10 Smart Tax and Savings Moves to Make Early in the Financial Year

Written by Jenni Anderson, Anna Colley & Shara Cox

The start of a new year is the ideal time to get proactive with your finances. Rather than leaving tax planning until April or May, early action allows you to make better decisions, spread costs, improve cash flow and maximise savings over the entire financial year.

 While tax outcomes are finalised at year-end, the best results usually come from habits and decisions made much earlier. Here are ten smart tax and savings strategies worth reviewing now, while there’s time to plan properly.

1. Set Up a System for Home Office Expenses

If you work from home, putting a record-keeping system in place early makes claiming deductions far easier later.

The ATO allows claims under:

  • Fixed Rate Method (using the ATO-approved hourly rate), or

  • Actual Cost Method, which requires detailed receipts and calculations.

Tracking hours worked and expenses throughout the year ensures you can choose the most beneficial method at tax time, without scrambling for records.

2. Review How Your Investments Are Owned

January is a good time to step back and review whether your investment structures still suit your circumstances.

Ownership structures — such as individual, joint, company or trust — can significantly affect tax outcomes over time. While changes may trigger capital gains tax or stamp duty, identifying potential improvements early allows for careful planning.

Family trusts can offer flexibility in income distribution, but with increased ATO scrutiny, professional advice is essential.

3. Organise Property Depreciation Early

If you own an investment property, arranging a Property Depreciation Report early in the year ensures you don’t miss out on deductions.

Prepared by a qualified quantity surveyor, these reports can unlock depreciation on eligible assets and capital works. In many cases, the cost of the report is recovered quickly, particularly in the early years of ownership.

4. Track Work-Related Vehicle Use from Day One

If you use your vehicle for work or business purposes, January is the perfect time to start tracking usage correctly.

Common methods include:

  • Logbook Method – requires a valid 12-week logbook and expense records

  • Cents per Kilometre Method – based on a reasonable estimate up to the ATO limit

A properly maintained logbook can generally be used for up to five years, making early compliance especially valuable.

5. Plan for Prepaid Expenses

Prepaying eligible investment expenses can help manage taxable income, but the key is planning — not rushing.

Eligible expenses may include:

  • Interest on investment loans (up to 12 months)

  • Investment-related subscriptions and memberships

  • Certain rental property expenses

Mapping these expenses early helps align deductions with cash flow and avoids last-minute decisions.

6. Keep on Top of Work-Related Expenses

Small expenses add up over a year. Keeping digital or physical records now makes a big difference later.

Common deductible expenses include:

  • Work-related training and professional development

  • Tools, software and learning materials

  • Uniforms and protective clothing

Expenses must be directly related to earning your income and not reimbursed by your employer.

7. Review Insurance and Protection Strategies

Income Protection Insurance premiums are generally tax deductible when held personally.

Beyond the potential deduction, this cover provides peace of mind by protecting your income if illness or injury prevents you from working. Reviewing policies early allows time to adjust cover or structure premiums effectively.

8. Plan Super Contributions Across the Year

Superannuation is one of the most effective long-term tax and savings tools available.

Rather than making a last-minute contribution in June, consider:

  • Setting up salary sacrifice arrangements

  • Planning personal deductible contributions

  • Reviewing eligibility to use unused concessional caps from prior years

Spreading contributions across the year can ease cash flow while reducing taxable income.

9. Be Strategic with Capital Gains and Losses

If you anticipate selling investments this year, early planning helps manage capital gains tax more effectively.

Realising capital losses from underperforming assets may help offset future gains, and unused losses can be carried forward indefinitely. Timing and strategy matter — and are far easier to manage when considered well in advance.

10. Think Ahead About Income and Asset Timing

For investors and business owners, the timing of income and asset sales can influence tax outcomes.

Where appropriate, deferring income or planning asset disposals thoughtfully can help smooth taxable income. Remember, for capital assets, it’s generally the contract date, not settlement date, that determines the tax year.

Next Steps

Strong tax outcomes are rarely achieved through last-minute action. Starting early gives you more flexibility, better control and less stress as 30 June approaches.

If you’d like help reviewing which strategies suit your situation, speak with your Salt Accountant to ensure your plan supports both your financial goals and ongoing compliance.

Jenni Anderson