EOFY Checklist: 5 Tax Moves for Australian Investors With US Stocks

Here’s the dirty secret about end-of-financial-year tax planning: most investors start thinking about it in July. By then, half the moves are gone. The window closes 30 June — not 31 July, not when your accountant gets around to it.

This year, the stakes are higher than usual for our readers. The S&P 500 has climbed from a 52-week low of around 5,943 to 7,500.58 as at mid-June. If you hold NVDA (currently ~$210.69 USD), META ($577.22 USD), MSFT ($390.74 USD), or any broad tech ETF, you are likely sitting on meaningful capital gains. AI has been good to a lot of portfolios. The ATO is about to take its share — unless you act before 30 June.

This isn’t a generic EOFY checklist. Every move below is anchored to the specific tax reality of Australians who invest in US stocks, ETFs, and bonds. Some of it will surprise you. The next five days could be the most tax-leveraged period of your investing year.

Move 1 — Tax-Loss Harvesting: Offset Your AI Winners

This is the highest-priority move for anyone holding US equities heading into 30 June 2026.

Many WSDU readers are sitting on substantial gains in tech positions — NVDA, META, broad AI-focused ETFs. What most won’t have reviewed is whether there are losing positions in the portfolio that could be crystallised before EOFY to offset those gains. Capital losses offset capital gains dollar for dollar. You don’t pay tax on the gross gain — you pay tax on the net gain.

Layer in the 50% CGT discount (available to Australian residents who’ve held an asset for more than 12 months) and the maths becomes compelling. The discount applies to the net gain after losses are deducted — so maximising the loss offset first amplifies the discount’s effect.

Worked example:

That’s a $555 saving on a single position. Scale that across a larger portfolio and you’re talking real money.

One important warning: the ATO watches wash-sale arrangements closely under Part IVA of the Tax Act. If you sell a position purely to crystallise a loss, then immediately buy back the identical asset, the ATO can deem the arrangement artificial and disallow the loss. Don’t re-enter the same position within a short window just to manufacture a paper loss. If you want to maintain exposure to the sector, rotate into a similar-but-not-identical ETF or stock rather than buying back the exact holding.

Important timing note: For CGT purposes in Australia, the capital gain or loss generally arises on the trade/contract date when you enter into the binding contract to sell through your broker. However, to allow for processing times and US settlement cycles (typically T+1), it is prudent to execute any sales several business days before 30 June. Any unused net capital losses after offsetting gains can be carried forward indefinitely to offset future capital gains.

The clock is ticking. Don’t leave sales or super contributions to the 29th — allow buffer for settlement and clearing.

Move 2 — The Hidden Currency Gain (Most Investors Miss This)

This is the move that virtually every generic EOFY article ignores — and it’s uniquely relevant to anyone investing in US stocks.

Australian tax law requires you to calculate your capital gain or loss in Australian dollars. Not USD. Your AUD cost base is the AUD equivalent of what you paid at the time of purchase. Your AUD proceeds are the AUD equivalent of what you received at the time of sale. The ATO requires you to use the exchange rate at each transaction date — specifically the RBA’s daily published rates.

Here’s why this matters right now. AUD/USD sits at 0.7012 as at mid-June 2026. If you purchased US stocks when the Australian dollar was weaker — say AUD/USD was around 0.65 — the currency shift alone may have embedded a gain (or a loss) in your position that has nothing to do with the stock’s performance in USD terms.

Worked example:

You buy MSFT at $300 USD when AUD/USD = 0.65.
Your AUD cost base: $300 ÷ 0.65 = $461.54 AUD per share

The stock goes nowhere. You sell at $300 USD when AUD/USD = 0.70.
Your AUD proceeds: $300 ÷ 0.70 = $428.57 AUD per share

Result: a capital loss of ~$32.97 AUD per share — despite the USD price being completely flat.

Now run it in reverse. If you bought during a period of AUD weakness (lower AUD/USD number) and the AUD has since strengthened, you could have a hidden currency gain embedded in a position that looks breakeven in USD terms. The AUD was significantly lower than 0.70 during parts of the past few years — if your purchase dates fall in those windows, the currency has worked against your AUD cost base.

The action item: before you sell any US position, calculate your gain or loss in AUD, not USD. You may be sitting on a taxable event you didn’t realise you had — or conversely, you may have a loss you didn’t know existed. Run the numbers now, while there’s still time to act.

Keep all purchase confirmations with date, USD price, and AUD exchange rate. If you’re missing records, the RBA’s published exchange rate history is accessible at rba.gov.au.

Move 3 — Check Your W-8BEN Before Dividends Hit

WSDU covered the full mechanics of US dividend withholding in “Why Your US Dividends Are Being Taxed Twice” — if you haven’t read it, go there first. The quick version for EOFY purposes:

Without a W-8BEN on file with your broker, the US withholds 30% of every dividend payment. With a W-8BEN (which certifies you’re an Australian resident eligible for the Australia–US tax treaty rate), that drops to 15%. On a $10,000 USD dividend portfolio, that’s $1,500 USD saved per year — roughly A$2,138 at the current 0.7012 exchange rate.

The part people miss: W-8BENs expire every three years. Having lodged one in 2023 doesn’t mean you’re still covered. If yours has lapsed, you may currently be paying the full 30% withholding on dividends you’re receiving right now.

Check your broker’s records before 30 June. If you’re not sure whether your W-8BEN is current, call them. This is a five-minute fix with a material dollar impact.

Move 4 — FITO: Don’t Leave the Foreign Tax Offset on the Table

Again, our inaugural Tax Corner article has the full treatment. For EOFY purposes, here’s what matters:

The US tax withheld on your dividends can be claimed as a Foreign Income Tax Offset (FITO) against your Australian tax liability on that same income. It’s not a refund — it’s a credit. Specifically, the FITO is capped at the lesser of the foreign tax actually paid or the Australian tax payable on that income. A common mistake is expecting a dollar-for-dollar refund on all US withholding. If your Australian tax liability on that income is lower than what was withheld, the excess doesn’t come back to you.

That said, it’s still worth claiming. If you’re receiving $5,000 USD in US dividends (~A$7,128 at 0.7012) and paying 15% withholding, that’s approximately A$1,069 in withheld tax sitting there as a potential offset against your Australian liability on that income.

To claim the FITO, you need a dividend statement showing the foreign tax paid. Most brokers generate these — but if yours hasn’t sent one for FY2025–26, request it now. You’ll need it for your tax return.

Move 5 — Review Your Cost Base Records Now (Not in July)

This is the housekeeping move with the most catastrophic downside if ignored.

CGT in Australia is calculated on AUD cost bases at the date of each purchase. If you’ve been investing in US stocks for several years, you potentially have dozens of purchase lots with different USD prices, different purchase dates, and different AUD/USD exchange rates. Each one needs to be calculated separately.

The ATO’s accepted method is to use the RBA’s daily published exchange rates — available at ato.gov.au. If records are missing entirely, the default treatment is a cost base of zero — meaning your entire sale proceeds become a taxable capital gain. The tax consequence of poor record-keeping is not theoretical. It’s enormous.

Specific things to confirm right now:

• Purchase records: Do you have trade confirmations for every US position you might sell this FY or next?
• Purchase dates: The >12 months holding period for the 50% CGT discount is calculated from purchase date. If records are incomplete, you lose the ability to prove eligibility for the discount.
• AUD cost bases: Do you know the AUD equivalent of each purchase, using the correct exchange rate on the correct date?

If you use a broker platform that auto-calculates cost bases — Stake, CMC Markets, Interactive Brokers — don’t assume the numbers are correct. Some platforms use approximations or average exchange rates rather than exact transaction-date rates. Cross-check at least a sample of your positions against the RBA historical rates before EOFY.

For ongoing accuracy, keep a simple spreadsheet logging every purchase: trade date, USD price, RBA AUD/USD rate on that day, and the resulting AUD cost base per share. Tools like Sharesight or Excel + RBA historical data downloads can automate much of this for Australian investors.

July is not the time to discover a problem with your records. June is.

Don’t Forget the Basics

For completeness: the concessional super contributions cap for FY2025–26 is $30,000. If you haven’t maxed it, you have until 30 June — and carry-forward of unused concessional caps (available if your total super balance was under $500,000 at the end of the previous financial year) may allow you to contribute more. Prepaying deductible investment expenses before 30 June can also bring forward deductions.

Your accountant will flag them — but they’re worth a quick check.

The Clock

Five days. That’s what’s left of FY2025–26.

Tax-loss harvesting and super contributions have hard 30 June deadlines — not “before you lodge your return” deadlines. Sells need to settle. Contributions need to clear. Don’t leave it to the 29th.

For anything involving your personal tax position — particularly the CGT calculations and FITO claims covered above — use a registered tax agent, not a financial planner. Financial planners are not licensed to provide tax advice. Find a registered tax agent at ato.gov.au.

Quick EOFY US Stocks Action Checklist (Complete Before 30 June)

• Review any losing US positions and consider tax-loss harvesting (rotate into a similar-but-not-identical ETF or stock if you want to maintain sector exposure)
• Calculate gains/losses in AUD using RBA rates for any US positions you may sell
• Confirm your W-8BEN is current in your broker account (check expiry date)
• Request dividend statements showing foreign tax paid (needed for FITO claims)
• Verify trade confirmations and AUD cost bases for all US holdings you might sell this year or next
• Max concessional super contributions ($30,000 cap for FY2025–26) if you haven’t already — carry-forward unused caps may be available
• Execute any sales with enough buffer for broker processing and settlement

Wall St. Down Under | Australia

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Disclaimer: Wall St. Down Under is an independent financial newsletter for informational and educational purposes only. Nothing published here constitutes financial advice, a recommendation to buy or sell any security, or a solicitation of any investment decision. Always do your own research and consult a licensed financial adviser before making investment decisions. Australian investors should consider their own financial situation, objectives, and risk tolerance. Past performance is not indicative of future results.