Sep112025
NewsEnd of Financial Year

End of Financial Year or June 30 (as it’s commonly referred to) looms, and pressure starts to build. For many Australians, it’s a time of frantic document gathering. There’s also a sense of dread about the tax bill to come. But what if you could change that narrative? What if End of Financial Year became a moment of empowerment, a chance to take control of your financial future? With a bit of forward thinking and the proper guidance, it absolutely can be. This isn’t just about compliance; it’s about making your money work smarter for you.

A Financial Adviser’s Guide to Smart End of Financial Year Planning

This article will unpack why End of Financial Year planning is important for your finances. It will explore how a good financial advisor can be your best asset in this process. Finally, it will detail how the landscape of financial advice has been reshaped for the better by the Future of Financial Advice (FOFA) reforms.

Key Considerations for the End of Financial Year

Think of the end of the financial year not as a finish line, but as a strategic checkpoint. It’s your annual opportunity to make impactful decisions that can legally reduce your tax liability. This can accelerate your journey towards your long-term financial goals. Many of the most effective strategies are only available before the clock strikes midnight on June 30.

One of the most common and effective strategies is timing your expenses before the End of Financial Year. By bringing forward tax-deductible costs into the current financial year, you can reduce your taxable income. This could be anything from prepaying the interest on an investment loan for the next 12 months to renewing work-related subscriptions. You could even purchase that new piece of equipment for your business. The Australian Taxation Office (ATO) allows a wide array of deductions, provided everything is completed before the End of Financial Year. Yet surprisingly, many people leave money on the table. In the 2023-24 financial year, about 9 million Australians claimed a staggering $28 billion in work-related expenses [1]. That’s a lot of potential savings.

Your superannuation is another powerhouse in your tax-planning arsenal. Making concessional (before-tax) contributions is a direct way to lower your taxable income. For the 2025-26 financial year, you can contribute up to $30,000. It’s a ‘use it or lose it’ cap each year, so planning is essential. Additionally, if you make non-concessional (after-tax) contributions, you might even be eligible for a government co-contribution. This is essentially free money for your retirement.

Capital gains tax (CGT) is another area where End of Financial Year timing is critical. If you’ve sold assets and made a capital gain, consider selling other assets that are currently sitting at a loss. This strategy, known as tax-loss harvesting, allows you to offset your gains and reduce your CGT bill. Remember, if you hold an asset for more than 12 months, you’re entitled to a 50% discount on the capital gain when you sell. A few days can make a significant difference to your tax outcome.

It is critically important that you allow enough time before the End of Financial Year for any superannuation contributions to be receipted into your fund. The ATO will only allow deductions if there is a paper trail completed prior to June 30.

Key Facts About End of Financial Year Planning

Tax Minimisation Strategies

  • Bring forward deductions – Prepay investment loan interest up to 12 months, work subscriptions, and business equipment before June 30 
  • Superannuation contributions – Concessional contribution cap of $27,500 for 2024-25 financial year reduces taxable income 
  • Capital gains management – Use tax-loss harvesting to offset gains; hold assets >12 months for 50% CGT discount
  • Work-related expenses – 9 million Australians claimed $28 billion in work-related deductions in 2023-24

The Human Element: Why a Good Advisor Matters

Let’s be frank: the Australian tax system is a labyrinth. The rules are complex and ever-changing. It’s all too easy to get lost, miss opportunities, or make an expensive mistake. This is where a qualified financial advisor proves their worth. A good advisor does more than just help you with your End of Financial Year tax return; they partner with you to build a holistic financial plan that reflects your life and aspirations.

There’s a growing appreciation for the value of professional advice. A 2025 Green Paper from the Financial Services Council (FSC) revealed that 75% of clients who receive advice are satisfied with the service, a notable rise from 64% in 2016 [2]. The same report highlighted that financial advice practices save, on average, $70,500 a year by leveraging the support of their licensee, and advisors themselves reclaim about seven hours a week that would otherwise be spent on administrative and compliance tasks [2]. This frees them up to do what truly matters: focusing on their clients.

Of course, advice comes at a cost, which can be a hurdle for some. However, the value it delivers often far exceeds the fee. A UNSW study found that while the average deduction for tax advice was a modest $378, the savings for those with more complex financial situations can be substantial [3]. A financial advisor can uncover deductions you didn’t know existed, help you structure your investments for optimal tax efficiency, and ensure you’re making the most of every opportunity the system allows. Remember that the End of Financial Year is a busy time for advisers, so be sure to get your planning done by early June at the latest.

Professional Advice Value

  • Client satisfaction increased from 64% (2016) to 75% (2024) for advised clients 
  • Cost savings – Licensed practices save average $70,500 annually through licensee support 
  • Time efficiency – Advisers gain 7 extra hours weekly through administrative support 
  • Average tax advice cost – $378 (mean), $165 (median) deduction claimed

A New Era of Trust: The FOFA Reforms

The financial advice industry in Australia has been through a period of profound transformation, driven by the Future of Financial Advice (FOFA) reforms. Kicked off in 2012, FOFA was a response to a clear need to rebuild trust and confidence in the financial services sector. The goal was simple but ambitious: to make high-quality financial advice more accessible, affordable, and, most importantly, trustworthy.

The FOFA reforms brought in some landmark changes:

  • A Ban on Conflicted Remuneration: This was a watershed moment. It put an end to commissions and other payments from product providers that could potentially sway an advisor’s recommendation. It ensures the advice you get is based on your needs, not on what pays the advisor the most.
  • A Statutory Best Interests Duty: This is the heart of the FOFA reforms. It legally obligates financial advisors to act in your best interests and to put your interests ahead of their own. It has lifted the professional bar for the entire industry.
  • An Opt-In for Ongoing Fees: Advisors can no longer charge ongoing fees indefinitely. They now need your explicit consent every two years to continue the arrangement. This has brought much-needed transparency and accountability.
  • Annual Fee Disclosure Statements: You now receive a clear statement every year detailing the fees you’ve paid and the services you’ve received in return.

The impact of FOFA has been undeniable. While the increased regulation did lead to a contraction in the number of advisors, it has also forged a more professional, client-centric industry. The FSC Green Paper points to a new trend: since 2020, over 450 micro-licensees (firms with fewer than 10 advisors) have emerged, suggesting a move towards smaller, more specialised practices [2].

Even a decade on, the principles of FOFA are more relevant than ever. They are the bedrock of consumer protection, transparency, and trust in financial advice. By holding advisors to a higher standard, the reforms have created a safer and more equitable environment for all Australians seeking financial guidance.

Key Takeaways

  • End of Financial Year planning is strategic, not just compliance – offers significant tax minimization opportunities 
  • Professional advice delivers measurable value through cost savings and expertise 
  • FOFA reforms successfully transformed the financial advice industry toward client-centric practices 
  • Consumer protection remains paramount with ongoing relevance of FOFA principles
  • Industry evolution continues with trend toward smaller, specialised advice practices

Your Financial Future is in Your Hands

End of Financial Year planning is your annual opportunity to be the architect of your financial well-being. It’s about more than just numbers on a page; it’s about making conscious decisions that will shape your future. By being proactive and seeking expert guidance, you can turn tax time from a period of stress into a moment of strategic advantage.

The financial advice profession has changed for the better, and the FOFA reforms have been a key driver of that positive change. The focus on your best interests is now enshrined in law. As you prepare for the end of the financial year, remember that you don’t have to navigate the maze alone. A trusted financial advisor can be the most valuable asset you have, helping you not only save on tax but also build a more secure and prosperous future.

Call the Professionals

If you are looking for financial planners to help with your End of Financial Year plans, call the professionals at Approved Financial Planners. Our expertise keeps you organised and on time every year.

To learn more about how our financial planners can organise your financial year, call (08) 6462 0888.

References

[1] Australian Taxation Office. (2025, June 27). Taxation statistics 2022–23. https://www.ato.gov.au/about-ato/research-and-statistics/in-detail/taxation-statistics/taxation-statistics-2022-23

[2] Financial Services Council. (2025, July 24). The Value and Future of Advice Licensing. https://www.fsc.org.au/resources/2835-green-paper-on-the-value-and-future-of-advice-licensing/file

[3] UNSW Sydney. (2022, June 14). Does paying for tax advice save money? Only if you’re wealthy. https://www.unsw.edu.au/newsroom/news/2022/06/does-paying-for-tax-advice-save-money–only-if-youre-wealthy

Category: News