TaxSmart Cafe - Wyndham

If you are a trustee of a discretionary (family) trust, this post is critically important. Under Australian tax law, a trust's net income must be distributed to beneficiaries by June 30 each year — and crucially, the trust resolution specifying how income is distributed must also be made by June 30.

If a valid distribution resolution is not made by midnight on June 30, the trustee will be assessed on the trust's net income at the top marginal rate of 45% (plus Medicare Levy). That's an extraordinarily expensive mistake that cannot be rectified after the fact.

What does a valid trust resolution look like? It must be in writing, specify the beneficiaries and the amount or percentage each will receive, be made by the trustee (or all trustees if there are multiple), and be dated no later than June 30. It must also comply with the trust deed — distributions must be made to valid beneficiaries as defined in the deed.

In recent years, the ATO has also focused on trust distributions to adult children and associates — particularly 'circular' arrangements and section 100A anti-avoidance provisions. If your trust distributes to beneficiaries who don't actually receive or benefit from the funds, the ATO may re-characterise those distributions.

With seven days to go, TaxSmart Cafe is processing trust resolutions urgently for clients. Contact us immediately if you haven't done this.

Today is June 22 — there are eight days left in the financial year and this is effectively your final call to make superannuation contributions that will count in 2025–26.

Why June 22 is the effective deadline: most super funds require 2–5 business days to process incoming contributions. June 30 is a Tuesday, which means if your fund needs 5 business days, your contribution must be received by June 23 to be credited before year-end. If you bank with a slower institution or your super fund has longer processing times, June 22 (today) may be the last safe day to initiate the transfer.

Here is the exact process for making a personal deductible contribution:

✅Get your super fund's bank account details (available on your fund's website or member portal).
✅Initiate an EFT from your bank account using your member number as the reference.
✅Wait for confirmation from your fund that the contribution has been received and credited.
✅Lodge a 'Notice of Intent to Claim a Deduction' form with your super fund — this must be done BEFORE you lodge your tax return. Your fund must acknowledge receipt of the notice.

If you're unsure how much you can contribute, your concessional cap is $30,000 minus what your employer has already paid this year (check your super statement). TaxSmart Cafe can calculate this number for you in minutes. Call us now.

There are now just 10 days left in the financial year. This weekend is your final real opportunity to take action before the June 30 deadline. Here is your EOFY weekend action plan — ten tasks you can complete at home or on your phone in the next two days.

Action 1: Log into myGov and review your income statements — are they accurate? Action 2: Check your super balance and confirm your employer has been paying correctly. Action 3: Calculate how much concessional super cap space you have remaining and make a contribution if beneficial. Action 4: Review your investment portfolio — any losses to crystallise before June 30? Action 5: Check your charitable donation records — have you claimed DGR receipts for everything you've given? Action 6: Photograph and file all remaining receipts that you plan to claim as deductions. Action 7: Business owners: reconcile your books through June 19 and identify any year-end opportunities. Action 8: Review your income protection, health, or other insurance premiums — are they tax-deductible and are you up to date? Action 9: Check your Division 7A compliance if you have a private company. Action 10: Call or email TaxSmart Cafe to book your appointment if you haven't already.

Ten tasks, one weekend. Let's finish this financial year strong.

🎄✨ CHRISTMAS IN JULY IS HERE! ✨🎄

At TaxSmart Cafe, we believe tax time is also a time to give back.

This July 2026, for every tax return lodged with us, we’ll donate $1 to support youth participation at Ignite Conference 2026 in Brisbane. Every appointment, every tax return, and every contribution helps create opportunities for young people to grow, connect, and be inspired.

It may seem like a small amount, but together we can make a meaningful impact in our community.

Thank you for trusting TaxSmart Cafe with your tax needs while helping us support the next generation. ❤️

📅 Lodge your tax return this July and be part of something bigger.

Tax losses occur when your allowable deductions exceed your assessable income in a given year. Rather than being written off entirely, tax losses in Australia can be carried forward and offset against future income — potentially saving you significant tax in a future high-income year.

Individuals can carry forward tax losses indefinitely. If your rental property produces a net loss that exceeds your other income, the excess loss is carried forward to future years. If your business makes a loss, that loss may also be available to offset future business or passive income (subject to non-commercial loss rules, which can restrict losses from activities not conducted in a genuinely commercial manner).

Capital losses are treated differently to income losses — they can only be applied against capital gains, not ordinary income. And they cannot be converted or mixed with income losses. However, they carry forward indefinitely and can be used to offset future capital gains.

For the 2025–26 year, if you're sitting on capital losses that have no gains to offset, consider whether there are any gains you could realise before June 30 to use the losses efficiently. Alternatively, assess whether there are strategies to maximise gains in a year when you have available capital losses.

TaxSmart Cafe tracks clients' carried-forward losses across years and ensures they're applied optimally in each return. Never let a carried-forward loss go to waste.

Charitable giving before June 30 is a genuinely win-win financial and social action. You support causes you care about, and you receive a tax deduction that reduces your assessable income for the 2025–26 year. With only 12 days left, now is the time to make those donations.

Remember: to claim a tax deduction, the donation must be $2 or more, made to a Deductible Gift Recipient (DGR) organisation, and must be a genuine gift (not in exchange for goods or services of significant value). You can verify DGR status at ato.gov.au/ABNLookup.

Some giving strategies to consider: make a single larger donation to a cause you're passionate about (more impact, same administrative effort); consider a workplace giving arrangement if your employer offers one (donations come directly from pre-tax salary, making them even more efficient); investigate donor-advised funds or community foundations, which allow you to make a tax-deductible donation now and direct the funds to charities over time.

For high-income earners, charitable giving can be particularly tax-efficient. If you're in the 47% tax bracket (including Medicare Levy), a $10,000 donation effectively costs you $5,300 after the tax benefit. That's a powerful way to amplify the impact of your giving.

TaxSmart Cafe can advise on structuring your charitable giving for maximum tax efficiency. Come in before June 30 and let's make the most of your generosity.

For small business owners, the Capital Gains Tax (CGT) concessions available under Division 152 of the tax law are among the most valuable provisions in the entire tax code. If you're selling your business, transferring assets, or winding up a company, these concessions can dramatically reduce — or even eliminate — your CGT liability.

There are four main small business CGT concessions: the 15-year exemption (if the business is at least 15 years old, the entire capital gain is exempt), the 50% active asset reduction (a 50% reduction in the capital gain for active assets), the retirement exemption (up to $500,000 of capital gain can be exempted if contributed to super or if the taxpayer is over 55), and rollover relief (deferral of CGT on replacement assets).

To access these concessions, you must meet the basic conditions: your aggregated turnover is under $2 million, or the market value of your net business assets is under $6 million. The assets must be active assets used in carrying on a business.

These concessions require careful planning and implementation. The conditions must be met at the time of the sale event — they can't be backdated. TaxSmart Cafe works with business owners who are considering a sale to ensure they meet the conditions, time transactions correctly, and maximise the available concessions.

Planning your next day on the water? 🚤

The Werribee South Boat Ramp offers free, 24/7 public access with six boat ramps, floating pontoons, a fish cleaning station, and plenty of parking for vehicles and trailers.

Before you launch, check Boating Vic Werribee South and Maritime Safety Victoria for weather updates, safety information, and boating resources to help make your trip safe and enjoyable.