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End of Financial Year Checklist for Sydney Businesses 2026

Timeline graphic showing EOFY 2026 preparation steps and deadlines for small businesses in Australia.

Published: August 2025

Introduction

As the 2025–26 financial year draws to a close on 30 June 2026, Sydney small and medium business owners face a critical period for wrapping up accounts, ensuring compliance, and optimising tax outcomes. End of Financial Year (EOFY) preparation isn't just about meeting Australian Taxation Office (ATO) requirements - it's an opportunity to review performance, claim deductions, and set strategies for growth.

For instance, a local cafe might use this time to reconcile inventory and claim depreciation on kitchen equipment, potentially reducing taxable income significantly.

This guide, tailored for Sydney-based SMBs, draws on ATO guidelines to provide practical steps, checklists, and insights. With penalties for late lodgements starting at $313 and rising, getting organised early can save time and money. Whether you're a sole trader in retail or a partnership in services, these tips will help you navigate EOFY smoothly.

What is End of Financial Year?

In Australia, the financial year runs from 1 July to 30 June, aligning with tax reporting cycles. EOFY marks the deadline for finalising books, calculating profits or losses, and preparing tax returns. For small businesses, this involves assessing income, expenses, and assets to determine tax liabilities or refunds. According to ATO data, over 3 million small businesses lodge annually, with common oversights including unreported super contributions or missed deductions—framing your approach around accurate record-keeping can turn EOFY from a chore into a strategic review.

EOFY Preparation Timeline

Start preparations in May 2026 to avoid rushes. Key milestones include:

  • May 2026: Review financial records and conduct stocktakes.
  • June 2026: Finalise payroll, pay outstanding super, and reconcile accounts.
  • July 2026: Lodge tax returns and BAS, with deadlines extending into October for individuals.

A visual timeline can help: Imagine a chart showing pre-EOFY tasks building up to 30 June, followed by lodgement periods.

Essential EOFY Checklist for Small Businesses

Use this step-by-step checklist to stay on track:

  • Reconcile Bank Accounts: Match transactions in your accounting software to bank statements. Example: A Sydney tradesperson might spot unclaimed fuel expenses from job sites.
  • Conduct Stocktake: Value inventory at cost or market value. For retailers, this ensures accurate cost of goods sold figures.
  • Review Debtors and Creditors: Chase overdue invoices and pay bills to claim deductions.
  • Process Payroll Finalisation: Via Single Touch Payroll (STP), declare final wages and super. Ensure all employees receive payment summaries by 14 July 2026.
  • Pay Super Guarantee Contributions: Due by 28 July 2026 for the April–June quarter at 12% of ordinary time earnings, as per ATO rates effective from 1 July 2025.
  • Claim Deductions: Gather receipts for work-related expenses like marketing or travel. Note: Home office claims require diary logs for running costs.
  • Assess Asset Purchases: If eligible under simpler depreciation rules, write off low-cost assets; check ATO for current thresholds, which were $20,000 for 2024–25 but may revert.
  • File Taxable Payments Annual Report (TPAR): Due 28 August 2026 for applicable industries like construction.
  • Prepare Financial Statements: Generate profit and loss, balance sheet, and cash flow reports.

Tips for Completing Your Tax Return

Lodging your tax return accurately is key. Sole traders and partnerships typically file by 31 October 2026 if self-lodging, while companies may have earlier deadlines like 28 February 2027 - using a registered agent extends these. Start by calculating taxable income (revenue minus expenses), then apply deductions.

For example, a small IT firm in Sydney could deduct software subscriptions and training costs. Use myGov or accounting software for online submission to receive faster refunds.

Common Tax Deductions for Sydney Businesses

Maximise savings with these ATO-approved deductions:

  • Vehicle Expenses: Logbook method for business travel, e.g., a delivery service claiming 85 cents per km.
  • Home Office: Proportion of utilities based on floor area.
  • Marketing and Advertising: Costs for website updates or social media campaigns.
  • Professional Fees: Bookkeeping or legal advice.
  • Depreciation: For assets over the instant write-off threshold, use diminishing value method.

Always keep records for seven years to substantiate claims during audits.

Superannuation and Payroll Obligations

Ensure super payments are up to date at 12% for 2025–26. Late payments attract non-deductible charges. For payroll, finalise STP by 14 July 2026 to report to the ATO and employees. Sydney businesses with wages over $1.2 million in NSW must also handle payroll tax reconciliations.

Key EOFY Dates for 2025–26

  • 30 June 2026: Financial year ends.
  • 14 July 2026: PAYG summaries to employees.
  • 28 July 2026: Q4 BAS and super due.
  • 31 October 2026: Individual tax returns due (self-lodged).
  • 28 August 2026: TPAR due.

Frequently Asked Questions

What is the deadline for lodging tax returns at EOFY 2026?

For self-lodged individual and trust returns, it's 31 October 2026. Companies vary, often 28 February 2027, with extensions via agents.

How much super do I need to pay for employees in 2025–26?

The rate is 12% of ordinary time earnings, paid quarterly by 28 October, 28 January, 28 April, and 28 July.

Can small businesses claim instant asset write-offs in 2026?

Eligibility depends on aggregated turnover under $10 million. For 2025–26, check ATO for thresholds, as the $20,000 limit applied to 2024–25.

What records do I need for EOFY deductions?

Receipts, invoices, and logs for expenses like travel or home office use, retained for seven years.

When should I finalise payroll for EOFY?

Through STP by 14 July 2026, ensuring all wages, super, and withholdings are reported.

What happens if I miss an EOFY deadline?

Penalties start at $313 per 28 days late, plus interest on unpaid amounts.

Sydney Bookkeeper: Your EOFY Compliance Partner

For Sydney small and medium businesses seeking expert help with EOFY preparations, Sydney Bookkeeper (www.sydneybookkeeper.com.au) offers comprehensive services. We handle everything from reconciliations and STP finalisations to deduction maximisation and tax lodgements. Our team provides cloud-based accounting, custom reports, and deadline alerts to keep you stress-free.

Reach out to optimise your finances today.

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