EOFY Alpha: The Complete Australian Investor Tax Playbook
Most EOFY content tells you what the rules are. We tell you which rules to care about most — and in what order. The complete execution manual for Australian investors before and after 30 June.
The Only Return That Matters Is the After-Tax Return
Every percentage point of return you calculate on your portfolio is provisional. The real number — the one that compounds, the one that funds your retirement, the one that actually belongs to you — is the figure that remains after the ATO has taken its share.
Most EOFY content focuses on tax theory. What the rules say. What the thresholds are. What you’re technically allowed to do. That’s the foundation — but it’s not the decision.
This article is the execution manual. It tells you which rules produce the biggest dollar difference for a typical Australian investor, in what order to address them, and how to act on each one before the window closes at midnight on 30 June 2026.
If you read this week’s Tax Corner — “EOFY Checklist: 5 Tax Moves for Australian Investors With US Stocks” — this article goes substantially deeper. The EOFY Checklist introduced the moves. This is the complete decision framework: more structure, worked examples, edge cases, and the forward-looking setup for FY2026-27. Where the two overlap, this article takes the analysis further.
FY2025-26 ends at midnight on 30 June 2026. Many of the actions below are still available to you. Time is the only constraint that matters right now.
The EOFY Impact Matrix
Before diving into each priority area, here is the framework for allocating your time. Not every action is worth the same attention.
| Action | Potential Tax Impact | Time Required | Priority |
|---|---|---|---|
| Capital gains timing & loss harvesting | HIGH | Hours | 1 — Do first |
| Superannuation contributions | HIGH | Minutes (if set up) | 2 — High leverage |
| Foreign tax credit (FITO) optimisation | HIGH | Hours | 3 — US stock holders only |
| Cost base accuracy review | HIGH to VERY HIGH | Hours (once) | 4 — Compounding benefit |
| Deductible expense prepayment | LOW–MEDIUM | Minutes | 5 — Easy wins |
| Record keeping / admin | MEDIUM (avoids future errors) | Ongoing | Foundation |
The matrix logic: start with the highest-impact actions that remain time-sensitive. Cost base accuracy has the highest potential impact of anything on this list — but it’s not urgent today, it’s permanent. The time-critical window is capital gains timing and super contributions.
Priority 1 — Capital Gains Timing and Tax-Loss Harvesting
Why it’s first: This is the highest-dollar decision for most investors with unrealised gains or losses in their portfolio. The difference between acting before 30 June and waiting until 1 July can be a full financial year of tax timing — meaning twelve months of deferred liability.
When to Realise Gains vs Defer to the Next Financial Year
The core principle: taxable capital gains are assessed in the financial year the contract date falls, not the settlement date. If you sell shares on 30 June, the gain is assessable in FY2025-26 even if the funds haven’t settled.
Realise gains now if:
- You have capital losses available to offset (see below)
- Your income in FY2025-26 is lower than expected (lower marginal rate applies)
- You’ve held the asset less than 12 months and intend to sell within the next few months anyway (deferring to FY2026-27 won’t change the rate but might allow you to hit the 12-month CGT discount mark)
Defer gains to FY2026-27 if:
- You have no offsetting losses
- Your taxable income is unusually high this year due to a one-off event (bonus, redundancy payment, property settlement)
- You’re close to a tax threshold — pushing income across a threshold costs you more than the gain is worth
Tax-Loss Harvesting: How It Actually Works
Tax-loss harvesting means deliberately selling positions that are in a capital loss to create a tax deduction — not because you want to exit the position permanently, but because the loss has value as a tax asset.
Worked example (AUD):
You hold two US positions:
- Position A (Visa, held 14 months): Cost base AUD $15,000. Current value: AUD $19,500. Unrealised gain: AUD $4,500. After 50% CGT discount (held >12 months): taxable gain = AUD $2,250.
- Position B (a tech name): Cost base AUD $8,000. Current value: AUD $5,500. Unrealised loss: AUD $2,500.
Without harvesting Position B:
- Taxable gain on Position A: AUD $2,250
- Tax at 37% marginal rate: AUD $832.50
With harvesting Position B (sell before 30 June):
- Capital gain from Position A: AUD $4,500 (pre-discount)
- Capital loss from Position B: AUD $2,500
- Net capital gain: AUD $2,000 (then apply 50% CGT discount) = AUD $1,000 taxable
- Tax at 37%: AUD $370
Tax saving from harvesting: AUD $462.50 — by taking an action that takes 10 minutes.
The CGT Discount and Loss Harvesting Interaction
This is the most commonly misunderstood interaction in Australian CGT. The sequence matters:
Correct ATO method:
- Aggregate all capital gains (discounted eligible gains are halved after offsetting)
- Apply capital losses to gross capital gains first (before applying the 50% discount)
- Apply the 50% CGT discount to the net remaining discountable gain
This means a $2,500 capital loss offsets $2,500 of gross capital gain — effectively saving you 37% × 50% × $2,500 = $462.50 at a 37% marginal rate. The interaction of discount and losses is why calculating “what’s my actual tax saving” requires running the full sequence, not a simple multiplication.
Wash-Sale Equivalent Risk Under Australian Law
Australia has no specific wash-sale rule equivalent to the US rule. However, the ATO can apply Part IVA — the general anti-avoidance provision — to arrangements that are entered into for the dominant purpose of obtaining a tax benefit.
In practice: selling a position to crystallise a loss, then immediately repurchasing the same position, carries Part IVA risk if the ATO determines the transaction lacked genuine commercial substance and was purely tax-motivated.
Practical guidance:
- A brief genuine separation period and/or repurchasing a similar but not identical exposure (e.g., sector ETF vs individual stock) substantially reduces Part IVA risk
- If you genuinely want to exit the position, the risk is nil — you’re just selling
- The ATO has published guidance on wash sales; if your situation is at the margins, get specific tax advice
Decision Flowchart: Should I Sell This Position Before 30 June?
Is this position in a capital GAIN?
├── YES → Do I have capital losses to offset it?
│ ├── YES → Consider realising now (especially if income lower this year)
│ └── NO → Is my income lower this year than next?
│ ├── YES → Consider realising now
│ └── NO → Consider deferring to FY2026-27
└── NO (capital loss) → Do I want to exit this position anyway?
├── YES → Sell before 30 June — crystallise the loss in FY25-26
└── NO → Do I have capital gains to offset?
├── YES → Consider harvesting (see wash-sale risk above)
└── NO → Loss carry-forward is automatic — no urgency to sell
Priority 2 — Superannuation Contributions
Why it’s second: Superannuation contributions combine a guaranteed tax saving (the difference between your marginal rate and the 15% contributions tax rate) with a deadline that cannot be extended. Contributions must be received by your super fund by 30 June 2026. Not lodged. Not transferred. Received.
In late June, allow 2–3 business days minimum for processing. For some funds, the cut-off is even earlier.
