Here’s 5 ways investors can cut their tax bill (including CGT)
Own shares or crypto? Time to get your ducks in a row ahead of June 30.
EOFY is rolling around again, and if you're anything like me, you're probably not jumping for joy at the thought of tax time.
But here's the good news: this is your chance to tidy up your portfolio, save on tax, and maybe even give yourself a little financial boost.
Here are 5 smart things Aussie investors should consider before June 30:
Lock down your capital gains (and losses)
Sold any shares, ETFs, or crypto this year? Remember, you'll need to pay capital gains tax on profits.
But don't stress. If you've had any losses, you can use these to offset your gains and lower your tax bill. Just make sure you have clear records, because the ATO might come knocking.
And if you’re still thinking about selling, remember that if you hold your asset for more than 12 months, you pay 50% less CGT.
Also read: How CGT works in share trading
Top up your super
If you want to pay less tax and build your retirement savings, putting extra into your super can be a win-win.
You're allowed to contribute up to $27,500 (including your employer contributions) and claim it as a tax deduction.
These contributions are taxed at a rate of 15%, which is lower than your standard income tax rate if you make over $45,000. So to bridge the gap, you'll get a cash back as part of your tax return.
Our Money Editor Alison Banney helpfully breaks down how it works in detail here.
Just remember to let your super fund know by filling out a quick form.
Think about tax-loss harvesting
Got a few dud stocks sitting in your portfolio? Now might be the time to cut your losses.
Selling losing investments lets you offset any gains you've made elsewhere, saving you at tax time.
But watch out for the ATO’s "wash sale" rule, which is where you buy back the same investment soon after selling. If you do, you risk triggering alarms and may be fined.
Crypto counts
In case you weren’t aware, crypto isn’t anonymous to the ATO.
If you've bought, sold, swapped, or staked crypto in the last year, you'll need to include it on your tax return.
Don't panic though; most exchanges can generate handy tax reports, or you can use crypto tax software like Koinly or Crypto Tax Calculator to make things easier.
Also read: Crypto tax in Australia: What you need to know for 2025
Keep your paperwork organised (trust me)
Messy paperwork is your worst enemy at tax time. Get your dividend statements, brokerage reports, crypto trades, and super receipts sorted now, and your future self will thank you.
To make it easier, it’s a great idea to use a portfolio tracker like Sharesight. This way you can easily track buy and sell actions on multiple assets held across multiple trading platforms.
At the end of the day, EOFY doesn't have to be painful. With just a little prep, you can tidy up your portfolio, pocket some savings, and kick off the new financial year with confidence.
When in doubt (or short on time), chat with a tax professional, they're lifesavers at this time of year.
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