions, investment properties, mortgage terms, and overall financial strategy, you can set the stage for a prosperous new financial year.
At Advice HQ, we're here to help you navigate EOFY complexities and tailor strategies to your unique circumstances.
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Note: This article draws on market insights and publicly available commentary from a range of professional sources. It is provided for general information purposes only and does not constitute personal financial advice. Please speak to your Advice HQ adviser to discuss your individual circumstances.