Why EOFY Catches So Many Business Owners Off Guard
Every year, thousands of Australian small business owners hit June in a scramble — chasing invoices, trying to reconstruct records, and discovering deductions they can no longer claim because the window has already closed.
The businesses that come out of EOFY in the best shape aren't the ones with the most complicated tax strategies. They're the ones who start preparing in April and May, giving themselves time to make decisions rather than just reacting to their tax bill.
This checklist covers every key EOFY task for the 2025–26 financial year, including some critical changes this year that affect every Australian employer.
Key EOFY Dates at a Glance
Before diving into the checklist, pin these dates:
DateWhat's Due30 June 2026End of the financial year. Last day for instant asset write-off. Super must clear by this date to be deductible. Trust distribution resolutions due.1 July 2026Payday Super begins. SBSCH closes. New award rates take effect.14 July 2026STP finalisation deadline — employee income statements must be finalised.28 July 2026Q4 super guarantee due (final quarterly super payment under the old rules).31 October 2026Tax return due for self-lodgers (individuals, sole traders, companies).15 May 2027Extended tax return deadline if you engage a registered tax agent by 31 October 2026.
That last point is worth noting: lodging through a registered agent doesn't just take the work off your plate — it gives you an extra 6+ months to lodge your 2025–26 return.
Part 1: Get Your Books in Order
This is the foundation everything else is built on. Your accountant cannot prepare an accurate return from incomplete records — and gaps discovered in August cost significantly more to fix than gaps found in April.
Your bookkeeping checklist:
- Reconcile all bank accounts — every transaction should be categorised and match your statements exactly
- Reconcile your credit card accounts — these are often left until last and cause the most headaches
- Review your GST coding — check that income and expenses are correctly coded (taxable, GST-free, input-taxed) before your final BAS for the year
- Code any uncategorised transactions — don't leave these sitting in a suspense account
- Review accounts receivable — identify debtors unlikely to pay and consider writing off genuine bad debts as a deduction
- Review accounts payable — confirm outstanding creditors are accurately recorded
- Ensure all income is recorded — including any cash payments, barter transactions, or government grants
The single best thing you can do before 30 June is hand your accountant clean, reconciled books. If you're not sure your books are in shape, this is the moment to reach out for help — not after the financial year closes.
Part 2: Maximise Your Deductions Before 30 June
EOFY is your last opportunity to act on tax-saving strategies for the 2025–26 year. Once 30 June passes, the window closes.
Claim the $20,000 Instant Asset Write-Off — Before It Expires
The $20,000 instant asset write-off is available to small businesses with turnover under $10 million, for eligible assets first used or installed ready for use before 30 June 2026.
If you've been thinking about buying new equipment, tools, computers, furniture, or other business assets — now is the time to act. The threshold applies per asset, not in total, so multiple purchases each under $20,000 can all be written off immediately.
Assets purchased after 30 June 2026 cannot access this concession for the 2025–26 year. Don't leave this until the last week — you need the asset to be purchased and put to use before the year ends.
Pay Super Before 30 June — Not Just by 28 July
This is one of the most common EOFY mistakes: business owners assume that paying the Q4 super contribution by the 28 July due date means it's deductible in the 2025–26 year.
It isn't.
Super contributions are deductible in the year they're received by the super fund — not the year they're due. To claim super as a deduction in 2025–26, the payment must clear your employees' funds before 30 June. That typically means paying at least a week before the year ends to allow for processing time.
This applies to both employee super and personal super contributions if you're a sole trader making voluntary contributions.
Prepay Deductible Expenses
Small businesses can claim a deduction for expenses prepaid before 30 June, as long as the benefit period doesn't exceed 12 months from the payment date. Common candidates include:
- Business insurance renewals
- Software subscriptions (Xero, Microsoft 365, industry tools)
- Professional memberships and association fees
- Rent (where applicable)
- Interest on business loans
If you have cash available and these expenses are coming up anyway, prepaying them pulls the deduction into this financial year.
Check Your Vehicle Records
If you claim vehicle expenses using the logbook method, check that your logbook is current (logbooks must be updated every five years or when the pattern of business use changes significantly). Ensure all fuel, servicing, registration, and insurance costs for the year are coded correctly.
If you use the cents per kilometre method, make sure you have a reasonable basis for the number of kilometres claimed — the ATO may ask for this in an audit.
Review Home Office Records
If you work from home, you can claim under the fixed rate method of 70 cents per hour for hours worked from home. You need actual records of the hours — a diary, timesheet, or calendar log. The ATO no longer accepts a four-week representative sample; they want records for the full period claimed.
Part 3: Payroll and Super Obligations
If you have employees, EOFY brings specific payroll compliance tasks. Most of these need to be completed in the weeks immediately after 30 June.
Payroll EOFY checklist:
- Reconcile total gross wages paid during the year against your payroll software records
- Confirm PAYG withholding has been correctly calculated and remitted to the ATO throughout the year
- Check leave balances are accurate and correctly recorded in your payroll system
- Review any employee terminations during the year — ensure termination payments were processed and taxed correctly (these have specific withholding rules)
- Verify award rates — the national minimum wage and all Modern Award rates increased by 3.5% from 1 July 2025. If you haven't confirmed your rates since then, check now
- Submit STP finalisation by 14 July 2026 — this is mandatory and enables your employees to access their income statements for their own tax returns
Prepare for Payday Super (Starting 1 July 2026)
From 1 July 2026, super moves from quarterly to per-payday. This means:
- Super must reach employee funds within 7 business days of each payday
- The ATO's Small Business Superannuation Clearing House (SBSCH) closes permanently
- Your payroll software must be updated and configured for more frequent super payments
If you're still using the SBSCH, you must transition to an alternative SuperStream-compliant clearing house before 30 June. Contact your payroll software provider now to confirm their Payday Super readiness — this is not something to leave until the last week of June.
Part 4: Review Your BAS Position
Before EOFY, confirm:
- All BAS lodgements for 2025–26 are up to date — heading into EOFY with overdue BAS is a red flag that can trigger ATO scrutiny
- Your GST registration status is current — if your turnover crossed $75,000 this financial year and you haven't registered for GST, that's an urgent issue to resolve
- Your Q3 BAS (January–March 2026, due 28 April 2026) has been lodged and paid
- Ensure your Q4 BAS is in the pipeline for lodgement in July
Part 5: Record-Keeping — What You Must Keep and For How Long
The ATO requires small businesses to retain all tax-related records for five years from the date of lodgement. Essential records include:
- Income invoices and sales records
- Expense receipts and invoices
- Bank and credit card statements
- Payroll records, payslips, and TFN declarations
- Asset purchase records and depreciation schedules
- Vehicle logbooks (kept for five years from last use)
- Super contribution records
- BAS lodgement confirmations
Digital copies are accepted — scanning paper receipts and storing them in a cloud-linked folder or your Xero file is fine. The requirement is that records are accessible and legible if requested.
EOFY is a good time to tidy up your digital records and back up anything stored locally.
Part 6: Look Ahead to the New Financial Year
EOFY isn't just about closing out the year — it's the best time to assess how you're set up going forward.
New financial year prep:
- Update your payroll for new award rates — Fair Work announces the Annual Wage Review result in June each year, with new rates taking effect from the first full pay period on or after 1 July
- Review your business insurance — EOFY is a natural time to check whether your coverage has kept pace with business growth, new equipment, or additional staff
- Set a budget and cash flow forecast for 2026–27 — knowing your financial position as you enter a new year enables better decisions and reduces surprises
- Talk to your bookkeeper about any structural opportunities — are you operating in the right entity structure? Are you making the most of available concessions? These conversations are most productive when your EOFY records are fresh
Frequently Asked Questions
When can I lodge my 2025–26 tax return? From 1 July 2026. Self-lodgers have until 31 October 2026. If you engage a registered tax agent by 31 October, the deadline generally extends to 15 May 2027.
What if I've been making super contributions but they haven't all cleared before 30 June? Only contributions that have been received by the super fund before 30 June are deductible in 2025–26. Contributions clearing after that date are deductible in 2026–27. This is why paying super at least a week before 30 June matters.
Do I need to do a stocktake at EOFY? If your business holds inventory, yes — a stocktake as close as possible to 30 June is required. The ATO allows three methods for valuing closing stock: cost price, market selling value, or replacement value. You can choose the method that best reflects your position.
My books are a mess — is it too late to sort them out before 30 June? Not necessarily. Catch-up bookkeeping takes time, but starting now is always better than waiting. Girl Friday Australia helps businesses get their records in order before EOFY, even when they're starting from behind.
The Difference Between a Stressful EOFY and a Smooth One
The businesses that find EOFY genuinely manageable have one thing in common: their books are up to date throughout the year, not just in June.
When your accounts are reconciled month by month, your EOFY tasks shrink to a checklist — not a crisis. Your accountant can finalise your return quickly, your deductions are already documented, and you enter the new financial year with a clear picture of where you stand.
Girl Friday Australia helps Australian small businesses, sole traders, and tradies keep their books clean year-round — so that when June arrives, EOFY is a non-event.
✅ Registered BAS Agent ✅ Xero Certified Advisor & Gold Partner ✅ EOFY preparation and catch-up bookkeeping ✅ 100% remote, Australia-wide ✅ No lock-in contracts
Get a free quote or book a discovery call — and make this your smoothest EOFY yet.
This article is general information only and does not constitute tax or financial advice. Obligations vary depending on business structure, industry, and individual circumstances. Always consult a registered tax agent for advice specific to your situation.
Girl Friday Australia provides bookkeeping, BAS lodgement, payroll management, EOFY preparation, and business admin support to small businesses, sole traders, and tradies across Australia.