CIA’s June 30 – Tax Saving Tips!!
Always a big newsletter – and thank you to those that attended the cost-of-living tax time saving annual Kingston Arts tax saving seminar last week.
Click Here to view the tax saving session: https://www.youtube.com/watch?v=WBvtiwXCrcg
Included in the recording are plenty of tips and traps around negative gearing, trust distributions,
capital gains tax changes stemming from the biggest budget changes since GST was introduced
way back in 1999.
For employees and Employers alike
Payday Super: Starting 1 July 2026, employers are legally required to pay super contributions on
the same day they pay their employees’ wages. Keep an eye on your superfund balances to
ensure this is happening and if you are in business paying wages and you have yet automated
this contact us today for assistance in doing so. There is a bit of ATO discretion in first few
months of implementation. But let’s get it right from day 1.
Small wins but lowest Marginal rate drops to 15% from 1 July 2026
The ATO app is the best way to secure your ATO account (lock ATO account from fraud, verify
ATO calls) – https://www.ato.gov.au/online-services/online-services-for-individuals-and-sole-traders/ato-app
For people with a HECS-HELP debt
Yes, we remind you of this every year … Make sure you have it as a diary entry reminder weeks
beforehand! “If you are trying to pay off or pay down your debt a little faster, do it several days ahead
of the 1st of June indexation date each year and save on some accrued interest”
Be Generous
Making tax deductible donations in June is the best time to do so as you’ll soon see the tax
benefit from your generosities.
We at CIA tax certainly do every single June.
For Business
The maximum instant asset write off level is set at $20,000 for small/medium businesses
(under $10m turnover) so if you have had a good year and you need a new asset for the business
do so before June 30.
Prepay your expenses before June 30 when you can and don’t be too hasty getting out your
invoices prior to June 30 even more so if it’s been a great income year.
Stocktakes can be counted on Cost price, Replacement Price or even Actual values which is one
of our greatest tax planning tools for those that carry stock.
Your job is to get counting and let us work out the best planning methods to use.
For Companies
We are improving our systems and have moved company management software to assist with
compliance and efficiency.
From July, future ASIC statements will be sent directly through this software from (no longer in
the mail) ADMIN@CIATAX.COM.AU , as will reminders, so please keep an eye out for your
EMAILED reminders and annual review statements.
Working from home changes
A record of all the hours you worked from home is required an area of audit they are focused on.
Fixed Rate Method:
70 cents per hour for every hour worked from home.
inclusion of phone and internet expenses as well as electricity and gas usage, computer
consumables and stationery costs all in that per hour rate.
taxpayers will now separately claim the decline in value of work-related equipment, office
furniture, and any other running expenses not covered by the rate per hour.
Actual Cost Method
We do have the option of claiming the actual costs for home office, which will allow for phone and
internet to be claimed separately, however we would then need calculations for the costs for electricity
and gas or we could simply ignore them.
You don’t incur additional running expenses if other members of your household (who are not working
from home) are in the same rooms as you while you are working from home.
ATO Example: Working from a lounge room
Lee works from her lounge room while her partner and 3 children watch television. Lee isn’t incurring
any additional costs for lighting, heating, or cooling as a result of working in that room, so she can’t
claim a deduction for them.
ATO Example: Electricity for cooling and heating
Ben works at home several days per week and keeps a record of the total hours he works from home.
His record shows he worked a total of 768 hours from home in 2022–23. When he works from home,
Ben sits in a separate room of his house and always uses a separate air conditioner in the room when
he is working.
His air conditioning unit is a small with a 3.5-kilowatt (kw) capacity
Based on the unit’s energy efficiency rating, the unit costs Ben 1.09 kw per hour to run.
Based on his electricity bills, Ben pays 27.81 cents per kilowatt hour for electricity
Ben calculates the cost of cooling and heating for the room he uses when he is working from
home as:
1.09 kw per hour × 27.81 cents per hour = 30.31 cents per kw hour
768 hours × 30.31 cents = $233 (rounded up to the nearest whole dollar).
ATO Example: Phone, data and internet
If you receive an itemised phone or internet bill, you need to work out your work-related use over a
continuous 4-week period. You can use your work-related percentage for the 4-week period to work out
your expenses for the whole income year.
For example, you can mark your work-related calls on your monthly phone bill and work out your workrelated
use based on the number of those phone calls compared to your total calls. Similar method for
internet use hours.
For Employees
Claiming flu / covid tests for employees and business alike these are tax deductible expenses
and can be claimed.
Don’t forget – Sunglasses, Hats and Sunscreen for taxpayers that work in any outdoor
occupation (including driving) they are tax deductible – please keep receipts!
Claim Everything This one each year is a bit tongue in cheek, though correctly claiming
expenses is our expertise. Your job is to think of absolutely anything that has a connection with
your income and let us measure the correct appropriateness of claim.
Audits
True to audit form the ATO stated areas of focus are the usuals:
Over-Claimed Working From Home Deductions: The ATO is specifically cross-examining
work-from-home claims against employer data. If you use the 70c fixed-rate method, you must
have a complete log of your exact hours; standard estimations or “representative blocks” will
trigger an automatic audit.
Omitted “Side Hustle” & Gig Economy Income: Digital platform sharing means the ATO
automatically cross-checks earnings from Uber, Airbnb, Airtasker, and online selling platforms.
All micro-revenues must be declared.
The “Lifestyle Gap” & Unexplained Wealth: The ATO is actively matching reported taxable
incomes against asset registries. If an individual reports a modest income but registers luxury
vehicles, boats, or prime real estate, data-matching software immediately flags the account for
an audit.
Crypto Assets: Tracking investors and businesses omitting or incorrectly calculating capital
gains or losses from cryptocurrency transactions remains a permanent data-sharing focus.
Superannuation
Superannuation has become so complex that we recommend that you never contribute until you’ve
cleared it with your advisors first.
Pay Day Superannuation, effective 1 July 2026.
The tax-deductible cap into super is $30,000 which includes super SG and salary sacrifices.
Don’t forget personal super contributions can also be claimed as a deduction but you must have
a confirmation from your superannuation fund that they have received and have processed your
notice of intent to claim form.
Age based limits for those wanting to claim personal super
contributions are applicable so discuss first with CIA tax.
The limit for non-deducted superannuation is $120,000 annually or $360,000 for 3 years.
Forget about it if over age 75 unless downsizer or employer contributions. Additionally, you must
be under the $1.9m super balance cap (except downsizer and employer) again, it’s one to
discuss with your superannuation fund advisors or discuss the caps with CIA tax.
Super caps up for 2027 rise to:
o Concessional = 32,500
o Non-concessional = 130,000 (or $390,000 for 3 years)
Contribution caps The total superannuation balance threshold, which is relevant for making
non-concessional contributions is $2.0 million during the 2025-26 financial year.
The transfer balance cap increases to $2.1 million on 1 July 2026
To claim superannuation deductions this tax year super needs to be paid WELL before
June 30 we suggest at the latest the 15th of June to likely be safe.
In many cases you should contribute when appropriate for example, an average earner saves
around 20% of tax on their contribution so even if they put the money into the safe cash option
of the fund, they have already had one great investment year!
However, if you are on the younger side or burdened with a lot of debt then speak to us about
doing the tax effective numbers to super contributions before you get too excited.
Make larger super contributions when you haven’t used all your concessional cap in
earlier years. Unused cap amounts can be carried forward for up to five years before they
expire. To be eligible to make catch-up CCs, your total super balance at the prior 30 June
must be below $500,000 contact us to know your possible shortfall.
Superannuation Co-contributions for super is something you should still DO. Up to a
50% matching rate on up to $1,000 of after-tax contributions, so a maximum amount $500
FREE from the ATO into your super!! Income thresholds must be below $62,488 to
receive any pro rata bonus.
Superannuation Pensions remember, you need to have made your annual drawdowns
by June 30 it is essential to maintain the tax-free status.
Superannuation Spouse Contribution of $3000 The amount of the offset is 18 per cent
of the spouse contribution you make (max. offset of $540) reducing your own tax. Spouse
income must be under $37,000 to get the full offset, then it gradually reduces to zero at
$40,000. Again, there are always other conditions that effect spouses’ income (reportable
amounts) so check with CIA first or your Superfund to avoid disappointment.
For Investors
Repairs and maintenance on investment properties? Consider bringing forward so you can
enjoy a tax deduction in the current financial year as with all other costs that can be paid early!
Made a capital gain?
During the past year, for example, the sale or part sale of a business (including investments the
business has made), shares or a property. If the answer is a ‘yes’ then you should be thinking
about your options for managing the CGT liability.
Start by looking for capital losses to sell down to offset the CGT liability (or losses carried forward
from prior years) to offset gains – call to discuss.
Medicare levy surcharge & Private Health Insurance Rebate
For the rates of Medicare levy surcharge that applies or the amount of rebate you are entitled to see the
rebate and surcharge levels applicable are:
Book a time.
No newsletter can ever contain or explain the full tax benefits to an individual’s circumstances so
if you have any tax concerns reach out ASAP and we’ll bring the tax deducting expertise.
CIA tax TV
Watch our weekly MONEY minutes on Ticker Tv – by following CIA tax on YOUTUBE to stay right up
to date https://youtube.com/c/CIATaxDrStevenEnticott
Carbon Landscapes
Our team bought a second Island – homes for little critters – we even made the ABC news (twice this year) here’s some background: https://www.youtube.com/watch?v=tKCX2fQxEKE
Carbon Landscapes is CIA’s very own conservation projects and we encourage everyone to support our efforts by
joining in or donating with us at: www.carbonlandscapes.com.au
