End-of-financial-year checklist for high-income earners: 12 strategies before 30 June

June is the month where proactive planning separates those who manage their tax from those who simply pay it. For high-income earners — particularly those on incomes above $180,000 or with investment portfolios, trusts, or business structures — the weeks before 30 June represent the most concentrated window of opportunity in the financial calendar.

Below are 12 strategies we review with every client in the lead-up to the end of the financial year. Not all will apply to your situation, but if even two or three are relevant, the cumulative impact on your tax position can be substantial.

1. Maximise Concessional Super Contributions

The concessional contributions cap for 2024–25 is $30,000. This includes employer Superannuation Guarantee (SG) contributions, salary sacrifice, and personal deductible contributions. If you are on a marginal rate of 37% or 45%, every dollar contributed to super is taxed at 15% instead — an immediate saving of 22 or 30 cents per dollar.

Check your year-to-date contributions with your super fund and calculate the gap. If there is room, make a personal contribution before 30 June and submit a Notice of Intent to Claim a Deduction (section 290-170) to your fund before lodging your tax return or before the end of the following financial year.

2. Use Carry-Forward Concessional Contributions

If your total super balance was below $500,000 on 30 June 2024, you may be able to carry forward unused concessional cap amounts from the previous five financial years. This can allow contributions well above the standard $30,000 cap in a single year — potentially up to $150,000 if no concessional contributions were made over the prior five years.

This strategy is particularly powerful for individuals who have had variable income, taken career breaks, or recently returned to high-income employment. It effectively allows you to "catch up" on years of missed contributions in one hit.

"Carry-forward contributions are one of the most underutilised strategies in Australian super. Many clients have tens of thousands in unused cap space sitting there — they just don't know it."

3. Make Non-Concessional Contributions Strategically

The non-concessional contributions cap is $120,000 per year (or up to $360,000 under the three-year bring-forward rule if you are under 75 and your total super balance is below $1.66 million). Non-concessional contributions do not provide an upfront tax deduction, but they move capital into the superannuation environment where earnings are taxed at a maximum of 15% — or zero in the pension phase.

If you have surplus cash or liquid investments outside super and your total super balance permits it, consider contributing before 30 June. The key threshold to watch: if your total super balance exceeds $1.9 million on 30 June, you cannot make any non-concessional contributions in the following financial year.

4. Harvest Capital Gains Tax Losses

Review your investment portfolio for unrealised capital losses. If you hold investments that are sitting at a loss, selling them before 30 June crystallises that loss, which can be offset against any capital gains realised during the year. This is known as tax-loss harvesting.

The rules are straightforward: capital losses must be offset against capital gains in the same financial year before any net loss is carried forward. You cannot offset capital losses against ordinary income. Be mindful of the "wash sale" provisions — the ATO may deny the loss if you repurchase a substantially identical asset shortly after selling.

5. Defer Capital Gains Where Possible

Conversely, if you are planning to sell an asset at a profit, consider whether the sale can be delayed until after 1 July. This pushes the capital gain into the next financial year, deferring the tax liability by up to 12 months. For large gains, this can also spread income across two financial years, potentially keeping you in a lower marginal tax bracket.

If you have held the asset for more than 12 months, you are entitled to the 50% CGT discount — ensure the 12-month holding period is met before any sale.

6. Prepay Deductible Expenses

Certain expenses can be prepaid before 30 June and claimed as a deduction in the current financial year. Common prepayable expenses include:

• Interest on investment loans — you can prepay up to 12 months of interest before 30 June and claim the deduction this year
• Income protection insurance premiums — if you hold a policy outside super, the premiums are tax-deductible
• Investment management fees — where charged directly (not embedded within a fund's unit price)
• Professional subscriptions and memberships — if relevant to your employment or profession

For expenses above $1,000, the prepayment rules under Division 70 of the ITAA 1997 apply. In most cases, individual taxpayers can claim an immediate deduction for prepaid expenses covering a period of 12 months or less that ends in the following financial year.

7. Review Your Insurance Structures

Where you hold your insurance matters for tax purposes. Income protection insurance premiums paid personally are fully tax-deductible. Life insurance and total and permanent disability (TPD) cover held inside super are funded from concessional contributions, effectively making them tax-deductible at your marginal rate.

If your insurance arrangements have not been reviewed in the past two years, now is the time. Ensure you are not paying for duplicate cover, that your sum insured reflects your current circumstances, and that the structure is tax-optimal.

8. Finalise Trust Distribution Resolutions

If you are a beneficiary of a discretionary (family) trust, the trustee must resolve how the trust's income will be distributed before 30 June. Failure to make a valid resolution by this date can result in the trustee being assessed at the top marginal tax rate on the entire net income of the trust.

Distribution planning should consider each beneficiary's taxable income, marginal tax rate, and eligibility (particularly for minor beneficiaries, where the penalty tax rates under Division 6AA are severe). Where the trust has realised capital gains, those gains can be specifically allocated to beneficiaries who can best utilise the 50% CGT discount or who have carried-forward capital losses.

9. Salary Packaging and Structuring

If your employer offers salary packaging arrangements, review what is available before the end of the FBT year (31 March) and the income year (30 June). Common packaging items include:

• Novated vehicle leases — which can reduce your taxable income through a combination of pre-tax and post-tax deductions
• Additional superannuation contributions — salary sacrificed amounts reduce your assessable income
• Portable electronic devices — primarily used for work purposes
• Professional development and training — where the expense is work-related

For high-income earners, the most impactful packaging strategy remains maximising salary sacrifice into superannuation, given the 15% concessional tax rate versus your marginal rate of 37% or 45%.

10. Charitable Donations and Deductible Gift Recipients

Donations of $2 or more to organisations registered as Deductible Gift Recipients (DGRs) are tax-deductible. For high-income earners considering charitable giving, concentrating donations before 30 June maximises the tax benefit in the current financial year.

If your charitable intentions are ongoing, consider establishing a Private Ancillary Fund (PAF). You receive an immediate tax deduction for contributions to the fund and can then distribute grants to eligible charities over time. A PAF requires a minimum corpus of $500,000, so it is suited to those with substantial charitable intent and the means to fund it.

11. Investment Timing: Dividends, Distributions, and Settlements

Be aware of the timing of investment income around year-end. Managed fund distributions are typically paid in late June or early July — the date of the distribution determines which financial year it falls into for tax purposes. If you are considering purchasing units in a managed fund, buying just after the end-of-year distribution (rather than just before) avoids being taxed on gains you did not economically benefit from.

Similarly, if you are selling property or other assets, the CGT event occurs at the time of contract, not settlement. Exchanging contracts before 30 June will crystallise the gain (or loss) in the current financial year, regardless of when settlement occurs.

"The difference between exchanging contracts on 29 June and 2 July can be a full financial year of tax deferral. For a $200,000 capital gain at the top marginal rate, that is worth $47,000 in time value."

12. Review and Update Your Financial Plan

Finally, the end of the financial year is an ideal checkpoint to review your broader financial plan. Markets move, laws change, and personal circumstances evolve. Key questions to consider:

• Has your income changed materially this year? If so, are your contribution strategies still optimal?
• Have you experienced a significant life event — marriage, divorce, birth of a child, inheritance — that affects your planning?
• Are your estate planning documents (will, powers of attorney, superannuation binding nominations) current?
• Is your asset allocation still aligned with your risk tolerance and retirement timeline?
• Are you on track to meet your retirement income goals?

A comprehensive annual review ensures that all 11 strategies above are implemented within the context of your long-term plan — not as isolated tax moves, but as coordinated steps toward your financial objectives.

The Bottom Line

For high-income earners, the weeks before 30 June represent the sharpest concentration of planning opportunity in the year. The strategies outlined above are not aggressive or exotic — they are the fundamental building blocks of sound tax and financial planning. But they require action, and they require it before the deadline.

If you have not yet sat down with your adviser to review your position, the time is now. Every week of delay narrows your options and reduces the potential benefit.