Why 30 June and 1 July matter for every educator
We all know that it’s wise to get our finances sorted before June 30.
Doing so can save you from prosecution: the boffins at The Conversation remind us that “the tax office receives about 1000 tip-offs a week from people who know or suspect evasion. Of these, the office deems about 90% warrant further investigation”.
Don’t try to cheat!
But there’s a few other things to keep in mind.
Other end of financial year tax pointers:
· Your IEU membership is fully tax-deductible: don't forget to include it in your claims on your tax form!
· Also tax deductible are contributions to charities such as APHEDA, the Australian union movement's global justice organisation, which strives for the achievement of dignity at work, social justice, economic equality, and the realisation of human rights in our region and around the world. The end of the financial year is the perfect time to donate to an important cause.
· Wait until your income statement is marked “tax ready” on MyGov. The ATO now pre-fills much of your income data, but your employer must finalise it first.
· Don’t rush to lodge on July 1. Other income – like bank interest, dividends or managed fund distributions – can take longer to appear. If you lodge too early, you risk leaving things out.
· Always double-check pre-filled data. Even when information is auto-filled, it’s your responsibility to make sure it’s accurate.
· Declare all your income. The ATO doesn’t see everything. You still need to include things like capital gains from selling shares or property, and any income from side jobs or contract work (including if you use an ABN).
- Salary/wages
- Lump sum/termination payments
- Bank interest
- Dividends
- Employee share schemes
- Managed Funds income
- Rental property income
- Foreign income
- Capital gains
- Cryptocurrency gains.
Deductions for educators
To ensure you know what items you can claim as a tax deduction, head to the ATO’s Tax advice for teachers and education professionals, a (relatively) simple guide to common deductions.
The ATO’s Tax Time Tool comes with a natty picture of a teacher holding an apple and also provides useful information about what you can and cannot claim.
Don’t forget that educators often forget to include the depreciation on technology like computers, laptops, printers, mobile phones and tablets that cost more than $300. These can all be claimed if they are used for work purposes.
You can also claim for conferences, excursions, courses travel, textbook, meal, and accommodation costs linked to your career that come out of your own pocket.
For assistance or advice, particularly if your tax arrangements are complicated, consult an accountant – tax advice is tax deductible too!
Bonuses
If you’re due a bonus, check your contract and make sure you're getting what you deserve. Is your bonus tied to a particular performance outcome or KPI? Is it measurable? If the language isn't clear, you might want to talk to an expert. Ask the union if you are unsure.
Now that we’ve excited you about 30 June, make sure you’re sitting down for our next trick – 1 July!
Big improvements from 1 July 2025
From 1 July, major improvements secured by union members will take effect – delivering real wins for working people.
New Commonwealth Prac Payment – support for student placements
From 1 July 2025, students in nursing, midwifery, teaching and social work will be eligible for a weekly payment of $331.65 while completing mandatory placements.
This new support, secured in the 2024–25 Federal Budget, will help domestic students in higher education or VET (including those studying a Diploma of Nursing) manage the financial pressures of prac requirements.
Union members fought for this – and it's a step towards fairer support for future frontline workers.
Minimum pay rises
The minimum wage will by increase by 3.5% to $24.95/hour or $948/week, benefiting over 2.6 million workers.
Superannuation
The super guarantee rises to 12%, increasing retirement savings for all employees. This applies to all pay from 1 July, regardless of when work was done. Superannuation will now be paid on government-funded Paid Parental Leave for the first time.
Paid Parental Leave
Government-funded leave increases from 20 to 22 weeks, with a goal of reaching 26 weeks by July 2026. Parents can share leave, take it together, or spread it over two years. Once fully rolled out, families will receive up to $24,000 in paid leave support.
Cost of Living Support
Centrelink payments to rise by 2.4%.
Family Tax Benefit Part A:
Under 13: $227.36/fortnight
13 or over: $295.82/fortnight
Family Tax Benefit Part B:
Max rate: $193.34/fortnight
With youngest child 5+: $134.96/fortnight
Skilled Migration Reform
New Core Skills Occupation List to replace existing system, focusing on genuine shortages. Employers must meet stricter standards, including local job advertising and market pay rates. The income threshold for skilled visas rises by 4.6%, but doesn’t apply to existing visas or those lodged before 1 July.
Sources:
theconversation.com
sbs.com.au
Australian Unions
bt.com.au
ato.gov.au