The end of the financial year is not just an accounting deadline — it is the single biggest opportunity you have to legally reduce your tax bill. Everything you do (or fail to do) before 30 June 2026 determines how much tax you pay for the entire financial year. This checklist covers the 15 most important actions every Australian small business owner should take before EOFY.
Print this out. Pin it above your desk. Work through it with your accountant in May. The businesses that plan for EOFY consistently pay less tax than those that scramble in September.
The Complete EOFY Checklist for 2025-26
1. Review Your Profit and Loss Statement
Before you can plan, you need to know where you stand. Run a profit and loss report for 1 July 2025 to today. Compare it to last year. Are you tracking higher or lower? This determines the urgency and direction of your tax planning — if you are having a bumper year, accelerating deductions is more valuable.
2. Use the Instant Asset Write-Off
For 2025-26, the instant asset write-off threshold is $20,000 per asset for businesses with aggregated turnover under $10 million. If you have been planning to buy a new piece of equipment, a vehicle, or business tools — buy it before 30 June and have it installed and ready to use. Each item up to $20,000 is fully deductible in the year of purchase.
Important: the asset must be first used or installed ready for use by 30 June. Ordering it is not enough — it needs to be in your possession and operational.
3. Pay Superannuation Early
The June quarter super guarantee is technically due by 28 July. But if you want to claim the deduction in the 2025-26 year, the super must be received by the fund by 30 June — not just submitted. Clearing houses typically take 5 to 10 business days. Submit your June quarter super no later than 15 June to be safe.
The super guarantee rate for 2025-26 is 12%. If you are behind on any previous quarters, catch up now — late super attracts the super guarantee charge (SGC), which is not tax deductible.
4. Write Off Bad Debts
Review your accounts receivable. If you have invoices that are genuinely uncollectable — the customer has gone into liquidation, disappeared, or you have exhausted reasonable collection efforts — write them off before 30 June. A formal bad debt write-off is tax deductible. An invoice that is just sitting unpaid is not.
To write off a bad debt: make a formal decision (minute it if you are a company), remove it from your debtors list, and ensure it is recorded as a bad debt expense in your accounting software.
5. Prepay Up to 12 Months of Expenses
Small businesses using the simplified tax rules (turnover under $10 million) can prepay up to 12 months of deductible expenses and claim the full deduction immediately. Common prepayments include:
- Rent (office, warehouse, equipment yard)
- Insurance premiums (public liability, workers comp, vehicle)
- Software subscriptions (Xero, project management, industry software)
- Industry association memberships
- Interest on business loans
This is especially effective if you are having a high-income year. Prepaying $10,000 in expenses saves $2,500 in tax at the 25% company rate.
6. Conduct a Stocktake
If you carry inventory or consumable stock, you must perform a stocktake at 30 June. This includes raw materials, work in progress, and finished goods. The value of your closing stock directly affects your taxable income — lower closing stock means higher cost of goods sold and lower profit.
You can value stock at cost, market selling value, or replacement value — whichever gives the best tax outcome. Dispose of obsolete or damaged stock before 30 June to legitimately reduce closing stock value.
7. Review Your Business Structure
EOFY is the natural time to assess whether your business structure is still optimal. If you have been operating as a sole trader and your taxable income now exceeds $120,000, you could be paying significantly more tax than necessary. A company structure caps the tax rate at 25%, while sole traders pay up to 45% plus the Medicare levy.
Restructuring mid-year is possible but messier. If your accountant recommends a change, aim to implement it from 1 July — the start of the new financial year.
8. Chase Outstanding Invoices
If you report on a cash basis, any invoices paid before 30 June will be included in this year’s income. If you expect a large payment, consider whether you want it received before or after 30 June. In a high-income year, you might prefer to delay invoicing until July. In a low-income year, bring income forward.
For accrual-basis businesses, income is recognised when the invoice is issued regardless of payment, so timing the invoice date is what matters.
9. Maximise Personal Super Contributions
If you are a business owner (sole trader, company director, or trustee), you can make personal concessional contributions to super up to $30,000 per year (2025-26 cap). These contributions are tax deductible and only taxed at 15% inside the fund, compared to your marginal rate of up to 47%. If you have unused cap amounts from previous years, you may be able to carry them forward.
To claim the deduction, you must lodge a notice of intent with your super fund and receive acknowledgement before lodging your tax return.
10. Review Employee Records
Ensure all employee records are up to date before processing the final pay run of the financial year. Check:
- Tax file number declarations are on file
- Superannuation fund details are current
- Leave balances are accurate
- Payment summaries (now automated via STP) will be accurate
- PAYG withholding has been correctly reported
If you use Single Touch Payroll (STP), your EOFY finalisation must be lodged by 14 July 2026.
11. Reconcile Your Accounts
Make sure every bank account, credit card, and loan is reconciled up to 30 June. Unreconciled transactions mean your financial statements are inaccurate, which means your tax return could be wrong. This is also when you catch duplicate entries, miscoded transactions, and personal expenses sitting in business accounts.
12. Review Motor Vehicle Claims
If you use a vehicle for business, make sure your logbook is current (a logbook is valid for five years but must be representative of your typical business use). Check the car limit for depreciation — the 2025-26 limit is $69,674. If you are claiming actual expenses, tally fuel, insurance, registration, and maintenance.
13. Check Your PAYG Instalments
Review your PAYG instalment amounts. If your income has dropped this year compared to last, you may be overpaying. You can vary your PAYG instalments to reduce cash flow pressure — just be aware that if you vary too low, interest may apply on any shortfall at tax return time.
14. Document Home Office and Working-from-Home Claims
If you work from home (even partially), ensure you have records to support your claim. Under the revised fixed rate method, you can claim 67 cents per hour for every hour worked from home, but you need a record of the actual hours — a timesheet, diary, or roster. If you use the actual cost method, you need receipts for electricity, internet, phone, and a reasonable basis for apportioning.
15. Book Your Tax Planning Meeting
This is the most important item on the list. A one-hour tax planning meeting with your accountant in May or early June can identify thousands of dollars in savings. We work primarily with trade businesses including arborists, landscapers, and construction operators, so we know exactly which deductions and strategies apply to physical, asset-heavy businesses.
Your accountant should review your year-to-date profit, recommend asset purchases, check your structure, and discuss super contributions. If your accountant does not offer a pre-EOFY planning meeting, that is a red flag.
EOFY Timeline: Key Dates for 2026
| Date | Action |
|---|---|
| Early May | Run year-to-date P&L, book tax planning meeting |
| Mid-May | Identify asset purchases, prepayment opportunities |
| 1 June | Order any assets needed for instant write-off |
| 15 June | Submit June quarter super to clearing house |
| 25 June | Final reconciliation, write off bad debts, prepay expenses |
| 30 June | Financial year ends — all actions must be completed |
| 14 July | STP finalisation due |
| 28 July | June quarter BAS and super due |
| 31 October | Self-lodged tax return due |
| 15 May 2027 | Agent-lodged tax return due |
Need Help With EOFY Planning?
Do not leave it until June. The earlier you start planning, the more options you have. At Arbour Advisory, we offer free EOFY planning consultations for small business owners. We will review your year-to-date position and give you a clear action plan. Call 02 8378 2421 or book online.
Frequently Asked Questions
When is the end of the financial year in Australia?
The Australian financial year ends on 30 June. For the 2025-26 financial year, the deadline is 30 June 2026. Most EOFY tax planning actions must be completed before this date to count for the current financial year. Your tax return is then due by 31 October 2026 if self-lodging, or by 15 May 2027 if lodging through a registered tax agent.
What is the instant asset write-off threshold for 2025-26?
For the 2025-26 financial year, the instant asset write-off threshold is $20,000 per asset for small businesses with aggregated turnover under $10 million. The asset must be first used or installed ready for use by 30 June 2026 to qualify. Assets costing $20,000 or more are placed in the small business simplified depreciation pool and depreciated at 15% in the first year and 30% each subsequent year.
When is superannuation due for the June quarter?
The June quarter super guarantee payment is technically due by 28 July 2026. However, to claim the deduction in the 2025-26 financial year, the payment must be received by the employee’s super fund by 30 June 2026 — not just sent. Most clearing houses take 5 to 10 business days to process, so you should submit super payments no later than mid-June to be safe.
Should I prepay expenses before 30 June?
Prepaying up to 12 months of deductible expenses (such as rent, insurance, subscriptions, or interest) before 30 June brings the deduction into the current financial year. This is a legitimate and common tax planning strategy. It is most effective when you expect your income to be higher this year than next. Small businesses using cash accounting can claim the deduction when the payment is made.
What happens if I miss the EOFY deadline for tax planning?
If you miss 30 June, you cannot backdate deductions into the previous financial year. This means lost tax savings — for example, an asset purchased on 1 July instead of 30 June pushes the deduction into the next financial year, delaying the tax benefit by 12 months. Start your EOFY planning in May to avoid missing opportunities.
