The end of financial year (EOFY) is one of the most important planning windows for Australian small businesses, offering a focused opportunity to review deductions, superannuation contributions, and record-keeping before 30 June. Working with a qualified accountant in the months leading up to EOFY can help you approach the tax year close in an organised, informed way.

EOFY Tax Planning Tips for Small Businesses – 2026 AU Guide

The lead-up to 30 June is a pivotal time for Australian small business owners. Whether you operate as a sole trader, partnership, company, or trust, the weeks before the financial year ends give you a structured opportunity to review your position, tidy your records, and make informed decisions. This guide walks through the key areas worth discussing with your accountant before the clock runs out.

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1. Start Early: Why Timing Matters Before 30 June

One of the most common mistakes small business owners make is leaving EOFY planning to the final days of June. By that point, many decisions, particularly those around superannuation, asset purchases, and prepayments, need to have already been actioned to count in the current financial year.

Ideally, you should be reviewing your position from April onwards. This gives you time to model different scenarios, gather supporting documentation, and avoid rushed decisions that could create compliance issues later. Talk to your accountant or registered tax agent early, so you are making considered choices rather than reactive ones.

If you do not yet have a tax professional, now is a good time to find one. The Tax Practitioners Board public register lets you verify that any agent or accountant you engage is properly registered. You can also browse best accountants in Sydney to compare independently reviewed practitioners in your area.

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2. Review Your Deductible Business Expenses

A fundamental part of EOFY planning is reviewing what legitimate business deductions you may be able to claim. The Australian Taxation Office provides detailed guidance on what constitutes an allowable deduction, with the core principle being that expenses must be incurred in the course of earning your assessable income.

Common deductible expenses for small businesses include:

- Business-related travel and vehicle use - Home office expenses (where a portion of your home is used for work) - Professional development, training, and subscriptions relevant to your business - Marketing and advertising costs - Professional fees, including accounting and legal fees - Insurance premiums for business purposes - Repairs and maintenance on business assets

The ATO distinguishes between expenses that are immediately deductible in the year they are incurred and capital expenditure that must be depreciated over time. Understanding this distinction is important for accurately calculating your taxable income. Refer to the ATO's guidance on business deductions for the current rules, or confirm the specifics with your accountant.

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3. Superannuation Contributions and the Cut-off Date

Superannuation is one of the most significant and time-sensitive EOFY considerations for small business owners. If you are a sole trader or the director of your own company, making concessional (before-tax) contributions to superannuation before 30 June can form part of your tax strategy for the year.

Crucially, contributions must be received by the fund before 30 June to count in that financial year, not merely sent. Processing times for super funds mean you should aim to action any contributions well before the end of June. The ATO's superannuation page outlines contribution caps and eligibility rules that apply, and these can change year to year, so always verify the current figures directly from the source.

If you employ staff, ensure your superannuation guarantee obligations are met on time. Late payments are not tax-deductible and may attract the Superannuation Guarantee Charge. Staying across your obligations as an employer is essential, and your accountant can help you confirm that everything is on track.

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4. Instant Asset Write-Off and Depreciation Rules

The instant asset write-off has been a widely discussed measure for Australian small businesses in recent years, allowing eligible businesses to immediately deduct the cost of certain depreciable assets rather than spreading deductions across the asset's useful life. Rules around this scheme, including eligibility thresholds and the definition of a "small business entity," have evolved over successive budgets.

Because the thresholds and conditions can change, it is important to check the current rules directly with the ATO or through Treasury's tax policy announcements rather than relying on information from previous years. Your accountant can help you assess whether a planned asset purchase qualifies, and whether making the purchase before 30 June versus after the new financial year begins is more advantageous for your specific situation.

Keep in mind that purchasing an asset solely for a tax deduction, without genuine business purpose, is not sound planning and may attract scrutiny.

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5. Prepayments, Invoicing, and Income Timing

For small businesses, there is some flexibility around the timing of income and expenses that is worth reviewing with your accountant. If you are likely to be in a lower income bracket next year, for example, deferring the raising of certain invoices until after 1 July may be worth considering. Conversely, bringing forward deductible expenses into the current year may be appropriate in other circumstances.

Prepayments, where you pay in advance for services or expenses that will be incurred in the following year, can sometimes be deducted in the year of payment, depending on the nature of the expense and your business structure. The rules here are specific and depend on whether you operate under the cash or accruals basis of accounting.

Income timing decisions need to be made carefully to ensure they are commercially genuine and compliant. The ATO has general anti-avoidance rules and specific provisions that prevent artificial income deferral. Always take professional advice before making significant timing-related decisions.

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6. Record-Keeping and BAS Reconciliation

Good record-keeping is not just a compliance obligation; it is the foundation of accurate tax planning. Before EOFY, it is worth reconciling your accounts, making sure your business activity statement (BAS) lodgements are current, and ensuring that all receipts, invoices, and bank statements are accounted for.

The ATO expects businesses to keep records for a minimum period, and those records need to be in a form that accurately represents your income and expenses. Digital record-keeping tools and accounting software can simplify this significantly, but they still require consistent maintenance throughout the year.

If your bookkeeping has fallen behind, engaging a registered BAS agent or bookkeeper before EOFY can help you get organised quickly. Check our cost guide for an overview of what professional bookkeeping and accounting services typically involve, and review our methodology to understand how we evaluate and rank practitioners.

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7. Structuring, Trust Distributions, and Company Considerations

For businesses operating through a company or trust structure, EOFY brings additional considerations. Trust distributions, for instance, must typically be resolved and documented before 30 June to be effective for that income year. If your trust deed has specific requirements, failing to meet these in time can have significant consequences.

Company tax obligations, including Division 7A loan rules and franking account management, are areas where specialist advice is particularly valuable. The ASIC website and the Income Tax Assessment Act 1997 via AustLII are useful starting points for understanding your obligations, though the technical nature of these areas means professional advice is strongly recommended rather than self-directed action.

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Frequently Asked Questions

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Sources

- Australian Taxation Office: https://www.ato.gov.au/ - Tax Practitioners Board public register: https://www.tpb.gov.au/public-register - Treasury – tax policy: https://treasury.gov.au/ - ASIC – company and SMSF rules: https://asic.gov.au/ - Income Tax Assessment Act 1997 (AustLII): https://www.austlii.edu.au/cgi-bin/viewdb/au/legis/cth/consol_act/itaa1997240/

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Information in this article is general only and not tax or financial advice. Verify the details with the linked sources or an appropriately qualified Australian professional before relying on them.

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