Overview

The 2025 tax year ends on 30 June 2025, and therefore, it is essential for high-net-worth individuals to plan well in advance to ensure that all available tax minimisation opportunities are utilised. Early tax planning enables you to maximise your wealth while complying with prevailing Australian tax laws.

Personal Income Tax Rates

Taxable Income ($AUD) FY 2025 FY 2026 FY 2027 (proposed)
$0 – $18,200 Nil Nil Nil
$18,201 – $45,000 16% 15% 14%
$45,001 – $135,000 30% 30% 30%
$135,001 – $190,000 37% 37% 37%
$190,001 and above 45% 45% 45%

Note: Medicare Levy of 2% applies in addition to the above marginal tax rates.

 

Income Deferral Opportunities

There are no legislated changes to the tax rates for the 2025 and 2026 tax years. As a result, deferring income to 2026 may not lead to any overall tax savings, though timing advantages may still be beneficial depending on your circumstances, If you’re a company director, business owner, or an investor, following income streams if appropriate:

  • Performance-based bonuses
  • Franked dividends from private companies
  • Realisation of capital gains (sale of shares, investment property, etc.)
  • Cryptocurrency disposals

Please don’t forget to report your crypto transactions, preferably via a software such as Cryptotax and Airbnb types of income.

Important: Ensure that deferral strategies do not trigger anti-avoidance rules (e.g. Part IVA of the Income Tax Assessment Act 1936), such as ‘Wash Sales’.

 

Timing of Deductions & Expenses

The following deductible expenses should be reviewed and, where possible, paid before 30 June 2025:

For Employees:

  • Work-related expenses, including tools, uniforms, professional memberships
  • Motor-vehicle expenses (
  • Work-from-home expenses (as per the current ATO fixed-rate or actual-cost method)
  • Self-education expenses directly related to your current occupation
  • Donations to registered deductible gift recipients (DGRs)
  • Income protection insurance premiums

For Property Investors:

  • Repairs and maintenance
  • Strata levies
  • Landlord insurance
  • Prepaid interest on investment loans (up to 12 months)
  • Other property expenses

Talk to an expert consultant at Australian Accountants at (02) 9415 1118 or www.australianaccountants.com.au if you require detailed advise on how to maximise your tax refund.

Superannuation Contributions

Maximising concessional (deductible) superannuation contributions can be an effective tax planning tool. For the 2024–25 financial year:

  • The standard concessional contributions cap is $30,000
  • If you have unused cap amounts from prior years (since FY 2019) and a total super balance under $500,000, you may be eligible for catch-up contributions

Concessional contributions are taxed at 15% in the fund, which is generally lower than your marginal tax rate (up to 45% + Medicare).

You should seek financial advice from an ASIC-licensed financial adviser to confirm whether additional contributions are appropriate for your individual circumstances.

 

Other Tax Minimisation Tips

Salary Sacrifice Arrangements:

Speak to your employer about salary packaging for the upcoming financial year (2025–26), as an effective salary packaging agreement is required to be in place in advance. Potential inclusions:

  • Additional superannuation contributions
  • Novated vehicle leases
  • Professional subscriptions or memberships
  • Gym or wellness benefits, if allowed under your employer’s fringe benefits policy

Sole Proprietors, Business Owners, and PSI Income:

If you operate a business or earn Personal Services Income (PSI), we recommend reviewing our blog:
“Individuals – Are You Running a Business or Earning PSI?”

Final Notes

  • All strategies should be implemented before 30 June 2025.
  • Ensure that your record-keeping is up to date and all deductions are properly substantiated with receipts and have a nexus with the income earned.
  • Tax planning should be conducted in consultation with your tax adviser and financial planner.

Talk to an expert consultant at Australian Accountants at (02) 9415 1118 or www.australianaccountants.com.au if you require detailed advise on how to maximise your tax refund. You should not rely on this information, which is of general nature, as your particular circumstance may require tailored tax planning advise.