Whether you’re just starting out in business, or you’ve been your own boss for years, the end of the financial year (EOFY) can be a busy time.
To help you organise your financial records and find the paperwork you’ll need to pass onto your accountant, we’ve put together a handy EOFY checklist to help you.
Download our free end of financial year checklist
Reporting government payments
Some government related business grants or support payments you have received need to be included in your tax return.
For sole traders that receive a taxable grant, include this as business income in your individual tax return.
For partnerships, trusts and companies that receive a taxable grant, report this as business income in your partnership or trust tax return, or income in your company tax return.
Visit the ATO website for a high level summary of government payments and whether they should be included in your tax return.
Tip: If you had to pause or close your business, visit the ATO website for guidance on how to manage your tax obligations.
Instant asset write-off
You may be eligible to claim the instant asset write-off for the cost of an asset you have purchased for your business in the 2024-25 tax year.
Eligible small business owners can deduct up to $20,000 per business asset/resource for the 2024-25 tax year. These purchases must be installed and ready for use in your business between 1 July 2024 and 30 June 2025.
Ask staff to wait for information to be 'tax ready' before lodging
If you employ staff, you need to complete your end of financial year Single Touch Payroll (STP) finalisation declaration by 14 July 2025. 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.
Encourage your staff to wait for their income statement to be marked ‘tax ready’ before lodging their individual tax return. If they choose to lodge with ‘not tax ready’ information, they may need to amend their return if their income statement is later finalised with different amounts.
Tax record keeping requirements
As a business owner, you need to keep records of all of your financial transactions under Australian tax law. This includes documentation explaining how your income and expenses were calculated, as well as documents supporting these calculations and any other elections or choices you have made within your tax return/s.
For example, if you use your home internet for business purposes and plan to claim a portion of the cost on your tax return, you’ll need to have supporting documentation (such as a usage log and tax invoice) to support the percentage of the cost you are claiming through tax.
It pays to be organised
While it can be tempting to put off completing your tax return, the sooner you know what your tax liability is, the better you can manage your cash flow. Check with your accountant for the tax due dates that apply to you.
Expand your tax knowledge
The more you learn about how tax impacts your business, and how to plan for it, the more you can make informed decisions throughout the year and at tax-time. If you’d like to learn more about managing your finances, register for one of our upcoming workshops.
Prepare for next financial year
The super guarantee (SG) rate will increase to 12 per cent on 1 July 2025. You’ll need to calculate SG contributions at 12 per cent for your eligible employees for payments of ordinary time earnings you make from this date.
Your SG contributions for the quarter ending 30 June (which are due by 28 July 2025) should still be calculated at 11.5 per cent for payments made prior to 1 July. Remember to pay your contributions in full, on time and to the right fund.
More information
Read the tax time toolkit on the ATO website for more information on tax time essentials, including a range of fact sheets on claiming expenses for home based businesses, motor vehicles and travel.
For more information on your business and tax obligations, read our finance information. You can also contact our free small business advisory service on 133 140.
