How to Prepare for EOFY 2025 and What Possible Rate Cuts Could Mean for You

Published by Mary Nebotakis, Managing Director, Natloans (B. Eco, Dip. Financial Services) on 19 June 2025; source modified 3 September 2025. This page preserves the article’s five EOFY topics and bank forecasts, with corrections to tax conditions and rate chronology. It is a historical 2024–25 planning article, not a current tax-year eligibility assessment or lending quote.

Why EOFY Planning Matters for Borrowers and Investors

The period leading up to 30 June is one of the most useful windows in the financial calendar. For homeowners, investors, and business owners alike, it is an opportunity to review deductible expenses, assess investment positions, and consider how anticipated changes to interest rates might shape borrowing decisions in the year ahead. This article walks through the key areas worth attention before the end of the 2024–25 financial year.

Maximising Tax Benefits Before 30 June

A handful of well-timed actions before the financial year closes can help reduce your tax liability and strengthen your overall financial position. The following strategies were highlighted in the original article as practical steps to consider. Each involves specific eligibility conditions — confirm your own situation with a tax professional or finance adviser before proceeding.

1. Prepay Deductible Expenses

Prepayment only helps where the expense is deductible and the timing rules permit a deduction. The ATO prepayment guide explains the 12-month rule for eligible taxpayers and expenditure: the covered service period must not exceed 12 months and must finish no later than the end of the following income year. Other rules and exclusions can require apportionment. Investment-loan interest or insurance is not deductible merely because it is paid before 30 June; check the expense’s purpose and relevant conditions.

2. Make Additional Superannuation Contributions

A personal super contribution may reduce taxable income only if eligible and claimed as a deduction. Contribution caps and age/work conditions can matter. The ATO requires a valid notice of intent within the applicable deadline and fund acknowledgement before claiming. The notice deadline is the earlier of tax-return lodgement or the end of the following income year, subject to other validity conditions. Government co-contributions are a separate benefit for eligible after-tax contributions: the portion claimed as a deduction cannot also earn a co-contribution. Contributions must reach the fund by 30 June for that year’s co-contribution; initiating a bank transfer is not proof of receipt.

3. Use the Instant Asset Write-Off (Small Business)

For 2024–25, the enacted ATO measure applied to eligible small businesses with aggregated turnover below $10 million. Under simplified depreciation, an eligible asset’s cost had to be less than $20,000 and it had to be first used or installed ready for taxable use between 1 July 2024 and 30 June 2025. Buying, ordering or securing finance by the deadline alone was insufficient. The deductible amount is the business-use portion; eligible new and second-hand assets can qualify, subject to exclusions. These are historical rules, not a statement of the limit for later years.

4. Review Your Investment Portfolio for Capital Gains

Portfolio review can identify gains and losses, but an unrealised fall in value alone does not create a realised capital loss to offset. The ATO’s TR 2008/1 discusses Part IVA and wash-sale arrangements. Its application is not confined to an immediate repurchase or a sole tax purpose: a dominant tax-benefit purpose can be sufficient after considering the statutory factors. A commercial element does not automatically make an arrangement safe. Obtain tax advice before selling and reacquiring to generate a loss.

5. ATO Debt Interest: Change Effective from 1 July 2025

This is an implemented change, not merely a proposal: ATO general interest charge (GIC) and shortfall interest charge (SIC) incurred on or after 1 July 2025 are not deductible. The date the charge is incurred matters, including where the underlying tax debt is older. GIC or SIC incurred before that date can be deductible in the income year incurred. This is not a blanket rule about all bank-loan interest, nor is it limited to business taxpayers. Review the cash-flow and total cost of any repayment or refinance proposal.

EOFY 2025 Action Checklist — Summary

Action	Who It May Apply To	Key Condition to Confirm
Prepay deductible expenses	Investors, property owners	Deductible purpose and applicable prepayment timing rules; payment before June 30 alone is insufficient.
Additional super contributions	Employees, self-employed individuals	Contribution caps, notice and acknowledgement for a deduction; no co-contribution on the deducted portion.
Instant asset write-off	Small business owners	2024–25: aggregated turnover below $10m; simplified depreciation; cost strictly below $20,000; first used/ready for use in that year.
Portfolio review for CGT	Investors with shares or property	A realised loss and CGT rules; Part IVA may deny a wash-sale tax benefit. A commercial element alone is not a safe harbour.
ATO debt strategy review	Taxpayers with ATO GIC or SIC, including businesses using payment plans	GIC/SIC incurred on or after 1 July 2025 are not deductible; the rule is enacted.

What Possible Rate Cuts Could Mean for You

The June 2025 article attributes the following projections to Westpac and NAB but provides no dated bank releases. They are preserved as source attributions, not independently authenticated forecasts. Its “current 4.35%” and future May 2025 first-cut wording was already stale at publication.

Bank Forecasts as Published (June 2025 Context)

• Westpac (as cited in the source, June 2025): expected the cash rate to fall to 2.85% by mid-2026, with four 0.25 percentage point cuts along the way.
• NAB (as cited in the source, June 2025): predicted the rate would drop from 4.35% to around 3.1% by early 2026, with first cuts potentially starting in May 2025.

For verified chronology, the RBA cut to 4.10% on 18 February 2025 and to 3.85% on 20 May 2025, both before the article’s 19 June publication. Thus 4.35% was not the current target at publication. The attributed 2.85% and 3.1% predictions are not actual outcomes or current guidance.

What Lower Rates Could Mean in Practice

A cash-rate cut does not automatically or fully change every variable loan rate or required repayment. Check the lender’s actual pricing and effective date. Borrowing capacity also depends on income, expenses, liabilities, assessment buffers and policy. Compare scenarios using the offered loan terms rather than assume a forecast cut creates approval or savings.

Key Considerations for Borrowers and Property Buyers

• Refinancing decisions: If rates are expected to fall, the case for fixing at current rates becomes less straightforward. Review your loan structure and consider whether a fixed, variable, or split arrangement best suits your goals and risk tolerance.
• Borrowing capacity: Lower rates can improve the amount lenders are willing to offer, but serviceability assessments include buffer rates. Your actual borrowing capacity should be assessed based on your current income, expenses, and liabilities.
• Don't plan solely on projections: Rate forecasts from major banks are informed estimates, not certainties. A sound financial plan accounts for a range of rate scenarios.
• Seek tailored advice: A finance broker can help you model different scenarios and identify loan structures that work across a range of rate environments.

Related Reading

• Smart End of Financial Year Finance Solutions — Natloans
• Two Smart Ways Debt Consolidation Can Help You Take Control — Natloans

Frequently Asked Questions

What does this Natloans article discuss?

The source covers prepayments, super, asset deductions, capital gains and ATO interest, plus bank rate forecasts. The explanations here correct historical eligibility and chronology. The source’s 4.35% cash-rate premise was already outdated on its June 2025 publication date.

Is this article a current quote or eligibility assessment?

No. This is a historical article published on 19 June 2025, with explicit corrections and primary-source context. It is not a current quote, approval or individual tax determination. Check the rules for the actual income year and circumstances before acting.

Can I prepay investment loan interest before 30 June to get a tax deduction?

Possibly, where the expense is deductible and the prepayment rules allow it. A payment before June 30 is not enough by itself. Check the eligible service period, taxpayer category and exclusions; deductions may need to be spread over time.

What is the instant asset write-off and who can use it?

For 2024–25, an eligible small business using simplified depreciation could deduct the business portion of an eligible asset costing strictly less than $20,000, first used or installed ready for taxable use in that year. Aggregated turnover had to be below $10 million. Exactly $20,000 fails that cost test. Purchase date alone is insufficient; this answer does not state a current-year threshold.

What is a wash sale and why does it matter?

Wash-sale arrangements can create a claimed loss while maintaining or restoring economic exposure. The ATO considers Part IVA and the objective statutory factors; a dominant tax-benefit purpose can suffice. Neither a delay in repurchase nor an additional commercial purpose automatically establishes safety. Seek advice on the actual arrangement.

What changed for ATO debt interest from 1 July 2025?

GIC and SIC incurred on or after 1 July 2025 are not deductible, even if the underlying debt arose earlier. The measure is implemented, not merely proposed. Charges incurred before that date can be deductible in the year incurred. It is not a statement about every kind of interest expense.

What were the major bank rate forecasts mentioned in this article?

Natloans attributed 2.85% by mid-2026 after four 0.25 percentage-point cuts to Westpac, and about 3.1% by early 2026 from 4.35%, with cuts potentially starting May 2025, to NAB. No dated bank releases are supplied. RBA cuts had already occurred in February and May 2025, taking the target to 3.85% before publication. Treat these as unverified historical forecast attributions, not a current rate or proven outcomes.

Should I fix or stay variable if rate cuts are expected?

Compare actual fixed, variable and split offers with your goals and budget across several rate scenarios. Fixing offers repayment certainty for the agreed period but can involve break costs or feature limits; a variable loan may change, without guaranteed full pass-through of a cash-rate cut. A forecast alone cannot establish which choice will cost less.

How can Natloans help with EOFY planning or rate decisions?

Natloans can assist with reviewing your loan structures, exploring refinancing options, and helping you understand how rate movements might affect your borrowing position. For personalised guidance, call Natloans on 1300 955 791.

Next Steps

If you would like to discuss your options before or after the end of the financial year — whether that involves reviewing your current loan, exploring refinancing, or understanding how possible rate changes could affect your position — the Natloans team is available to help.

Call 1300 955 791 to speak with a member of the Natloans team. For related reading, see Smart End of Financial Year Finance Solutions and Two Smart Ways Debt Consolidation Can Help You Take Control.

Before making an EOFY commitment

1. Identify the relevant income year, eligible taxpayer and genuine purpose of the expenditure.
2. Confirm the timing evidence: an invoice or finance approval is not the same as installation, readiness for use or receipt by a super fund.
3. Separate cash paid, loan principal, interest, fees and the amount actually deductible.
4. Check the effect on cash reserves and repayment obligations; a tax deduction does not reimburse the full spending.
5. Keep eligibility records and obtain specific tax advice before relying on a benefit.

Does private use reduce the asset-cost threshold?

No. The ATO distinguishes total eligible cost from the deductible business portion. An asset above the applicable cost limit does not become eligible for instant write-off simply because its business-use percentage produces an amount below the limit. Apply the relevant GST treatment and exclusions when calculating cost. This clarification supports the historical 2024–25 discussion.