EOFY 2025: Essential Tips for Australian Small Businesses

The End of Financial Year (EOFY) is a pivotal time for every Australian small business. It’s more than just a compliance exercise-it’s a chance to review, reset, and set your business up for a strong year ahead. With the 2024/25 financial year ending on 30 June 2025, now is the time to get proactive, avoid common pitfalls, and take advantage of every opportunity the EOFY brings. Here’s a comprehensive guide, packed with practical tips and direct links to trusted Australian news and advisory sources.

• 21 May: Fringe Benefits Tax (FBT) return and payment due
• 30 June: End of 2024/25 financial year
• 14 July: PAYG payment summaries due (if not using Single Touch Payroll)
• 31 October: Tax return due for sole traders, partnerships, and trusts
• 28 February 2026: Tax return due for most small companies

Missing these deadlines can result in penalties, so mark your calendar and check the ATO’s official schedule for any changes that may affect your business.

• Maintain accurate records of all transactions, including invoices, receipts, and statements.
• Use cloud-based accounting software like Xero or MYOB to streamline record-keeping and ensure your accounts are always current.
• Regularly reconcile your accounts-bank, receivables, payables, and payroll-to avoid last-minute surprises.

• Generate your balance sheet, profit and loss statement, and cash flow report.
• These documents are not only required for tax but also provide insight into your business’s financial health.
• Don’t leave this task to the last minute-up-to-date statements help identify errors early.

• Take advantage of the instant asset write-off for assets under $20,000 (for businesses with turnover under $10 million), provided they are installed and ready for use by 30 June 2025.
• Prepay up to 12 months’ worth of deductible expenses-such as rent, insurance, or subscriptions-to bring forward deductions.
• Write off any bad debts and obsolete assets to clean up your books and reduce taxable income.

• Ensure all superannuation contributions are paid and received by the fund before 30 June to claim deductions this year. The super guarantee rate is now 11.5%.
• Reconcile payroll, PAYG withholding, and outstanding leave entitlements. Make sure you’re compliant with Single Touch Payroll (STP) reporting.

• Complete a thorough stocktake if you hold inventory. Clear out obsolete stock and accurately value your assets for reporting and future planning.
• Update your asset register and write off unused or obsolete assets

• Complete a thorough stocktake if you hold inventory. Clear out obsolete stock and accurately value your assets for reporting and future planning.
• Update your asset register and write off unused or obsolete assets

• Tax laws and thresholds change regularly. Stay updated via the ATO website or consult your accountant to ensure compliance and to capitalise on new opportunities.

• Store all records securely, preferably using cloud solutions with regular backups. This protects your business from data loss and ensures easy access for audits or reviews.

EOFY isn’t just about compliance. It’s a strategic opportunity to:

• Set new financial targets: Review your performance and set realistic goals for the coming year.
• Review your business structure: Consider whether your current structure is still optimal for tax and growth.
• Take advantage of government grants and tax concessions: Explore what’s available for your industry and business size.
• Run EOFY promotions: Clear out old stock and boost cash flow with targeted sales and marketing campaigns.

• Engage a registered tax agent or accountant: Their expertise is invaluable for maximising deductions and ensuring compliance.
• Use integrated financial software: Automate invoicing, payroll, and reporting to save time and reduce errors.
• Keep communication open with your bookkeeper: Build a strong relationship for ongoing advice and support.
• Monitor ATO focus areas: Each year, the ATO highlights common errors and areas of scrutiny. Stay informed to avoid costly mistakes.

• NAB: EOFY Tips for Small Business

EOFY can be a springboard for your business’s next phase of growth. By preparing early, leveraging technology, and seeking expert advice, you’ll not only meet your compliance obligations but also unlock new opportunities for success in 2025 and beyond.

Original material for this post sourced from:

1.  https://business.nab.com.au/eofy-tips-to-help-small-business/
2. https://lawpath.com.au/blog/ultimate-legal-guide-to-end-of-financial-eofy-2025
3. https://www.smallbusiness.wa.gov.au/blog/end-financial-year-checklist
4. https://www.xero.com/au/initiative/end-of-financial-year/
5. https://www.ato.gov.au/businesses-and-organisations/starting-registering-or-closing-a-business/starting-your-own-business/supporting-your-small-business
6. https://www.commbank.com.au/business/articles/tax-prep-for-business.html
7. https://business.gov.au/finance/yearly-financial-tasks/end-of-financial-year-checklist