EOFY Survival Guide: Maximise Deductions, Minimise Tax

APRIL 2026

With the end of the financial year almost on the horizon, it is worth taking some time to consider how you can maximise your deductions, therefore minimising tax. 

Work-related expenses

The ATO highlights there are many work related expenses to watch out for. Expenses for cars, transport and travel incurred while you’re working, deductions for tools, computer, the Internet, stationery, books and other items used for work, clothes and items you wear for work, deductions for self-education, conferences and training should all be considered. Deductions are highly unlikely for medical assessments, vaccinations, COVID tests, gym fees, cosmetics and grooming.

Insurance premiums

Insurance premiums may be deductible. As a general guideline, the ATO does allow a deduction for certain insurance premiums if you can show that the insurance cover relates to earning assessable income.

In other words, life insurance, trauma insurance or critical care insurance are generally out. However, income protection insurance is one example of the kind of cover that may provide an allowable tax deduction for premiums, even though having the insurance policy does not of itself “earn” income for the taxpayer.

In some cases, deductible insurance premiums may apply to income protection insurance if it’s taken out as a separate policy from your superannuation, car insurance if you are using your car for work, home insurance if you run your business out of your home and tax audit insurance.

In general, you can claim a tax deduction for the part of the premium that covers loss of income, like your salary or wages. The amount you can claim as a deduction generally depends on the premium cost and your marginal tax rate. Don’t forget, if your policy includes extras like critical illness, trauma, or lump sum injury benefits, those parts of the premiums aren't tax-deductible. Also, remember that any payments you receive from an income protection policy, whether it's regular income replacement or a lump sum, need to be declared as taxable income.

Negative gearing

In general, you may receive a deduction for negative gearing. Investors negatively gear as they can usually claim a tax deduction for the investment loss. The aim is for the capital growth to offset the loss in earlier years.

Not every investment delivers a profit, but a capital loss tax deduction can help reduce your capital gains tax (CGT) liability. In Australia, capital losses can only offset capital gains and cannot be deducted from other income such as salary, wages, or rental income.

Instant Asset Write-Off

On the business front, the big change this year will be for the $20,000 Instant Asset Write Off which allows eligible businesses to immediately deduct the cost of qualifying assets. This will expire on 30 June 2026.

From 1 July, the threshold will revert to just $1,000. That means future purchases will need to be depreciated over time, impacting cash flow and tax strategy. As a result, assets will need to be depreciated over several years under the general small business pool.

On the plus side, there’s the R&D tax incentive where some businesses can get a 43.5% refundable tax offset for eligible R&D entities with turnover under $20 million and larger businesses get a 38.5% non-refundable offset. This will include innovations like software development and system integration, product and process innovation, experimental prototyping and testing and data science and machine learning model development. All critical considerations.

Seek advice

These are just some of the considerations for end of financial year planning. Of course, the most important thing you can do in preparing your EOFY is to seek advice from a specialist. Our team is highly experienced in tax. If you need clarification on your deductions or support in preparing and maximising your return, please contact us. 

Advice Disclaimer: This article is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making an investment decision in relation to a financial product (including a decision about whether to acquire or continue to hold).