Published: August 2025
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.
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.
Start preparations in May 2026 to avoid rushes. Key milestones include:
A visual timeline can help: Imagine a chart showing pre-EOFY tasks building up to 30 June, followed by lodgement periods.
Use this step-by-step checklist to stay on track:
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.
Maximise savings with these ATO-approved deductions:
Always keep records for seven years to substantiate claims during audits.
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.
For self-lodged individual and trust returns, it's 31 October 2026. Companies vary, often 28 February 2027, with extensions via agents.
The rate is 12% of ordinary time earnings, paid quarterly by 28 October, 28 January, 28 April, and 28 July.
Eligibility depends on aggregated turnover under $10 million. For 2025–26, check ATO for thresholds, as the $20,000 limit applied to 2024–25.
Receipts, invoices, and logs for expenses like travel or home office use, retained for seven years.
Through STP by 14 July 2026, ensuring all wages, super, and withholdings are reported.
Penalties start at $313 per 28 days late, plus interest on unpaid amounts.
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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