As the end of tax year Australia approaches, now is the time to review your finances, maximise deductions and prepare for the financial year ending on 30 June. Good tax tips can help you improve cashflow, avoid last-minute surprises and start the new financial year with confidence.

With ongoing cost pressures, tighter ATO compliance activity and changing Federal Budget measures, proactive EOFY planning is more important than ever for both businesses and individuals.

Below we will cover practical End Of Financial Year Tax Tips for 2025/26, whether you are a business owner or an individual.

Key Dates

The end of tax year Australia is 30 June. This is the deadline for making sure your records are up to date, your deductions are organised and your tax planning is complete.

If you miss important deadlines, you could face penalties, interest charges or miss opportunities to reduce your taxable income.

As the financial year ending approaches, starting early gives you more time to review your position properly instead of rushing through EOFY tasks at the last minute.

Preparing Your Business for EOFY

Getting your business ready for the end of tax year requires careful planning and attention to detail. 

Keep Your Financial Records Updated

One of the most important tax tips for business owners is keeping your financial records accurate and current throughout the year.

The ATO continues to increase its use of data matching and compliance monitoring, making accurate record keeping more important than ever.

You should:

• Record all income and expenses as they happen
• Reconcile your bank statements regularly
• Review your profit and loss statement
• Compare actual results against your forecasts

Using accounting software like Xero, MYOB or QuickBooks can help you stay organised year round.

If you need support keeping your records accurate and compliant, our Bookkeeping Services can help simplify your EOFY preparation.

Review Operational Processes

The end of tax year Australia is also a good opportunity to review how efficiently your business operates.

You should assess whether manual processes can be streamlined through automation or better systems.

Consider:

• Automating invoicing and payment reminders
• Improving payroll processes
• Moving to cloud based accounting systems
• Digitising receipts and financial records

EOFY is also a good time to review how upcoming compliance changes, including the payday super changes, could affect your payroll processes and cashflow in the new financial year.

Manage Debts and Loans

Managing debts properly is an important part of EOFY planning.

You should review:

• Outstanding ATO debts
• Business loan repayments
• Division 7A loan arrangements
• Interest costs and refinancing opportunities

If you owe money to the ATO, addressing the issue early is usually better than waiting for enforcement action or penalties.

Inventory and Asset Management

If you hold inventory, the financial year ending is the right time to complete a stocktake and review your asset register.

You should:

• Write off damaged or obsolete stock
• Review depreciating assets
• Update vehicle and equipment purchases
• Confirm asset records are accurate

As Federal Budget measures and ATO thresholds can change regularly, you should confirm the latest instant asset write-off rules before making large purchases.

Prepay Expenses and Defer Income Timing

One of the more practical tax tips for EOFY is reviewing the timing of income and expenses.

Depending on your circumstances, you may benefit from:

• Prepaying expenses such as insurance or subscriptions
• Delaying invoices until after 30 June
• Bringing forward deductible business costs

Timing strategies should always be considered alongside cashflow, not just tax outcomes.

Declare Dividends and Trust Distributions

If you operate through a company or trust, EOFY is the time to review profit distributions carefully.

You should:

• Review company profits before declaring dividends
• Prepare trust distribution resolutions before 30 June
• Consider tax outcomes across family members or beneficiaries

Small documentation issues can create significant tax problems later if they are overlooked.

Lodge Returns and Avoid Penalties

The ATO is continuing to increase compliance activity around overdue lodgements and unpaid tax obligations.

You should ensure:

• Returns are lodged on time
• Super obligations are up to date
• PAYG withholding obligations are accurate
• Outstanding debts are addressed early

Good EOFY planning is not only about reducing tax. It is also about protecting your cashflow and avoiding unnecessary penalties.

Tax Tips for Individuals

Individuals can also benefit from proactive EOFY planning before the end of tax year. 

Understand Current Individual Tax Rates

The revised Stage 3 tax cuts are now in effect and may change how much tax you pay during the 2025/26 financial year.

Reviewing your expected income before EOFY can help you decide whether bringing forward deductions or managing investment income timing makes sense for your situation.

Use Superannuation Carry Forward Concessional Caps

If you have unused concessional super contribution caps from previous years and your total super balance is below the relevant threshold, you may be able to make additional deductible contributions.

You should:

• Review your available cap through myGov
• Make additional concessional contributions before 30 June if appropriate
• Submit the required notice to your super fund

This remains one of the more valuable End Of Financial Year Tax Tips for individuals looking to reduce taxable income while building retirement savings.

Plan Capital Gains Tax Carefully

If you sold shares, property or other investments during the year, you may need to manage capital gains tax carefully.

You should consider:

• Offsetting gains with capital losses
• Timing asset sales strategically
• Applying available CGT discounts
• Avoiding wash sale arrangements

The ATO continues to monitor investment reporting closely through data matching programs.

Manage Income Timing

Depending on your circumstances, the timing of income can affect your tax outcome.

You may choose to:

• Defer bonuses or commissions
• Bring forward deductible expenses
• Review trust distribution timing
• Plan around parental leave or lower income periods

Managing income timing carefully can improve your overall tax position.

Avoid Aggressive Tax Schemes

If a tax strategy sounds unrealistic or guarantees unusually large deductions, you should approach it carefully.

The ATO continues to target aggressive tax arrangements and unsupported deduction claims.

You should:

• Use a registered tax agent
• Keep records for all deductions
• Review ATO guidance before entering investment schemes

Protecting yourself from compliance issues is just as important as reducing tax.

Key Tax Planning Strategies

Effective planning before the financial year ending can help you maximise deductions and improve cashflow.

Maximise Deductions

Claiming all eligible deductions remains one of the most important tax tips for businesses and individuals.

You should:

• Keep receipts and supporting documents
• Review work related expenses carefully
• Claim eligible business expenses
• Track home office and vehicle expenses accurately

If you are unsure what you can claim, speaking with an accountant before EOFY can help reduce errors and missed deductions.

Review Instant Asset Write Off Opportunities

Instant asset write-off rules can change between Federal Budgets and financial years.

If you are considering purchasing equipment, vehicles or technology, you should confirm:

• Current eligibility thresholds
• Whether the asset must be installed before 30 June
• How the deduction affects your broader tax position

Large purchases should always be reviewed alongside your cashflow and financing position.

Review Trust And Company Structures

The end of tax year Australia is a good time to review whether your current business structure still suits your needs.

You should review:

• Trust distribution strategies
• Company loan arrangements
• Asset protection considerations
• Tax outcomes across related entities

Our Management Accounting Services can help you improve financial visibility, forecasting and business planning before EOFY.

What To Do After EOFY

EOFY planning does not stop once returns are lodged.

Set Financial Goals For The New Financial Year

After the financial year ending, take time to review:

• What worked well
• Areas where cashflow became tight
• Upcoming tax obligations
• Budget and forecasting improvements

Planning early for the new financial year can reduce pressure later.

Keep Good Records Year Round

One of the best long term tax tips is maintaining accurate records throughout the year rather than scrambling at EOFY.

You should:

• Store receipts digitally
• Reconcile accounts regularly
• Review reports monthly
• Monitor cashflow consistently

This makes EOFY preparation significantly easier.

Stay Informed On Tax Changes

Tax rules, ATO compliance priorities and Federal Budget measures can change regularly.

You should stay informed about:

• Superannuation changes
• Payroll obligations
• Deduction rule updates
• ATO compliance activity
• Business tax measures announced in the Federal Budget

Getting Ready Before The Financial Year Ends

The end of tax year is one of the best opportunities to review your cashflow, tax position, and financial processes before the new financial year begins.

Whether you are managing payroll, reviewing deductions or planning for upcoming budget changes, proactive EOFY planning can help you avoid unnecessary pressure later.

At Solve Accounting, we help business owners stay organised, improve financial visibility, and prepare for changing tax obligations with practical accounting and advisory support.

If you would like help preparing for EOFY or reviewing your tax position before 30 June, book a call with our team today.

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