Investment and portfolio considerations before EOFY

As the end of financial year (EOFY) rapidly approaches, investors have a timely opportunity to review their investment positions and consider strategic changes ahead of the June 30 deadline. 

Using the weeks before EOFY enables investors to position their portfolios in a way that best aligns with their short and long term financial goals.

This is especially important now that the 2026-2027 Federal Budget is in, bringing with it some important considerations for investors, as well as for individuals and businesses using discretionary trust structures.

Key focus areas for your pre-EOFY investment review

Change of circumstances – Over the course of a financial year, changes in your personal or financial situation may warrant adjustments to your investment portfolio and broader financial arrangements. For example, you may have purchased a property and taken on additional debt, or experienced a change in employment that has altered your cashflow position. Key changes to your circumstances may unlock new opportunities or strategies that were not previously available or suitable.

Portfolio drift – When constructing a portfolio, investors typically target specific allocations to key asset classes (such as Australian shares, international shares, property and fixed interest). Over time, differences in investment performance can cause these allocations to drift from their original targets. As a result, it may be appropriate to periodically review and rebalance the portfolio to ensure it remains aligned with your intended asset allocation and risk profile.

Investment performance – The end of financial year provides a useful opportunity to review the underlying performance of your investments. Have your holdings performed in line with expectations? Are there more suitable alternatives available? Have changes in the economic environment impacted the outlook for certain assets, warranting a reassessment? Taking the time to undertake this review can help ensure your portfolio remains well-positioned to meet your objectives in the year ahead.

Maximising superannuation contributions – June 30 is the deadline for making contributions into superannuation. Reviewing your eligibility to contribute, as well as your available contribution caps, may provide an opportunity to make meaningful additions to your retirement savings while also reducing your taxable income for the year. This may include utilising carry-forward concessional contributions or bring-forward non-concessional contributions where eligible.

From 1 July 2026, the concessional contribution cap is set to increase from $30,000 to $32,500, while the non-concessional contribution cap will rise from $120,000 to $130,000. These upcoming changes may influence how you approach contributions and investment planning for the financial year ahead. Division 296 will also be an important consideration for individuals with superannuation balances exceeding $3 million.

New regulatory changes – In addition to the revised superannuation caps coming into effect in the new financial year, there are several regulatory changes that have emerged from the government’s latest budget that will affect investment decisions moving forward. The key ones are:

1. Discretionary trusts are proposed to face a minimum 30% tax from 1 July 2028, payable by the trustee. Beneficiaries will still need to declare their trust income in their tax returns and, with the exception of corporate beneficiaries, will receive non-refundable credits for the tax payable by the trustee. The interaction of these rules with corporate beneficiaries (such as bucket companies) is expected to reduce the effectiveness of these structures and add additional layers of taxation. Given this, it is increasingly important to review whether your current structuring remains appropriate in light of these changes.
2. Negative gearing is proposed to no longer be permitted for investment properties purchased after 12 May 2026, with the exception of new builds and certain eligible government housing programs. However, investment properties acquired prior to this date will continue to qualify under the existing rules. As a result, these changes may reshape property investment strategies and should be factored into forward planning.
3. Capital gains tax (CGT) is undergoing structural changes, where it has been proposed that the 50% discount will be removed and replaced with an indexation method (where the original cost base is indexed yearly from 1 July 2027, so only ‘real’ gains are taxed). There will also be a minimum 30% tax rate on overall capital gains moving forward, except for superannuation where all existing CGT discounts still apply. Additionally, assets acquired before September 1985 (previously exempt from CGT) will be subject to CGT from 1 July 2027, with the cost base reset to their market value at that date.

Get expert help to review your investment portfolio

Whether you’re an early-stage investor or have an extensive portfolio with a variety of assets, RSM’s experienced financial advisers are here to support you.

We can assist you to:

• review and evaluate your portfolio performance against your objectives and benchmarks
• assess the impact of personal, market and regulatory changes on your investment strategy
• develop tailored strategies aligned with your goals, risk profile and time horizon
• proactively manage and adjust your portfolio to ensure it remains appropriately positioned over time

As EOFY closes in, make the most of this opportunity to review your position and implement informed, proactive strategies ahead of the new financial year.

To speak with an experienced adviser from RSM’s financial advisory team, please contact your local RSM office.