With 30 June fast approaching, it is essential to take a proactive approach to year-end planning. The end of the financial year should be viewed not merely as a compliance deadline, but as a strategic opportunity to optimise tax outcomes, strengthen cash flow, and enhance overall business performance.
Key EOFY Actions for Business Owners
- Ensure financial records are accurate and up to date
All bank accounts, credit facilities, payroll records, and general ledgers should be fully reconciled prior to year-end to ensure accuracy and completeness. - Review receivables and address bad debts
Assess outstanding receivables and formally write off any unrecoverable debts before 30 June to avoid taxation on income that will not be realised. - Maximise legitimate deductions
Ensure all deductible expenses incurred in generating assessable income are identified and claimed, supported by appropriate documentation and a clear business purpose. - Consider prepayment of eligible expenses
Where commercially appropriate, prepay up to 12 months of qualifying expenses (such as insurance and subscriptions) to bring forward tax deductions. - Utilise instant asset write-off provisions
Eligible businesses with aggregated turnover below $10 million may access immediate deductions for qualifying assets costing less than $20,000 each. - Finalise payroll, bonuses, and director fees
Ensure payments are made, or binding obligations established, prior to year-end to secure deductibility. - Manage superannuation obligations proactively
Superannuation contributions are only deductible when received by the fund. Early payment is recommended to avoid missing eligibility for deductions due to processing delays. - Conduct stocktake and review inventory valuation
Undertake a comprehensive stocktake and appropriately write down obsolete or impaired inventory to reflect its net realisable value. - Review BAS, GST, and compliance obligations
Validate GST reporting and payroll compliance to mitigate the risk of penalties or regulatory scrutiny. - Prepare for upcoming regulatory changes (FY27 focus)
Businesses should consider the implications of:- Payday Super commencing from 1 July
- Super Guarantee (SG) rate 12%
- Updates to clearing house arrangements and Single Touch Payroll (STP) reporting
- Maintain clear separation of business and personal expenses
Only expenses incurred for business purposes should be claimed, with appropriate records maintained to substantiate deductions. - Leverage EOFY as a strategic review point
Assess cash flow, profitability, and cost structures to support informed decision-making and improved performance in FY27.
Should you require further information on tax tips for small business owners, please feel free to contact Peter Quinn by submitting an enquiry or by calling us on +61 2 9580 9166.
The information in this document does not take into account your personal objectives, financial situation, or needs, so you should consider its appropriateness having regard to these factors before acting on it. It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser