30 June doesn’t care how busy you are. Here’s what needs to happen before the clock runs out — and why treating this as a compliance exercise is leaving money on the table.
Every year, business owners arrive at 30 June one of two ways: prepared, or scrambling. The prepared ones don’t just survive EOFY — they use it to tighten their financial position, reduce their tax bill, and step into the new financial year with momentum.
This checklist covers what actually needs to happen. Specific actions, real deadlines, and a few things you may not have been told about yet.
Most business owners treat EOFY as a compliance exercise. That’s a mistake. Handled properly, it’s a control point — to improve accuracy, reduce tax risk, strengthen cash flow, and protect your wealth.
1. Stocktake — as at 30 June
If your business holds inventory, a physical stocktake at 30 June directly determines your cost of sales, gross profit, and taxable income. Your accounting system should reflect reality, not optimism.
- Count and value all inventory as at 30 June (finished goods and materials)
- Write off obsolete, damaged or unsellable stock — this reduces your taxable income
- Update your accounting system to match physical quantities
Worth knowing: Stock can be valued at cost, market selling value, or replacement value — whichever is lowest. In a slow sales environment, that distinction can save a meaningful amount in tax.
2. Employee pay rates — effective 1 July 2026
The Fair Work Commission hands down its Annual Wage Review decision in June each year, with new minimum rates taking effect from the first full pay period on or after 1 July 2026. The 2026 review is expected to deliver an increase in the range of 3–4%.
- Check all employee pay rates against applicable modern awards
- Update payroll systems before the first pay run in July
- If staff are on annualised salaries, confirm those still absorb all award entitlements including penalties and loadings
⚠️ Serious risk: Underpaying employees is now a criminal offence under the Closing Loopholes Act. This isn’t a paperwork penalty — it carries jail time for company officers. If you’re unsure of your award obligations, get advice before 1 July.
3. Payday super — the big change for 1 July 2026
This is the most significant employer change in decades, and it takes effect on 1 July 2026. From that date, quarterly super contributions are gone. You must pay superannuation at the same time as wages, with contributions reaching the employee’s super fund within 7 business days of each payday. The calculation basis also changes — from Ordinary Time Earnings (OTE) to a broader concept called Qualifying Earnings (QE).
- Confirm your payroll software is Payday Super ready and SuperStream compliant
- If you use the ATO’s Small Business Superannuation Clearing House — find an alternative now. It closes 1 July 2026
- Review your cash flow: super is now a real-time payroll cost, not a quarterly lump sum
- Update onboarding processes so new employee super details are captured before their first payday
Cash flow heads-up: Businesses that have been smoothing quarterly super into cash flow forecasts need to recalibrate. Paying super with every pay run — not once a quarter — is a material timing change for many businesses.
4. STP finalisation — due 14 July
If you manage payroll in-house, Single Touch Payroll (STP) finalisation must be completed by 14 July. This signals to the ATO that your payroll year is closed and triggers income statements for employees to finalise their own tax returns.
- Confirm all pay runs have been reported through STP
- Reconcile total payroll to your general ledger
- Submit the finalisation declaration in your payroll software by 14 July
5. Payroll tax & WorkCover declarations
If your total wages — including directors’ salaries and certain contractor payments — exceed your state threshold, payroll tax applies. Rates and thresholds vary by state. WorkCover premiums must also be reconciled against actual wages each year.
Key deadlines: Victoria: 21 July | New South Wales: 28 July | Queensland: 21 July | South Australia: 28 July | Western Australia: 21 July
- Reconcile total taxable wages, including all deemed payments
- Lodge your payroll tax annual reconciliation by the applicable state deadline
- Update your WorkCover declaration with actual wages to avoid premium shortfalls or underinsurance
Grouping provisions: If you have multiple related entities, they may be grouped for payroll tax purposes — meaning the threshold applies across the group, not per entity. This catches a surprising number of business owners off guard.
6. Trust distribution resolutions — before 30 June
This one has a hard deadline with no extensions. If you operate a discretionary trust, resolutions must be prepared, signed, and in place before midnight on 30 June. Miss the deadline and the trustee becomes taxable on all trust income at the top marginal rate (47%).
- Review the trust deed — confirm who is eligible to receive a distribution
- Consider which beneficiaries should receive distributions given their marginal tax rates
- Prepare and sign resolutions before 30 June — a verbal agreement is not sufficient
- If your trust has corporate beneficiaries, ensure Division 7A compliance is considered alongside the distribution
⚠️ No second chances: The ATO has been active in challenging late or defective trust resolutions. Get this done early — not on 29 June.
7. Division 7A & shareholder loan accounts
If money has moved between your company and shareholders or related parties during the year — whether as a loan, payment, or use of company assets — Division 7A applies. Ignore it and the ATO will treat those amounts as unfranked dividends, taxable in full.
- Review all loan accounts between the company and shareholders or related entities
- Ensure minimum annual repayments have been made by 30 June
- Apply the ATO’s benchmark interest rate to unpaid loan balances
- Ensure complying loan agreements are in place (7-year or 25-year depending on security)
Director loan accounts: Running expenses through your director loan account during the year is common — but that balance needs to be resolved before year-end or formally documented. Don’t leave it to your accountant to find during the year-end review.
8. Super contributions for business owners
Your own super entitlements are easy to overlook while you’re busy funding everyone else’s. EOFY is the time to fix that.
- Confirm your personal concessional contributions are within the $30,000 cap for 2025–26
- Consider catch-up contributions if your super balance is below $500,000 and you have unused cap space from prior years
- Ensure contributions are received by your super fund by 30 June — not just processed. Allow several business days
- If you’re a sole trader or in a partnership, contributions must be made personally — there’s no employer to do it for you
9. Pre-year-end tax planning — your most valuable hour before 30 June
Every other item on this checklist is a task. This one is a conversation — and it’s where the real value of having a proactive accountant shows up. A pre-year-end tax planning meeting isn’t about reviewing what’s already happened. It’s about shaping what happens before the year closes.
Done properly, it covers five things:
Review actual business performance
How does profit for the year compare to budget or prior year? Are there legitimate timing opportunities — prepaying deductible expenses, deferring income, writing off bad debts — that can reduce taxable income before 30 June? Bad debts in particular must be formally written off in your accounting system before year-end to be deductible. They can’t be backdated.
Forecast your tax liability before it arrives
Calculate an estimate of taxable income now — not in October when the return is being prepared. Review whether your PAYG instalments are tracking accurately or whether a variation makes sense. For companies, consider the franking account balance and how that should inform distribution decisions.
Identify what tax minimisation strategies are still available
There are several legitimate strategies that must be actioned before 30 June to be effective for this financial year:
- Instant asset write-off — eligible assets must be purchased and installed ready for use before 30 June (currently $20,000 threshold for Small Business Entities)
- Prepayment of deductible expenses — under the 12-month rule, small businesses can prepay up to 12 months of eligible expenses and claim the deduction this year
- Superannuation contributions for owners and working family members — must be received by the fund before 30 June
- Trust distribution planning aligned to each beneficiary’s marginal tax rate
- Formally writing off bad and doubtful debts in the accounting system before year-end
Align your tax strategy with your lending goals for the year ahead
This is the conversation most advisors skip — and it can be a costly omission. If you’re planning to refinance, purchase property, or apply for a business loan in the next 12 months, your tax return is a lending document, not just a compliance one. Lenders assess your income, profit, and borrowing capacity based on what that return shows.
Aggressive tax minimisation that looks great on 30 June can quietly destroy your borrowing capacity by August. The goal is to optimise your tax position after understanding your lending intentions — not in isolation from them. Tax strategy and finance strategy need to be designed together.
Review where this year’s profit is landing
Are distributions and dividends being paid in the most tax-effective way? Is retained profit sitting in the right entity for asset protection and future access? Are there upcoming changes — a new business, a property purchase, a succession event — that should inform decisions made before this financial year closes?
When to have this meeting: Ideally now, in June — while there’s still time to act. A tax planning conversation in August, after the year has closed, is a very different (and much less useful) conversation.
10. Insurance & asset protection review
Your business has probably changed since you last looked at your insurance schedule. EOFY is a natural forcing function to check that your coverage reflects current reality — not the business you had three years ago.
- Review public liability, professional indemnity, and key person insurance
- Check insured values for business assets against current replacement costs — inflation has moved things
- Ensure policies align with your current business activities. Gaps discovered after a claim are expensive lessons
11. Structure & succession planning
As your business grows — and as your personal circumstances change — the structure you started with may no longer serve you well. EOFY is a practical moment to raise your head from the day-to-day and think about the bigger picture.
- Assess whether your current entity structure is still optimal for tax, asset protection, and flexibility
- Review personal wills, powers of attorney, and business succession arrangements
- If your business has grown significantly in value, consider whether a restructure makes sense before the new year
Timing matters: Some restructuring strategies — like small business CGT concessions — require specific eligibility tests to be met at a particular point in time. Get advice before acting, not after.
12. Finance & borrowing review
Interest rates, lending conditions, and cash flow requirements shift constantly. If you haven’t reviewed your business borrowings in the past 12 months, there’s a reasonable chance you’re paying more than you need to.
- Review all business loans, asset finance facilities, and commercial property mortgages
- Check whether fixed rate terms are expiring and what rollover options look like
- Confirm that interest costs are correctly allocated between deductible and non-deductible purposes
ATO debt reminder: Interest on ATO debt is often higher than what can be obtained through other finance options like a business loan and the interest on ATO debt is no longer tax deductible. Consider financing the debt if you plan to pay it off longer term.
The bigger picture
EOFY is not just about closing the books. The businesses that treat it strategically — reviewing their numbers, locking in distributions, cleaning up their loans, and thinking about the year ahead — enter 1 July stronger than those who treat it as a compliance chore.
The businesses that don’t? They tend to find out what they missed when they get their tax return back in October or May next year.
Ready to get this right before 30 June?
We work with business owners across all of this — from trust resolutions and Division 7A to cash flow strategy and Payday Super readiness. If you’d like to make sure everything is handled properly, get in touch.
This article is general commentary and does not constitute personal tax or financial advice. Always seek advice specific to your circumstances before taking action.