Smart Moves Before the End of the Tax Year

Review Your Portfolio

As the financial year comes to a close, it's the perfect time to review your investments. Look at everything you hold—shares, ETFs, crypto, property—and compare current values with what you paid. This will help you spot gains (which may be taxable) and losses (which could reduce your tax bill).

Use Tax-Loss Harvesting

If you've had some profitable investments this year, consider selling underperforming assets. This strategy, called tax-loss harvesting, lets you offset gains with losses, reducing your taxable income. Just be sure to avoid the 30-day wash-sale rule, which prevents you from claiming a loss if you repurchase the same asset too soon.

Keep Good Records

Make sure you’ve documented everything—purchase and sale dates, transaction amounts, brokerage fees, and any income or dividends received. Having complete and accurate records will make tax reporting much easier and more accurate.

Think About Timing

If you’re close to holding an investment for over 12 months, waiting might qualify you for the 50% capital gains tax discount. If your income is higher this year than it will be next year, it might make sense to realize losses now to reduce your current tax liability.

Check Your Distributions

Even if you didn’t sell anything, trust and managed fund distributions may include capital gains. Make sure you understand what’s been distributed to you, so nothing is missed in your return.

Estimate Your Tax

Now is a good time to run a rough estimate of your capital gains tax. This can help you prepare, avoid any surprise tax bills, and make smart decisions before June 30.

Talk to a Tax Professional

Tax rules can be complex, and a tax adviser can help you get it right. They can help you maximize deductions, comply with ATO regulations, and ensure your tax strategy aligns with your long-term investment goals.

Wrap-Up

Even if your investments didn’t perform the way you hoped, taking action now can help you reduce your tax, improve your financial position, and start the new financial year with more control and clarity.