Overlooked Tax Changes Businesses, Investors and Individuals Should be Aware of as EOFY Approaches

A leading finance expert warns of several tax changes which have gone under the radar - which could significantly impact business, investor and personal returns as the end of the financial year approaches.

“It’s important to stay on top of recent updates from the Australian Taxation Office (ATO) because it could significantly impact what you can claim and your tax strategy, potentially leaving you with more money in your pocket,” Mr Croy said.

“If you’re a property investor, you’ll want to pay close attention to a little-known update from the Australian Taxation Office (ATO) which clarifies that the cost of repairing, constructing, or renovating a property, including interest on construction loans, does not fall under the definition of simply ‘holding vacant land’,” Mr Croy said.

“This means if you’ve taken out a construction loan for a rental property — even if it’s not yet generating rental income — you may now be eligible to claim interest expenses as a tax deduction right away.”

Previously, this interest was typically added to the Cost Base for Capital Gains Tax (CGT), meaning investors had to wait until the property was sold to see any benefit. 

“Under the new ruling, interest and borrowing costs may be claimed as immediate tax deductions, rather than being deferred until a future sale,” Mr Croy said.

“This is a real game-changer and will help boost the lack of housing stock in the market. This has the potential to improve cash flow during the construction phase by reducing your taxable income sooner.

“Better still, this has now been backdated, meaning if you've undertaken construction work on your investment property in the past three years, you can claim on the interest accrued during the construction period.”

Australians with a total superannuation balance of under $500,000 may have an opportunity to boost their retirement savings by making the most of unused concessional contributions from previous financial years. 

“Thanks to the carry-forward rule, if you haven’t used your full concessional contributions cap in the past, you may be able to carry forward those unused amounts for up to five years. This means you could contribute more than the standard annual cap in a future year - and potentially reduce your tax bill in the process. 

 

Mr Croy said the measure applies to unused concessional cap amounts dating back to 2018-19, even if you weren’t a member of a super fund at the time.

“This is really aimed at helping lower to middle income earners the most, because even adding $1,000 will not only have the benefit of the added tax deduction but will boost your retirement savings through that compounding interest effect.”

Mr Croy said businesses had just weeks left to claim the increased instant asset write-off threshold which allowed businesses to claim an immediate tax deduction for eligible assets valued under $20,000. 

However, from 1 July 2025, the instant asset write-off threshold will significantly reduce to $1,000. 

“Businesses shouldn’t see this as free money and should not buy equipment they don’t need. It doesn’t really make sense to be spending money just to get a tax write-off, because you are getting a percentage of that tax saving, not dollar for dollar.”

Mr Croy also cautioned people not to be too eager to lodge their tax return in case an employer hasn’t reported earnings on your last wage.

“Although the end of the financial year is June 30, businesses don’t have to report your full earnings until 14 days later on July 14. So if you lodge immediately on July 1, there’s a chance you will either miss out on claiming everything you could.

Mr Croy said individuals should also be aware they can claim:


Deductions on your income protection insurance, as long as the fees are paid out of pocket and not your superannuation fund.


Donations to charity are tax deductible, provided you have a gift receipt and did not receive anything in return.


For those who use their personal car for work, motor vehicle claims with the logbook method can be far more beneficial than the cent per km claim of 5000 kms.

EOFY Preparation Tips


Individuals: Check your income looks accurate and don’t be in a rush to submit. Review deductions for work-from-home expenses under the fixed rate method (now 67 cents/hour) and keep logs to substantiate claims.


Investors: Ensure full documentation for capital gains and losses, especially across multiple asset classes.


Businesses: Conduct a pre-June financial health check to capture all eligible deductions, depreciation, and tax offsets.


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As financial strategists, they help create a well-designed pathway for people to tick off financial goals to give them choice in their future, whether that’s saving for children’s schooling and university, building a significant property portfolio, creating and protecting their legacy, or retiring early.