Published: August 2025
The end of financial year represents both Australia's busiest compliance period and your greatest opportunity for tax optimisation. If you employ staff, you need to complete your end of financial year Single Touch Payroll (STP) finalisation declaration by 14 July 2026, alongside multiple other critical deadlines that can make or break your business's financial position.
Australian small businesses collectively claim over $47 billion in tax deductions annually, yet many miss legitimate opportunities due to poor EOFY preparation. The instant asset write-off provisions for the 2025-26 income year provide significant tax savings potential for eligible businesses.
This comprehensive checklist ensures your business maximises every available deduction whilst meeting all compliance obligations before the critical 30 June 2026 deadline.
Instant Asset Write-Off Strategy: Under current instant asset write-off provisions, eligible businesses can immediately deduct the full cost of eligible assets if they are first used or installed by the end of June 2026. Strategic timing maximises tax benefits.
Eligible Assets for Immediate Write-Off:
Action Items:
Prepaid Expenses
Repairs and Maintenance
Professional Services
Physical Inventory Requirements: Businesses holding trading stock must conduct accurate stocktakes to determine cost of goods sold and closing inventory values. This directly impacts taxable income calculations.
Stocktake Best Practices:
Digital Documentation:
Quarter 4 Deadline: 28 July 2026: Superannuation contributions must be received by superannuation funds, not just paid, to claim tax deductions in the current financial year.
Compliance Checklist:
Single Touch Payroll (STP) Obligations: This is so that the tax and super information on your employee's income statement can be pre-filled when they lodge their tax return.
STP Finalisation Steps:
Asset Installation Deadline: All instant asset write-off claims require assets to be "installed ready for use" by 30 June 2026. Delivery alone is insufficient - assets must be operational or ready for business use.
Income and Expense Cut-Off
Banking and Cash Management
Home Office Expenses
Vehicle Expenses
Training and Development
14 July 2026: STP Finalisation: Complete Single Touch Payroll finalisation to enable employee income statement pre-filling. Late submission prevents employees accessing pre-filled tax returns.
21 July 2026: June BAS: Lodge monthly Business Activity Statement for June, including final GST and PAYG withholding obligations for the financial year.
28 July 2026: Multiple Critical Deadlines
Management Reporting
Audit and Review Preparation
Company Tax Returns: Companies face 31 October 2026 deadline unless engaging registered tax agents (extended to 15 May 2027). Consider timing implications for:
Trust and Partnership Returns
Individual Business Owners: Self-preparing individuals face 31 October 2026 deadline, whilst tax agent clients receive extensions. Consider professional engagement for:
Income Timing Strategies
Business Structure Optimisation
Financial Health Assessment
Operational Efficiency Review
2026-27 Financial Year Objectives
Tax Planning for 2026-27
Digital Record Management: Modern businesses require sophisticated record-keeping systems that support audit requirements whilst providing operational insights. Scale Suite recommends cloud-based solutions with automated backup capabilities.
Critical Records Checklist:
Retention Requirements: Australian businesses must retain tax records for five years from lodgement date or transaction completion. Consider longer retention for:
Professional Standards Compliance: Maintain documentation standards that exceed minimum requirements, facilitating smooth audit processes and demonstrating professional business management.
Segregation of Duties: Implement internal controls that separate authorisation, recording, and custody responsibilities. This reduces error risks whilst providing audit trail integrity.
The instant asset write-off provisions for the 2025-26 income year allow eligible businesses to immediately deduct qualifying asset costs rather than depreciation over several years. Specific thresholds and eligibility criteria should be confirmed with current ATO guidance as these provisions are subject to legislative changes.
Single Touch Payroll finalisation must be completed by 14 July 2026. This enables your employees' income statements to be pre-filled when they lodge their tax returns. Late finalisation prevents employees from accessing this service and may result in ATO penalties.
Yes, Australian businesses can claim legitimate home office expenses using either the actual cost method (calculating precise expenses) or the fixed rate method. You must maintain detailed records of business use and maintain a dedicated office space for actual cost claims. Current rates should be verified with ATO guidance.
Australian tax law requires businesses to retain all tax-related records for five years. Essential records include receipts, invoices, bank statements, payroll documentation, asset registers, insurance policies, and contracts. Digital storage is acceptable provided records remain accessible and legible.
Superannuation guarantee is calculated based on the applicable rate for the 2025-26 financial year applied to ordinary time earnings for eligible employees. Contributions must be received by superannuation funds by 28 July 2026 to claim current year tax deductions. Calculate based on gross salary including allowances but excluding genuine reimbursements.
Assets purchased after 30 June 2026 cannot claim instant asset write-off benefits for the 2025-26 financial year. They may qualify for standard depreciation deductions or other available instant asset write-off provisions for the following financial year. Timing is critical for maximising tax benefits.
While not mandatory, tax agents provide significant benefits including extended lodgement deadlines (until 15 May 2027 for companies), professional expertise in deduction optimisation, and compliance assurance. Self-preparing businesses face 31 October 2026 deadline with limited extension opportunities.
Effective stocktakes require comprehensive physical counting, accurate record-keeping, and appropriate valuation methods. Count all inventory items, identify damaged or obsolete stock, apply consistent valuation principles (cost, market value, or replacement cost), and maintain detailed documentation supporting all adjustments.
Critical BAS deadlines include 21 July 2026 for June monthly BAS and 28 July 2026 for Quarter 4 quarterly BAS. These deadlines coincide with FBT return obligations and superannuation guarantee contribution deadlines, creating significant cash flow planning requirements.
Expenses must be incurred by 30 June 2026 to claim deductions in the 2025-26 financial year. While you can pay for expenses after 30 June (if properly incurred before), you cannot backdate transactions or create artificial arrangements. The ATO closely scrutinises year-end transactions for legitimate business purposes.
Scale Suite can help team up with you for year-end compliance and work alongside your tax accountant, Our systematic approach ensures nothing falls through the cracks.
Scale Suite's holistic approach extends beyond EOFY compliance to strategic business advisory services. We provide performance analysis, forward planning guidance, and growth strategy development that positions your business for sustained success.
Scale Suite delivers finance and human resource services to support the growth of Australian businesses. Our Sydney-based team creates custom packages tailored to your needs, seamlessly integrating with your existing teams. From comprehensive finance services and strategic business support to recruitment and HR services, we reduce costs, save time, and help you scale confidently.
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