Who This Guide Is For
If you're a sole trader, freelancer, contractor, or run a small business as a company or trust in Australia — this EOFY checklist is for you. With 30 June approaching, the next two weeks are your final window to make decisions that directly reduce your FY2025–26 tax bill. This guide covers every action you should take before midnight on 30 June, from instant asset write-offs to last-minute super contributions. Don't wait until July — by then, most opportunities are gone.
Key EOFY 2026 Dates at a Glance
| Date | What Happens |
|---|---|
| 30 June 2026 | End of FY2025–26. Last day to incur deductible expenses, purchase business assets, and make super contributions for this financial year |
| 14 July 2026 | PAYG payment summaries due from employers (if you also have employment income) |
| 28 July 2026 | Quarterly BAS due (if you lodge quarterly) for April–June quarter |
| 31 October 2026 | Self-lodged tax return deadline. If using a tax agent, you typically get an extended deadline (as late as 15 May 2027) |
| 28 February 2027 | Annual GST return deadline (if applicable) |
ATO (ATO guidelines) note: If you use a registered tax agent, your lodgement deadline extends beyond 31 October — but you must be on their client list *before* 31 October. Contact a TPB Registered Tax Agent this month to secure the extension.
1. Instant Asset Write-Off — Buy Before 30 June
The instant asset write-off for FY2025–26 allows small business entities (aggregated turnover under $10 million) to immediately deduct the full cost of eligible assets costing less than $20,000 each. The asset must be installed and ready for use by 30 June.
What qualifies?
- Laptops, tablets, phones used for business
- Office furniture (desks, chairs, shelving)
- Tools and equipment (under $20,000 per item)
- POS systems, EFTPOS terminals
- Business-specific machinery
Calculation example
You buy a $2,800 laptop on 28 June 2026, used 80% for business. Your deduction:
`$2,800 × 80% = $2,240 immediate deduction in FY2025–26`
Without the instant write-off, this would be depreciated over 2 years — you'd only get ~$933 in year one. The write-off gives you the full amount now.
ATO guidelines: The asset must be installed and ready for use by 30 June. Ordering online on 29 June with delivery in July does *not* qualify.
2. Super Contributions — The Most Powerful EOFY Move
Concessional (before-tax) super contributions are taxed at just 15% inside super, compared to your marginal rate (which could be 30%, 37%, or 45%). As a self-employed person, you can claim a tax deduction for personal super contributions.
Key numbers for FY2025–26
- Concessional cap: $30,000
- Unused cap carry-forward: If your total super balance was under $500,000 on 30 June 2025, you can use unused concessional cap amounts from up to 5 previous years (starting FY2019–20)
- Government co-contribution: If you earn under $60,400 and make a non-concessional contribution, the government matches up to $500
Calculation example
You're a freelancer earning $95,000 (marginal rate 30% + 2% Medicare Levy = 32%). You contribute $10,000 as a concessional super contribution:
`Tax saving = $10,000 × (32% − 15%) = $1,700 saved`
Plus, the $8,500 remaining in super grows in a low-tax environment.
3. Write Off Bad Debts Before 30 June
If you've invoiced clients who haven't paid, and you've previously included those amounts as assessable income, you can write them off as a bad debt deduction — but only if you formally decide and document the write-off before 30 June.
- Document the decision in writing (board minutes for companies, diary entry for sole traders)
- The debt must be genuinely bad — not just slow-paying
- You don't need to tell the client you've written it off
4. Stocktake and Obsolete Inventory
If you carry trading stock, EOFY is when you do your annual stocktake. Two key opportunities:
- Obsolete stock: Write down the value of stock that can't be sold at normal price. The lower value reduces your closing stock figure → increases cost of goods sold → reduces taxable income
- Stock valuation method: You can choose between cost, market selling value, or replacement value. Pick the method that gives the lowest value for each item individually
5. Prepay Expenses for Next Year
Prepaying certain business expenses before 30 June lets you claim the deduction this year:
- Rent (up to 12 months)
- Insurance premiums (up to 12 months)
- Software subscriptions (annual plans)
- Professional association memberships
- Trade journals and subscriptions
The "12-month rule": If the service period is 12 months or less and ends by 30 June 2027, you can claim the full prepayment in FY2025–26.
6. Motor Vehicle — Logbook and Actual Costs
If you use your car for business, make sure your logbook is current (valid for 5 years) and complete a final odometer reading on 30 June. For FY2025–26:
- Cents per km method: 88 cents per kilometre, up to 5,000 km ($4,400 maximum)
- Logbook method: Claim the business-use percentage of all actual expenses (fuel, rego, insurance, depreciation, repairs)
Calculation example
You drive 12,000 km for business (60% of total 20,000 km) with actual costs of $9,800:
`Logbook method: $9,800 × 60% = $5,880 deduction`
`Cents per km method: 5,000 km × $0.88 = $4,400 (capped)`
The logbook method gives you $1,480 more — if you've kept the records.
Common Mistakes Self-Employed People Make
| Mistake | Why It's Wrong | What to Do Instead |
|---|---|---|
| Claiming 100% of phone/internet without a log | ATO expects a reasonable apportionment based on actual use | Keep a 4-week representative log; apply the percentage |
| Forgetting to separate private vs business bank transactions | Mixed accounts make audit painful and deductions harder to prove | Open a dedicated business bank account now |
| Missing the 30 June deadline for super contributions | Contributions must be *received* by the fund before 30 June | Initiate transfer by 25 June to allow processing time |
| Assuming all clothing is deductible | Only occupation-specific protective clothing and compulsory uniforms qualify | Check ATO occupation-specific guides |
| Not writing off bad debts before EOFY | You can't retrospectively write off bad debts after 30 June | Review receivables now and formally write off unrecoverable debts |
Records to Keep
- All business income invoices and receipts (5 years minimum)
- Expense receipts categorised by type
- Bank and credit card statements (business accounts)
- Motor vehicle logbook (valid for 5 years, must cover 12 continuous weeks)
- Home office records (floor area, hours worked, running costs)
- Super contribution receipts and notices of intent
- Asset purchase invoices showing date of installation
- Stocktake records (dated on or before 30 June)
- Bad debt write-off documentation (dated before 30 June)
Quick Checklist
- Review debtor list and formally write off any unrecoverable bad debts
- Complete annual stocktake; write down obsolete stock
- Purchase and install any business assets under $20,000 before 30 June
- Make super contributions — ensure they reach your fund by 30 June
- Lodge Notice of Intent to claim super deduction (within time limits)
- Prepay eligible expenses (rent, insurance, subscriptions) for next 12 months
- Complete motor vehicle odometer reading on 30 June
- Update/start a new logbook if current one is expiring
- Review home office expenses (fixed rate or actual cost method)
- Separate personal and business transactions in your records
- Book an appointment with a TPB Registered Tax Agent for extended lodgement deadline
Complex situation with multiple income sources, capital gains, or trust distributions? a registered tax agent (see the directory) Still unsure whether you need an agent? See our full decision guide.
*Disclaimer: This is general information only. Tax laws change and individual circumstances vary. Consult a registered tax agent for advice specific to your situation.*