It’s The End of Financial Year! Here Are 5 Things ASX Investors Need To Do

It is the EOFY (End of Financial Year) coming at the end of this month. Whatever dates your company uses as a fiscal year, July 1 to June 30 is the Australian financial year and this is the time Australian investors should do more homework than at any other time of year. Those who prepare early tend to enter the new financial year with cleaner portfolios, better tax outcomes, and a clearer sense of direction.

What’s more, this EOFY carries even more weight than usual. The new capital gains tax rules begin on 1 July, and they will reshape how investors think about holding periods, trading frequency, and long‑term compounding. Against that backdrop, June becomes the one month where investors can still influence their FY26 tax position while positioning themselves for FY27 under a different regime. Here are 5 things investors need to do.

5 Steps Investors Need To Take This End Of Financial Year

1. Lock In A Tax Position Before 30 June

The first task in June is to understand where you stand. That means reviewing unrealised gains and losses, checking holding periods, and deciding which positions you want to carry into the new financial year.

Investors should start by going through their portfolios line by line. Identify the positions sitting on large gains, the ones sitting on losses, and the ones you intend to exit regardless of tax. This exercise is not about reacting to short‑term price moves; it is about understanding the tax consequences of decisions you may already be planning to make.

One of the most widely used EOFY strategies is tax‑loss harvesting. If you have realised gains this year, crystallising losses can offset them. The ATO requires genuine disposal of the asset, and wash‑sale behaviour (i.e. selling then buying back quickly just to crystallise a loss) is monitored closely, so investors need to be deliberate. If you want to maintain exposure, you can rotate into a similar but not identical asset. For example, selling a lithium developer at a loss and rotating into a lithium producer maintains sector exposure without breaching wash‑sale rules.

Holding periods matter as well. If you are close to the 12‑month mark on a profitable position, the timing of a sale can materially change your tax outcome. Investors often discover in June that a position they intended to sell is only weeks away from qualifying for the CGT discount. In those cases, waiting may be the more rational choice.

June is also the month to bring forward deductible expenses. Investment subscriptions, research tools, accounting fees, and interest on investment loans (where prepayment is allowed) can reduce taxable income for FY26. These are small levers individually, but they add up.

Finally, ensure all dividend statements are accounted for. Franking credits reduce your tax bill, and missing credits is one of the most common EOFY errors. Dividend reinvestment plans need to be recorded correctly, including the cost base of the reinvested shares.

2. Prepare for the New CGT Rules Starting 1 July

The new CGT regime is the most significant tax change for investors in years. June is the last chance to position your portfolio under the old rules. Note: These haven’t been legislated yet but are all but certain to be in due course given the government’s majority in both houses – sorry!

The key changes are well known by now. The 50% CGT discount remains, but high‑income investors may face reduced discounts on certain asset classes. Assets acquired after 1 July may fall under different discounting rules, and the government has signalled tighter treatment of short‑term trading gains. The cost‑base date becomes more important than it has been in decades.

Investors should review the assets they intend to hold long‑term. If you plan to own a stock for years, acquiring or topping up before 30 June may lock in a more favourable CGT treatment. This is particularly relevant for high‑conviction positions where the holding period is measured in years rather than months.

Trading strategies also need to be reassessed. Frequent trading may become less tax‑efficient under the new rules. June is the time to decide which positions are trading positions and which are long‑term compounding positions. The distinction matters more under the new regime.

Trust and SMSF structures should be reviewed as well. The new CGT rules interact differently with discretionary trusts, family trusts, SMSFs, and corporate investment vehicles. Distribution strategies, beneficiary allocations, and structural decisions should be finalised before 30 June.

3. Think About Resetting Your Portfolio for the New Financial Year

Putting the issue of tax to the side for a moment, EOFY is also the best time to reset your portfolio for FY27. Start with asset allocation. Portfolios drift over time. Investors who were overweight uranium or AI at the start of the year may now be significantly overweight after strong sector performance. Conversely, investors who held lithium or small caps may now be underweight after a difficult period. Rebalancing in June can also help with tax optimisation.

Underperformers should be reviewed with a clear head. Every portfolio has positions that have not worked. June is the time to ask whether the thesis is broken or merely delayed. If the thesis is broken, the position may be a candidate for tax‑loss harvesting. If the thesis remains intact, the position may deserve more time.

Risk tolerance should be reassessed. Markets have been volatile across AI, uranium, biotech, and battery materials. Your risk tolerance last year may not match your risk tolerance today. June is the time to recalibrate.

Cash positions are important to consider at EOFY well. Investors need enough liquidity to pay tax, take advantage of July opportunities, and avoid forced selling. June is the month to ensure cash levels are appropriate.

Brokerage statements and cost bases should be checked carefully. Corporate actions such as splits, consolidations, DRPs, and capital returns can distort cost bases. ATO audits often focus on cost‑base errors, and June is the time to correct them.

4. Understanding Tax‑Loss Selling Dynamics

One feature of June that investors often underestimate is tax‑loss selling. As 30 June approaches, stocks with large unrealised losses can come under pressure as investors crystallise losses to offset gains elsewhere. This selling is not driven by fundamentals; it is driven by tax.

Investors who understand this dynamic can position themselves accordingly. If you believe a stock is likely to experience tax‑loss selling, getting in early can be advantageous. Prices often weaken in the first half of June and stabilise in the final days of the month. July can then bring a rebound as the selling pressure disappears and investors re‑enter positions they still believe in.
This pattern is not guaranteed, but it is common enough to be part of the EOFY playbook.

5. Look At Your Super Fund And Administrative Tasks To Be Done

Superannuation should not be overlooked. Investors who want to maximise concessional contributions need to ensure contributions are processed before 30 June. SMSF trustees should review investment strategy documents, asset allocation ranges, and minutes. Pension‑phase investors (i.e. those in retirement phase and drawing down money progressively) should confirm minimum withdrawals have been made.

Administrative tasks matter as well. Portfolio trackers should be updated, watchlists refreshed, and reminders set for ETF and LIC annual tax statements, which often arrive in August or September. Corporate actions that affect tax should be reviewed carefully.

Conclusion

June is the one month where investors can still influence their tax outcome for FY26 while positioning themselves for the new CGT regime. It is also the best time to reset portfolios, reassess risk, and prepare for the opportunities that July often brings. The investors who treat the EOFY as a strategic period tend to enter the new financial year (FY27) with cleaner portfolios, better tax outcomes, and a clearer sense of direction.