Last Trading Day: Key Strategies for Aussie Investors in 2025

The last trading day isn’t just another calendar date—it’s a crucial moment for every Australian investor. Whether you’re trying to lock in gains, harvest tax losses, or simply rebalance your portfolio, understanding how the final session of the year plays out on the ASX can give you a serious edge in 2025.

Why the Last Trading Day Matters

The last trading day is the final opportunity to buy or sell securities before the market closes out for the year. For the ASX, this typically falls on 31 December—unless it lands on a weekend or public holiday, in which case the date shifts. In 2025, the last trading day is set for Tuesday, 31 December, with markets closing early at 2:10pm AEDT.

• Tax Positioning: Transactions made on the last trading day count toward the current financial year for capital gains and losses.

• Portfolio Adjustments: Fund managers and individual investors often rebalance holdings to reflect annual targets or window-dress for reporting.

• Liquidity and Volatility: Trading volumes can spike, leading to larger-than-usual price swings, especially in small- and mid-cap stocks.

Missing key deadlines can mean waiting another full year to realise certain tax outcomes or rebalance assets. For anyone holding shares, ETFs, or managed funds, this is a day to watch closely.

2025 Updates: New ASX Rules and Trading Hours

This year brings a few noteworthy updates. The ASX has implemented enhanced settlement cycles, moving to a T+1 settlement for equities from October 2025. This means trades executed on the last trading day will settle just one business day later—reducing counterparty risk and speeding up access to proceeds.

• Early Close: On 31 December 2025, the ASX will close at 2:10pm AEDT (rather than the usual 4:00pm). Orders must be placed well before this cut-off.

• Settlement Timing: With T+1, trades settle faster. If you’re looking to crystallise a capital gain or loss for the 2024/25 financial year, you must transact on or before this day.

• ETF and Fund Redemptions: Some fund managers may bring forward cut-off times for buy/sell orders, so check with your provider if you’re planning moves at the last minute.

These changes mean investors must plan ahead and act promptly. Forgetting about the early close or new settlement rules could mean missing out on strategic trades.

Smart Strategies for the Last Trading Day

How can you make the most of this pivotal moment? Here are some practical tips for 2025:

• Harvest Losses: If you’ve got underperforming shares, consider selling them to offset gains elsewhere in your portfolio. With the T+1 settlement, ensure trades are completed by the close to count for this tax year.

• Review Holdings: Rebalance your portfolio to match your risk tolerance and investment goals. Many fund managers do this, which can influence prices and liquidity in certain stocks.

• Watch for Volatility: Be mindful of heightened price swings. Use limit orders to protect against sudden moves, especially in thinly traded shares.

• Check Dividend Timings: If you’re aiming for franking credits or particular dividend cut-offs, confirm eligibility dates with your broker.

• Plan for 2026: Take stock of your current position and set new goals. The last trading day is the perfect moment to reflect and reset for the year ahead.

It’s also wise to double-check deadlines with your broker, as some may impose earlier order cut-offs to manage the busy trading day efficiently.

Real-World Example: Tax-Loss Harvesting in Action

Consider Sarah, a Sydney-based investor who’s had a mixed year. Her tech shares soared, but her mining stocks lagged. On the last trading day, she sells her underperforming miners, locking in a capital loss to offset gains from her tech portfolio. Because the ASX now settles trades on T+1, her transaction is finalised quickly, and her tax position for the 2024/25 financial year is locked in. This strategic move could save her thousands in tax—proof that timing matters.

Conclusion: Don’t Let the Last Trading Day Pass You By

The last trading day is more than a footnote on the calendar—it’s a chance to optimise your portfolio, manage tax, and set yourself up for success in 2026. With new ASX rules, early closures, and heightened activity, 2025’s finale is set to be more important than ever for Australian investors.