EOFY Checklist For Sole Traders

By Harry Moustakas and Tom Kouloukakis

Quick Summary: As a sole trader, you have access to many of the same deductions and strategies as larger businesses. The bad news: without an employer or payroll team handling things for you, it’s easy to let EOFY slip by without making the most of what’s available. Here’s your checklist.

Tax and accounting

Claim every legitimate deduction 

Home office expenses (the ATO’s fixed rate is $0.67 per hour worked from home), vehicle costs, phone and internet, professional development, tools and equipment. The deductions are there, but only if you’ve kept records. If your record-keeping has been patchy this year, get it sorted before June 30.

The $20,000 instant asset write-off applies to you too 

Sole traders are eligible if your turnover is under $10 million. Same rules as any small business: each asset must cost under $20,000 and be installed and ready for use before June 30. You can claim multiple assets. This threshold drops back to $1,000 from 1 July 2026 unless extended (ATO).

Prepay deductible expenses

You can prepay certain expenses for up to 12 months in advance and claim the deduction this year. Professional memberships, insurance premiums, subscriptions. If you’re going to pay them anyway, paying before June 30 can bring the deduction forward.

Consider whether your structure still fits

At what point does a sole trader structure cost you more in tax than it saves in simplicity? If your net income is consistently above $120,000, it’s worth having the conversation about whether a company or trust structure would serve you better. This isn’t a June fix, but starting the conversation now means you could have a better structure in place by 1 July.

Financial planning and wealth management

Make personal deductible super contributions 

As a sole trader, you don’t have an employer contributing SG for you (unless you’re paying yourself through a structure). You can make personal contributions up to the $30,000 concessional cap and claim a tax deduction. You’ll need to submit a Notice of Intent to your super fund before lodging your tax return.

Carry-forward is your friend 

If your super balance is under $500,000 and you’ve had lean years where you didn’t contribute much, you may have significant unused cap space. Some sole traders have up to $167,500 in available cap space. This is one of the most under-used strategies we see (ATO).

Review your income protection

Sole traders don’t get sick leave. If you can’t work, the income stops. Income protection premiums paid outside of super are generally tax-deductible. If you don’t have cover, now is the time to sort it out. If you do have cover, check the benefit amount still matches what you actually earn.

Loans and debt

Get your home loan reviewed

Think of your mortgage like a phone plan. You wouldn’t stay on a plan from 2019 without checking what else is out there. Yet that’s exactly what millions of Australians do with the biggest debt of their lives. The difference between the best and worst variable rates can be 0.50% or more. On a $1 million mortgage, that’s roughly $5,000 a year.

Maximise your offset account 

Every dollar sitting in your offset account reduces the interest you’re charged. If you’ve got savings scattered across multiple accounts, consolidating into your offset before EOFY could save you thousands over the life of your loan.

Separate your debt 

If you’re using personal funds for business or vice versa, your loan structure might be costing you deductions. Interest on borrowings used for income-producing purposes is tax-deductible. Interest on personal debt isn’t. Getting the structure right can make a real difference.

The Bigger Picture: What You Can’t Fix in Four Weeks

These EOFY strategies are valuable. But they’re band-aid solutions compared to what year-round planning can achieve.

The most effective tax strategies take time to implement. Business structure optimisation, family trust establishment, succession planning and tax-effective wealth transfer all require months of careful planning.

If you’re reading this thinking “I wish I’d started this conversation six months ago,” take that as a sign. The best time to start planning for 2026–27 is right now.

At Navigate Advisory, we combine financial planning, accounting, business advisory, lending and property advisory under one roof. This means we look at your entire financial picture, not just one piece of it. When your investments, super, business structure, lending and tax strategy all work together, you achieve better outcomes than treating each area in isolation.

Because when your entire financial world makes sense, you gain the power to say ‘yes’ to bold life choices.

Book a 15-minute introductory call: navigateadvisory.com.au/contact

Find out more about our services: navigateadvisory.com.au

This is part of our EOFY series. We’ve also written guides for Business Owners, PAYG Employees, Retirees.

Navigate Advisory has offices in Balmain, Brighton-Le-Sands and Hurlstone Park.

Navigate Advisory offers complete financial confidence through financial planning, accounting, business advisory, lending and property advisory, all in one place.

Frequently Asked Questions

Yes. Sole traders with turnover under $10 million are eligible for the $20,000 instant asset write-off. Each asset must cost less than $20,000 and be installed and ready for use before June 30, 2026. You can claim multiple assets.

You make a personal contribution to your super fund, then submit a Notice of Intent to Claim a Tax Deduction form to your fund before lodging your tax return (or before rolling over or withdrawing the money). Your fund will acknowledge the notice, and you can then claim the deduction on your tax return. The concessional cap is $30,000 for 2025–26.

You can use the ATO’s fixed rate method of $0.67 per hour worked from home, which covers electricity, internet, phone, stationery, and depreciation of home office furniture. Alternatively, you can calculate actual costs. You’ll need a record of hours worked from home, such as a timesheet, roster or diary.

There’s no single threshold, but if your net business income is consistently above $120,000, the tax savings from a different structure can outweigh the compliance costs. A company pays a flat 25% tax rate (for base rate entities), compared to marginal rates of 30% to 47% for individuals. A trust offers income distribution flexibility. Both options have their own compliance requirements and costs, so get advice specific to your situation.

Income protection premiums are generally tax-deductible when paid outside of super. For sole traders who don’t have employer-provided sick leave, income protection is particularly important. The premium is claimed as a deduction on your tax return. Premiums paid through super are not separately deductible but the contributions may be.

We help sole traders look beyond the tax return to the bigger picture. That includes super strategy, structure review, lending and investment planning, all coordinated through one team. Book an introductory chat at navigateadvisory.com.au/contact.

Any advice provided in this article is general advice only and does not take into account the objectives, financial situation or needs of any particular person. It does not represent legal, tax, or personal advice and should not be relied on as such. You should obtain financial advice relevant to your circumstances before making any decisions.