Annual Tax Planner for Australia

Australian tax planning operates on a July-to-June financial year, which creates a natural planning rhythm. The end of financial year in June is when many people make last-minute super contributions or prepay deductible expenses. Having a year-round record of income and deductions means June 30 is less of a scramble and more of a final check against an already-organised picture.

Salary sacrifice into super is one of the most effective tax planning tools available to Australian employees. Contributions made through salary sacrifice are taxed at 15% inside super, compared to marginal rates that can reach 45% plus the Medicare levy. The catch is the $30,000 concessional cap - employer contributions count toward this limit, so tracking both employer and voluntary contributions against the cap throughout the year prevents costly mistakes.

Franking credits are a uniquely Australian feature of the tax system. When Australian companies pay corporate tax on their profits, the tax credit flows through to shareholders. For someone in a lower tax bracket, these credits can exceed their personal tax liability, resulting in a refund of the excess. Tracking dividend income alongside the attached franking credits gives a more accurate picture of after-tax investment returns.

The 50% capital gains tax discount for assets held longer than 12 months creates a strong incentive for long-term holding. Selling shares or property just before the 12-month mark versus just after can mean a significant difference in the tax bill. Recording purchase dates alongside cost base information throughout the year makes these calculations straightforward when it is time to lodge the return.