Every year without fail, the last two weeks of June become a scramble. Business owners are digging through bank statements, chasing receipts, and calling their accountant in a panic. It doesn't have to be this way - and for our clients, it isn't.
The businesses that come out of EOFY in the best shape are the ones who start preparing in April and May. Not because the paperwork is particularly complex, but because having your records in order gives you time to make strategic decisions - rather than just reacting to your tax bill.
Below is the checklist we use with our small business clients across Perth and Western Australia. Work through it methodically and you'll head into the new financial year with clean records, a clear tax picture, and no nasty surprises.
1. Get Your Records in Order
Before anything else, your financial records need to be complete and accurate. The ATO requires small businesses to keep records for at least five years, and poor record-keeping is one of the most common reasons clients face unexpected tax adjustments or audit issues.
Records Checklist
- Reconcile all bank accounts - every transaction should be categorised and match your statements
- Reconcile your credit card accounts separately
- Ensure all invoices issued are recorded and matched against payments received
- Confirm all supplier invoices and bills are entered and accounted for
- Resolve any unreconciled transactions or suspense account entries
- Scan and save any paper receipts still sitting in a drawer or wallet
- Reconcile petty cash if you operate a float
- Back up your accounting software data (Xero, MYOB, QuickBooks)
Xero tip: Run the Account Transactions report filtered by "Unreconciled" to catch anything that's slipped through. It takes five minutes and regularly uncovers either missing deductions or duplicate entries that inflate your income.
2. Review Your Deductions - Before It's Too Late to Act
This is the most valuable part of EOFY preparation - and the part most business owners do too late. Reviewing your deductions in June is largely reactive. Reviewing them in April or May gives you time to actually do something about it.
Deductions Checklist
- Business vehicle expenses - have you kept a logbook? If not, consider starting one now for next year. For this year, ensure all vehicle costs (fuel, rego, insurance, servicing) are recorded
- Home office expenses - if you work from home, you can claim a portion of electricity, internet, phone, and occupancy costs. The ATO's revised fixed rate method is 67 cents per hour - make sure you have records of hours worked
- Prepay deductible expenses - small businesses can prepay up to 12 months of deductible expenses (insurance, rent, subscriptions, interest) before 30 June and claim the full deduction this financial year
- Write off bad debts - if you have invoices that are genuinely uncollectable, write them off in Xero before 30 June. You can only claim the deduction in the year the debt is written off
- Instant Asset Write-Off - if you're a Small Business Entity (turnover under $10M), you may be able to immediately deduct the full cost of eligible depreciating assets. The current threshold is $20,000 per asset - review what equipment, tools, or technology you've purchased or plan to purchase before 30 June
- Professional development and training - courses, conferences, and memberships directly related to your business income are deductible
- Accounting and legal fees - 100% deductible
- Business insurance premiums - if paid annually, confirm the amount and period covered
- Software subscriptions - Xero, Microsoft 365, industry-specific tools - all deductible if used for business
Don't wait until 30 June: If you're thinking about purchasing equipment or prepaying expenses to bring forward deductions, have the conversation with your accountant in May. Rushed decisions in the last week of June often result in buying things the business doesn't actually need.
3. Superannuation - Get It Right Before 30 June
Superannuation is one of the most common EOFY traps for small business owners, and the rules are unforgiving. Super contributions are only deductible in the year they are received by the super fund - not the year they leave your bank account.
Super Checklist
- Confirm all employee super contributions for Q4 (April–June) are paid and received by funds before 30 June - the clearing house can take 3–5 business days to process, so aim to submit by 20–23 June at the latest
- If you're a business owner paying yourself super, confirm your personal contributions are in before 30 June if you want the deduction this year
- Check you're paying at the correct Super Guarantee rate - it is currently 11.5% and increases to 12% from 1 July 2025
- Confirm all employees have a valid super fund nominated (or are defaulting to your stapled fund via the ATO)
- Reconcile superannuation payable in your accounts - the liability should match what you've actually contributed
Missed a super payment? The Super Guarantee Charge (SGC) is not tax deductible and attracts significant interest. If you've fallen behind, speak to your accountant immediately - there are processes to manage this before it escalates.
4. Payroll - End of Year Obligations
If you have employees, EOFY brings a number of specific payroll obligations. Most of these need to be completed by 14 July, so get ahead of them now.
Payroll Checklist
- Reconcile total gross wages paid against your payroll software records
- Confirm all PAYG withholding has been remitted to the ATO throughout the year
- Finalise your Single Touch Payroll (STP) data - you must submit your STP finalisation by 14 July 2026. This generates payment summaries for your employees directly in their myGov accounts
- Check that employee leave balances are accurate and recorded correctly
- Confirm any employee termination payments have been processed and taxed correctly (these have specific withholding rules)
- Review salary and wage rates to ensure compliance with any Award or Enterprise Agreement changes effective 1 July
- If you pay Fringe Benefits Tax (FBT), your FBT return for the year ended 31 March should already be lodged or in progress
5. Review Your Business Structure
EOFY is the right time to step back and ask whether your current business structure is still the most tax-effective one. This is a conversation worth having with your accountant well before June - because structural changes generally can't be backdated.
- If you're a sole trader earning significant profit, have you explored whether a company or trust structure would reduce your tax burden?
- If you operate through a company, have you reviewed the optimal mix of salary versus dividends for the year?
- If you have a family trust, have you considered income splitting to minimise overall family tax liability?
- Are you making the most of the Small Business Tax Offset (if applicable to your structure)?
- Have there been any changes to your personal circumstances (marriage, dependants, property purchases) that affect your overall tax position?
6. BAS and GST - Tie Everything Up
If you're registered for GST, your Q3 BAS (January–March) should already be lodged. The Q4 BAS (April–June) will be due in late July, but getting your records clean now makes the lodgement straightforward.
GST & BAS Checklist
- Confirm all invoices issued include GST where applicable and are coded correctly in your accounting software
- Check that you have valid tax invoices for all GST credits you're claiming - the ATO requires a tax invoice for purchases over $82.50 (inc. GST)
- Reconcile your GST payable and receivable accounts against your BAS lodgements for the year
- If your turnover has crossed $75,000 this year and you're not yet registered for GST, you must register immediately and contact your accountant
- Review any transactions with overseas suppliers - imported services may attract GST under the reverse charge rules
7. Plan for Your Tax Bill
One of the biggest mistakes small business owners make is treating their tax return as a surprise event. By the time you lodge and get your assessment, the liability has already crystallised - you just didn't know the number.
A simple way to avoid cash flow shock: once you have a reasonable view of your annual profit (even a rough one), ask your accountant for a tax estimate. You can then set aside funds progressively rather than finding a large sum at once.
- Get a pre-30 June tax estimate from your accountant based on your year-to-date figures
- Set aside the estimated tax liability in a separate account if you don't already do this
- If you're paying PAYG instalments, review whether the instalment amount is appropriate - you can vary it if your income has changed significantly
- Discuss timing of income where possible - in some circumstances, deferring invoicing a few days into July can shift taxable income to the next year
Tax planning is not tax avoidance. Every strategy listed in this article is entirely legal and encouraged by the ATO. Structuring your affairs tax-effectively is exactly what the legislation is designed to allow. The key is doing it proactively, with proper advice.
Key Dates to Have on Your Calendar
- 20–23 June - Final date to submit super contributions through a clearing house and have them received by 30 June
- 30 June - End of financial year - all deductions must be incurred or prepaid by this date
- 14 July - STP finalisation due for employers
- 28 July - Q4 BAS due (April–June) for quarterly lodgers
- 31 October - Deadline to lodge your own individual or company tax return if you are not using a registered tax agent
- 15 May 2027 - Extended lodgement deadline if you engage a registered tax agent by 31 October 2026
One Final Thought
The difference between small business owners who dread EOFY and those who take it in their stride is almost always preparation. The checklist above isn't complicated - but most people don't work through it until it's too late to act on it.
If you'd like to work through this with a Chartered Accountant who knows small business inside out, we'd welcome the conversation. At Reacco, we work with business owners across Perth and WA to make EOFY a non-event - and to ensure you're not leaving money on the table year after year.
Book a free consultation today - no obligation, no jargon, just a straight conversation about your business and what we can do for you before 30 June.