10 Things to Know This Tax Time (EOFY 2026 Guide for Australian Small Businesses)

Tax time in Australia is more than just lodging returns, it’s a critical period for reviewing your finances, maximising deductions, and ensuring compliance with Australian Taxation Office (ATO) requirements.

With increasing ATO scrutiny and real-time reporting systems like STP, getting your bookkeeping, payroll, and records right has never been more important.

Here are the 10 essential things every small business must know this tax time to stay compliant and minimise risk.

1. EOFY Deadline Is 30 June – But Preparation Starts Earlier

The end of the financial year (EOFY) is 30 June, marking when businesses must finalise records, reconcile accounts, and prepare for tax lodgement.

Your tax preparation should start weeks before EOFY, not after.

2. Accurate Bookkeeping Is Non-Negotiable

The ATO requires businesses to maintain accurate and complete financial records, including:

• Invoices
• Receipts
• Bank reconciliations
• Payroll data

Poor records can cause delays in tax returns, missed deductions and audit risks

3. Single Touch Payroll (STP) Is Mandatory

STP is no longer optional.

Employers must report wages, PAYG withholding and Superannuation, each time employees are paid via payroll software.

This means, payroll errors are visible in real time and compliance issues are easier for the ATO to detect.

4. Payday Super Starts 1 July 2026

Payday Super is one of the biggest changes this tax time.

From 1 July 2026, employers must pay super at the same time as wages and ensure payments are received by funds within 7 business days

This replaces quarterly super payments and impact increased super payment frequency, cash flow changes, higher compliance expectations.

5. Super Must Be Paid On Time to Be Deductible

To claim a tax deduction, Super contributions must be paid and received on time

Late super is not tax deductible and may result in penalties and Super Guarantee Charge (SGC)

6. Understand What You Can Claim (Deductions)

Common small business deductions include:

• Operating expenses
• Equipment purchases
• Vehicle expenses
• Professional services

Important: Assets must be installed and ready for use before 30 June to claim in that year

7. Cash Flow Matters More Than Last-Minute Spending

Many businesses rush to spend money before EOFY to reduce tax.

This can backfire.

Instead, focus on sustainable cash flow and avoid unnecessary purchases

8. Payroll & Employee Data Must Be Correct

With STP and Payday Super, employee details must match ATO records and super fund details must be accurate.

Errors can lead to payment rejections, compliance flags and delays in employee tax reporting

9. The ATO Has Greater Visibility Than Ever

Modern systems mean the ATO can monitor:

• Payroll (via STP)
• Super payments
• Business activity statements (BAS)

Increased data matching means faster detection of late or incorrect payments and higher compliance expectations.

10. Professional Support Saves Time, Money and Risk

EOFY is not just about compliance, it’s about strategy.

Working with a professional ensures:

• Accurate reporting
• Maximised deductions
• Reduced risk of ATO penalties

 

Quick EOFY Checklist

Before 30 June:

• Finalise bookkeeping
• Reconcile accounts
• Review payroll and STP reporting
• Pay outstanding super

After 30 June:

• Finalise STP data
• Prepare tax return
• Review business performance