Quick answer
Your first EOFY (end of financial year, 30 June) is about getting records complete and decisions made on time. In May and June: reconcile your bank accounts, chase unpaid invoices, count stock, check super is paid, and talk to your accountant about any asset purchases. In July: lodge your June-quarter BAS, gather your records for your tax return and review what the year taught you.
Key points
- The Australian financial year ends on 30 June.
- Start in May: most useful EOFY decisions need time.
- Check eligible asset purchases with your accountant; the $20,000 instant asset write-off is now permanent for eligible small businesses.
- Use July to lodge, file and plan the year ahead.
Your first end of financial year in business can feel like a pop quiz you didn’t study for. Everyone seems to be talking about “EOFY”, sales ads are shouting about tax deductions, and your accountant is suddenly very busy. Take a breath. This checklist puts it in order, in plain English.
The Australian financial year ends on 30 June. The trick to a calm EOFY is starting in May, because the most useful decisions need a bit of time.
Why does your first EOFY matter so much?
Three reasons:
- Your first tax return as a business owner is built from this year’s records. Tidy records now mean a smoother, cheaper return.
- Some decisions have to be made before 30 June, such as whether and when to buy assets.
- Your first full year of figures becomes your track record. When you want to borrow later, lenders will look at exactly these numbers. Our lesson on how long you’ve traded explains why.
May: get your records in order
Start with the paperwork, because everything else depends on it.
- Reconcile your bank accounts. Make sure every transaction in your business account is recorded in your books or spreadsheet.
- Sort receipts. Match purchases to receipts. Digital copies are fine; a folder per month helps.
- Separate personal items. If you’ve used the business account for personal spending, flag those transactions now. business.gov.au notes that keeping private and business transactions separate saves time and money at tax time.
- List your debtors. Who owes you money? Chase anything overdue now rather than in July.
- List what you owe. Supplier bills, loans, tax. A clear picture helps your accountant and your cash flow forecast.
June: make your decisions
Asset purchases
This is where EOFY advertising gets loud. Here’s the calm version.
The ATO says the $20,000 instant asset write-off is permanent from 1 July 2026. Eligible small businesses (aggregated annual turnover under $10 million) can immediately deduct the cost of eligible assets costing less than $20,000 each. The limit applies per asset, and the asset must be first used or installed ready for use in the income year you claim it.
Three beginner rules:
- Buy it because the business needs it, not for the deduction. A deduction reduces tax on profit; it doesn’t make something free.
- Timing matters. Buying on 29 June but not having it installed until July may change which year it counts in.
- Ask your accountant before you buy, not after.
If you’re weighing up a bigger purchase, our guide to your first big equipment purchase covers cash vs borrowing.
Super for employees
If you have staff, check super is paid and up to date. From 1 July 2026, under Payday Super, the Fair Work Ombudsman explains employers must pay super at the same time as wages so it reaches the employee’s fund within 7 business days. That means super is now a pay-run task rather than a quarterly one, but it’s still worth checking at EOFY that every payment went through.
Stocktake
If you hold stock, count it on or near 30 June and record its value in the way your accountant asks. It’s a good moment to spot slow-moving stock that’s tying up cash.
Payroll
If you run payroll, your software will prompt you to finalise your Single Touch Payroll data for the year. Check the ATO’s current deadline with your payroll software or agent, and don’t leave it to the last minute.
Bad debts
If a customer is never going to pay, talk to your accountant about how to treat it before 30 June.
Feeling like EOFY has shown up a cash squeeze, or a purchase you need to plan for? You can ask a real person about your options in about a minute, with no credit check.
July: lodge, file and review
The new year has started. Now:
- Lodge your June-quarter BAS. The ATO’s due date for the April–June quarter is 28 July (lodging online or through a registered agent may give extra time; check before relying on it). See your first BAS.
- Get your records to your accountant early. July and August are calmer than October.
- Save a year-end copy of your bank statements, profit and loss and balance sheet in a folder. Future lenders often ask for exactly these.
- Set up the new year. New folders, the new year’s BAS dates in the calendar, a fresh cash flow forecast.
Your first EOFY checklist at a glance
| When | Task | Done? |
|---|---|---|
| May | Reconcile bank accounts | |
| May | Sort receipts and flag personal items | |
| May | Chase overdue invoices | |
| May | List what you owe | |
| June | Talk to your accountant about any asset purchases | |
| June | Check super payments | |
| June | Stocktake (if you hold stock) | |
| June | Finalise payroll data (if you have staff) | |
| June | Review bad debts | |
| July | Lodge June-quarter BAS | |
| July | Send records to your accountant | |
| July | Save year-end reports for future lenders | |
| July | Set up the new year |
What should you learn from your first year?
Once the numbers are in, sit down with them, ideally with your accountant, and ask:
- Which months were strongest and weakest? That’s your seasonal pattern.
- Did the tax bill surprise you? If so, set aside more each week this year.
- What did you spend the most on? Is any of it negotiable?
- Did cash ever run tight? When, and why?
- What would help the business grow next year? Equipment, stock, a hire, marketing?
Your answers are the raw material for a sensible plan, and if that plan involves borrowing, for a clear loan purpose and amount. The loan-ready checklist is a natural next step.
Common first-EOFY mistakes
- Leaving everything until July. Decisions that needed June are gone.
- Buying things you don’t need “for the tax deduction”.
- Forgetting personal transactions in the business account.
- Not saving year-end reports. You’ll want them the first time a lender asks.
- Treating the tax refund or bill as a surprise. Weekly set-asides fix this.
Myths about EOFY
“Spending before 30 June always saves money.” Only if you’d have bought it anyway. A deduction reduces tax on profit; spending $10,000 you didn’t need to spend still leaves you worse off.
“My accountant does all of this.” Your accountant does the return, but they rely on your records. The tidier your May and June, the quicker (and often cheaper) your return.
“EOFY is only about tax.” It’s also the natural moment to review how the year went, reset your cash flow forecast and plan the year ahead.
A simple rhythm for next year
Your second EOFY can be much easier than your first. The secret is doing a little each month instead of a lot in June:
- Monthly: reconcile the bank account and file receipts.
- Weekly: move tax money into a separate account.
- Quarterly: lodge the BAS and glance at profit so far.
- In March: have a quick check-in with your accountant about how the year is tracking.
With that rhythm, June becomes a short tidy-up rather than a scramble, and your records are always ready if a lender asks for them. It’s one of the simplest ways to build the steady, well-documented track record that makes borrowing easier later on.
Planning the year ahead?
Your first EOFY is a milestone: a full year of trading, on paper. It’s also the moment many owners start thinking about what comes next.
If your plans include a purchase, more stock or a hire, we’re happy to talk through what’s possible. The enquiry takes about a minute and involves no credit check. Your details go to one real person, not a string of lenders. They’ll look at your first year’s story with you and explain the options in plain English. Please fill in your turnover and trading history accurately; your first year’s numbers are exactly what we’ll be working from.
Frequently asked questions
When is the end of the financial year in Australia?
30 June. The new financial year starts on 1 July.
Should I buy equipment before 30 June to save tax?
Only if the business genuinely needs it. A deduction reduces tax on profit; it doesn't make a purchase free. The ATO says the $20,000 instant asset write-off is permanent from 1 July 2026 for eligible small businesses with aggregated turnover under $10 million, applied per asset, and the asset must be first used or installed ready for use in that income year. Check with your accountant first.
What records do I need for my first tax return?
Your income and expense records, bank statements, invoices, receipts for purchases, details of any assets bought, stock counts if you hold stock, wages and super records if you have staff, and your BAS for the year. Your accountant or registered tax agent will tell you exactly what they need.
Do I need to do a stocktake?
If your business holds trading stock, you'll generally need to know its value at the end of the year. Ask your accountant how they want it recorded.
What's the best thing to do in July?
Lodge your June-quarter BAS, get your records to your accountant early, and sit down with the year's numbers. Your first full year of figures is also the start of the track record lenders look for.