Quick answer
Before 30 June: write off bad debts and obsolete stock, count your stock, decide on asset purchases, check that super reaches employees' funds in time under Payday Super, and sort trust and director loan paperwork with your accountant. After 30 June: finalise Single Touch Payroll by 14 July, then plan cash for the tax bill and the first BAS of the new year.
Key points
- Bad debts and obsolete assets generally need to be written off before 30 June to claim the deduction in that year
- Payday Super began on 1 July 2026: super generally has to reach the fund within 7 business days of payday, and the ATO's small business clearing house has closed
- Single Touch Payroll finalisation is due by 14 July after year end
- The tax bill arrives after the year ends, so the cash plan matters as much as the paperwork
- Ask your accountant about the instant asset write-off threshold, which the ATO says became permanent from 1 July 2026, before you buy anything for the tax deduction alone
It is late October, which is exactly why this is the right time to read an end of financial year checklist. Nobody reads one in June. By then the stocktake is a scramble, the accountant is booked solid and the tax bill is a number you can no longer influence.
The next 30 June is eight months away. This checklist is built so you can work through it in stages, with the cash consequences next to each task. It also reflects the biggest change in years for employers: Payday Super.
What is the end of financial year, and why does cash matter more than paperwork?
The tax year for the typical Australian business starts on 1 July and finishes on 30 June. Income, deductions, GST accounting, superannuation and payroll reporting all hang off that boundary.
The paperwork is the visible part. The part that sinks businesses is the cash arriving in the months after: a tax bill on last year’s profit, PAYG instalments that reset, a BAS due while you’re still paying for the year-end push and super obligations that now fall on every payday. Our guide to tax-time cash flow covers the funding side, and the key dates in the tax calendar keeps the deadlines in one place.
What should you do in the months before 30 June?
Start in March or April, not June. Here’s the order that works.
Records and reporting
- Reconcile your accounts. Bank, credit cards, loans and clearing accounts all match the ledger. A clean ledger makes everything below faster and cheaper.
- Pull a year-to-date profit and loss plus a balance sheet. Our guides on reading your profit and loss and your balance sheet help you spot problems early.
- Review debtors and creditors. Chase overdue invoices, and decide which debts are really bad. See slow-paying customers.
- Gather asset records. Purchases, sales and improvements matter for depreciation and capital gains.
- Digitise and back up. Paper receipts fade and laptops fail.
Deductions and write-offs
- Write off genuine bad debts and obsolete assets before 30 June. Business.gov.au says to do this before year end to claim the deduction. The decision should be documented, not casual.
- Do a stocktake as close to year end as practical. Stock on hand affects your taxable profit. Slow or obsolete stock can sometimes be valued lower; take advice before you do.
- Check prepayments. Some small businesses can deduct certain bills paid in advance in the year the money leaves. Conditions apply, so ask your accountant.
- Review assets. Decide whether to buy equipment now or in July, which we cover in the next section.
People and payroll
- Check super is being paid correctly and on time, as described below.
- Review contractor payments. Industries that report taxable payments need records for the annual report, which has its own due date set by the ATO.
- Tidy employee details. Wrong tax file numbers, super fund details or addresses cause avoidable headaches at finalisation.
Entity housekeeping
- Trusts. Distribution decisions typically need to be made by 30 June. Your accountant will know the trust deed’s requirements.
- Companies. If shareholders or directors have loans to or from the company, the accountant will want to deal with minimum repayments and documentation before year end.
- Structure. Use the annual review to ask whether your structure still suits the business. Our guide on company versus sole trader explains the lender angle.
Should you buy equipment before 30 June?
This is the classic year-end temptation, and a classic mistake.
The $20,000 instant asset write-off lets smaller businesses (the ATO sets the turnover cut-off at under $10m) deduct an eligible asset’s cost at once, provided the asset is up and running for the business in that year. The ATO’s most recent page treats the limit as ongoing from 1 July 2026. Because enactment details can shift, read the live ATO page and get your accountant’s view before you buy.
Keep three things in mind:
- A deduction is not a refund. If your tax rate is around a quarter to a third on the margin, a $20k purchase saves a few thousand dollars of tax and costs the rest in cash.
- Installed ready for use matters. Equipment on order, or delivered but not installed by 30 June, may not count in that year.
- Financing doesn’t change the deduction timing, but it does change the cash. See instant asset write-off and equipment finance and how equipment finance works.
Purchase what the business genuinely needs, at the time it needs it. Buying for the deduction alone is how businesses end up with a depreciating asset and a tax bill.
What did Payday Super change?
For pay on or after 1 July 2026, the ATO’s rule is that contributions should reach the employee’s fund inside seven business days after payday. The old pattern of paying quarterly and catching up near the deadline no longer works for pay made on or after that date.
What that means in practice:
- Super now travels with each pay run. It’s now part of the weekly or fortnightly cash plan rather than a quarterly lump.
- Processing time counts. What counts is arrival at the fund, and a bounced payment doesn’t earn you extra time. New employees’ first contribution has a longer window, 20 business days.
- The ATO’s free clearing house for small employers shut on 1 July 2026, so anyone who relied on it needs a payroll package or a commercial clearing house instead.
- Reporting happens through STP, as the ATO describes.
- Pay up to 30 June 2026 followed the old quarterly rules, which is behind us.
If super has slipped behind, it’s worth fixing straight away. Our guide on super obligations and cash flow covers the consequences and how to catch up, and the paying superannuation funding page outlines finance options.
What happens after 30 June?
The first weeks of July are about finalisation and cash.
- Finalise Single Touch Payroll by 14 July. Employers finalise payroll data for the year so employees’ income statements are ready. If you use a payroll provider, ask for confirmation.
- Lodge the activity statements on schedule. The June quarter BAS has its own due date; check the ATO calendar.
- Reconcile and close the year with your accountant, then settle the tax position.
- Reset PAYG instalments. The ATO’s variation can be adjusted if your income has changed; ask your accountant.
- Plan the cash for the tax bill and the first quarter of the new year. If the amount is bigger than expected, talk to the ATO before the due date. See ATO payment plans explained.
- Set next year’s goals. Review your plan, pricing, costs and insurance.
If the position is tight, a business loan to cover tax is sometimes cheaper and calmer than letting a debt run. We lay out when that makes sense in paying tax debt with a business loan.
A short enquiry will tell you what is realistic for your situation.
A worked example of the cash timeline
Imagine a trades business that turns over $1.6m and makes a taxable profit of $210k. Its accountant estimates the tax at $55k after the year ends.
| When | What lands |
|---|---|
| June | Stocktake, a $14k equipment purchase, year-end bonuses |
| 1 July | Payday Super: super is now paid with every pay run |
| By 14 July | STP finalised |
| July to August | Accountant finalises the position; tax estimate firms up |
| Later | $55k tax bill, new PAYG instalments, BAS for the quarter |
The owner’s cash is lowest in the weeks right after year end, because June spending has gone out, receipts from June work haven’t all arrived, and the tax estimate is looming. A buffer built across the year is the cheapest answer. A short-term facility arranged calmly in May costs less in stress than one arranged under pressure in August. See how to set up a cash buffer.
A realistic timeline from now
- November to February: keep the ledger reconciled monthly, set up the tax savings account and review pricing.
- March to April: run a draft profit and loss, review debtors, plan asset purchases.
- May: book your accountant, check super is current, decide on write-offs.
- June: stocktake, bad debt write-offs, final asset decisions, trust paperwork.
- July: finalise STP, lodge BAS, forecast the tax bill and arrange funding if needed.
When the tax bill is bigger than the cash
It happens to sound businesses. A strong year, a large contract that paid late, a purchase that ate the buffer. The answer is to plan early and speak up early: to your accountant, to the ATO and to a lender if the numbers say you’ll need one.
Banks can be very good at this and are often the lowest-cost route, so if yours is willing, begin there. If the answer is no, or the timeline is too short for a bank’s process, we’re worth a call.
The form takes roughly a minute. Asking leaves your credit file untouched, and your details stay with us rather than being fired off to a list of lenders. Someone on our team reads your situation, then rings to talk about what might work. Put in the real figures for the amount, the due date and any ATO arrangement, and the first option we raise is far more likely to be the right one.
Frequently asked questions
When does the Australian financial year end?
The financial year for most businesses runs from 1 July to 30 June. Tax deadlines, deductions, super and payroll reporting are based on that period. Some businesses use a substituted accounting period with ATO approval, which is the exception, so check with your accountant if you think this applies to you.
What do I need to do before 30 June?
Prepare a profit and loss, review debtors and creditors, write off genuine bad debts and obsolete assets, do a stocktake as close to year end as practical, check asset purchases and records, and make sure super and payroll obligations are on track. Business.gov.au publishes a checklist that covers these tasks.
How has Payday Super changed end of year super?
From 1 July 2026, the ATO says super generally has to be received by the employee's fund within 7 business days after payday, instead of the old quarterly pattern. The Small Business Superannuation Clearing House closed on the same date. Pay super with each pay run and allow for processing time.
When do I have to finalise Single Touch Payroll?
Employers using STP finalise the year's payroll data by 14 July after year end, so employees' income statements are available to them and the ATO for tax time. If you're still outstanding, finalise it as soon as possible and ask your payroll provider or agent for help.
Should I buy equipment before 30 June to cut my tax?
Only if you need it. A deduction returns a portion of the spend as reduced tax; it doesn't make the purchase free. Check the current instant asset write-off threshold and eligibility with your accountant, and make sure the equipment is installed ready for use by 30 June to claim in that year.
What if I can't afford my tax bill?
Contact the ATO before the due date and ask about a payment plan, rather than waiting for a notice. Lodging on time matters, because the ATO is generally more flexible with businesses that are in contact. Our guides on ATO payment plans and tax debt set out the options.