EOFY 2026: Your Business Preparation Checklist

What’s New for EOFY 2026

Before diving into the checklist, here are the key changes specific to this financial year that every business owner needs to be across.

Payday Super starts 1 July 2026:  From 1 July, employers must pay superannuation contributions at the same time as wages not quarterly. Contributions must reach the employee’s super fund within 7 business days of each payday. The quarterly payment model ends with the Q4 2025–26 payment due 28 July 2026. This is the last quarterly super payment you will make.

SBSCH closes 1 July 2026: The ATO’s Small Business Superannuation Clearing House used by many small businesses to batch and submit super payments  is being decommissioned. If you currently use the SBSCH, you must transition to a Super Stream-compliant alternative clearing house before 1 July. Speak to your payroll software provider or super fund about your options now.

Instant asset write-off last chance at $20,000: The $20,000 instant asset write-off for businesses with turnover under $10 million from 1 July becomes permanent so the $20,000 threshold is secured going forward. However, any asset you want to claim this financial year must be purchased, installed, and ready for use before 30 June.

New PAYG withholding tax tables from 1 July 2026: The 16% marginal tax rate for income between $18,201 and $45,000 drops to 15% from 1 July 2026. Updated PAYG withholding tax tables will apply from your first pay run in the new financial year. Your payroll software should update automatically but verify before processing your first July payroll.

STP reporting changes From 1 July 2026, employers must report both Ordinary Time Earnings (OTE) and total super liability in Single Touch Payroll (STP) to support the ATO’s real-time Payday Super monitoring. Check with your payroll software provider that this reporting is set up correctly.

Part 1: Bookkeeping Checklist

Bookkeeping is the foundation everything else sits on. Your accountant cannot prepare an accurate tax return from incomplete or unreconciled records, and problems found in August cost more to fix than problems found in May. Work through this list before 30 June.

Reconcile everything

• Bank accounts: Reconcile all business bank accounts and credit cards to 30 June. Every transaction should have a coded record in your accounting software. Unreconciled items are the most common source of errors in EOFY reports.
• GST coding: Review your GST coding across the year. Incorrectly coded transactions affect both your BAS and your tax return. Pay particular attention to mixed-use expenses, international purchases, and any large one-off transactions.
• Accounts receivable: Review outstanding invoices. If any debts are genuinely unrecoverable, writing them off before 30 June allows you to claim a bad debt deduction in the current year. You cannot claim the deduction after the year ends.
• Accounts payable: Ensure all supplier invoices received before 30 June are entered, even if payment is due in July. Accrual-basis businesses need to capture expenses in the period they were incurred.
• Petty cash and loan accounts: Reconcile any director or shareholder loan accounts, petty cash floats, and intercompany accounts. Director loan accounts need particular attention for Division 7A compliance.

Asset register

• Review your fixed asset register and confirm depreciation has been calculated correctly for the year.
• Remove any assets that have been disposed of, written off, or scrapped during the year.
• For assets purchased this year, confirm they meet the instant asset write-off eligibility criteria (cost under $20,000, purchased and in use before 30 June, business turnover under $10 million).

Inventory

• If your business holds stock, conduct a physical stock take as close to 30 June as possible.
• Identify any obsolete, damaged, or unsellable stock and write it down to net realisable value before year end to bring forward the deduction.

Finalise your software

• Ensure Xero, MYOB, or your accounting platform is up to date and all transactions are coded to 30 June.
• Lock prior periods to prevent accidental changes to reconciled data.

Export and save year-end reports: profit and loss, balance sheet, aged receivables, aged payables, and general ledger.

Part 2: Tax Checklist

Once your books are clean and reconciled, your accountant can work efficiently to prepare your tax return and identify any year-end planning opportunities. The items below are worth reviewing before 30 June, not after.

Tax planning before 30 June

• Prepay deductible expenses: If your business is on a cash basis, prepaying expenses like insurance, subscriptions, rent, or professional memberships before 30 June can bring forward deductions into the current year. Most prepayments for a period of 12 months or less are immediately deductible.
• Review your income timing: If you can legitimately defer invoicing to July without affecting your commercial relationships, doing so pushes income into next year’s return. Accrual-basis businesses have less flexibility here, but it is worth discussing with your accountant.
• Trust distributions: If your business operates through a discretionary trust, the trustee resolution to distribute income must be made and documented before midnight on 30 June. Missing this deadline has significant tax consequences. Do not leave it until the last day.
• Superannuation contributions: If you are a business owner who wants to make additional concessional super contributions for yourself before the cap ($30,000 for 2025–26), the payment must be received by the fund before 30 June. Allow at least a week for processing.
• Division 7A: Ensure any loans from a company to shareholders or associates are either repaid or formalised under a complying loan agreement before lodgment. Your accountant can advise on the minimum annual repayment required.

Instant asset write-off final check

• Assets must be costing less than $20,000 each, purchased, first used, or installed ready for use before 30 June 2026.
• Your business must have aggregated turnover under $10 million.
• The write-off applies on a per-asset basis there is no cap on the number of assets you can claim.
• From 1 July 2026, the $20,000 threshold is permanent but assets purchased in the new year will be claimed in next year’s return, not this one.

Business structure review

This time of year is also a good moment to take stock of whether your current structure still makes sense. The 2026–27 Federal Budget introduced a 30% minimum tax on discretionary trusts from 1 July 2028, and three-year rollover relief from 1 July 2027 for businesses that want to restructure without triggering CGT. If you operate through family trust and haven’t yet mapped out your options, now is the time to start that conversation.

BAS and GST

• Your June quarter BAS (or June monthly BAS) will be due in late July. Make sure your GST-coded transactions are accurate before lodgment.
• If your business has been making PAYG instalment variations during the year, ensure those variations are reconciled against actual income.

Record keeping

• The ATO requires business records to be kept for a minimum of five years. Ensure your digital records, receipts, and contracts from the 2025–26 year are stored securely.
• Cloud accounting software like Xero retains your data automatically but physical receipts for significant purchases should be scanned and saved.

Part 3: Payroll Checklist

Payroll has its own set of EOFY obligations, and this year the stakes are higher than usual given the Payday Super transition on 1 July.

Before 30 June

• Pay superannuation early: For super contributions to count toward this financial year, the payment must be received by the super fund before 30 June not just sent. Allow at least two weeks for clearing times, particularly if using a commercial clearing house. The Q4 super deadline under the old quarterly system is technically 28 July, but paying early means contributions are deductible in the current year.
• Process bonuses and commissions: Any bonus or commission you want included in this year’s payroll records and income statements must be processed through your payroll system before 30 June. Last-minute bonus runs on 29 June create errors.
• Review payroll accuracy for the full year: Check that every pay run from 1 July 2025 to 30 June 2026 has been processed correctly. Look for missed pays, incorrect leave accruals, and any manual adjustments that weren’t properly reconciled.
• Confirm the SG rate is set to 12%: The superannuation guarantee rate has been 12% since 1 July 2025. Check your payroll software is calculating super correctly on ordinary time earnings for every employee.
• Review leave balances: Check that annual leave, personal leave, and long service leave balances in your payroll system match your records and employee expectations. Discrepancies are easier to resolve before year end.

Single Touch Payroll (STP) finalisation

• Ensure your payroll is fully reconciled at the EOFY against the STP records with the ATO.  Any discrepancies will be picked up and may incur an ATO payroll audit.  Speak to your payroll provider if needed or ask our team for assistance.
• Submit your STP finalisation event for all employees by 14 July 2026. This confirms your employees’ year-to-date income, tax withheld, and super figures and allows them to pre-fill their individual tax returns.
• If an employee has left during the year, ensure their records are finalised correctly.
• From 1 July 2026, STP must also report Ordinary Time Earnings and total super liability. Confirm your payroll software is updated before the first July pay run.

Transition away from the SBSCH

• If your business currently uses the ATO’s Small Business Superannuation Clearing House, you must transition to an alternative before 1 July 2026 with enough time to set up the new systems before your first payroll of the 2027 financial year.
• Contact your payroll provider to assist you to integrate to your software provider (Xero, MYOB, KeyPay) most have integrated clearing house solutions that are SuperStream compliant.
• Do not leave this until July. Transitions take time to set up and test.

Update for Payday Super from 1 July 2026

• From 1 July, every pay run must include a super contribution that reaches the employee’s fund within 7 business days of the pay date.
• Review your cash flow the shift from quarterly lump-sum payments to per-payroll super will change your outgoing cash rhythm significantly.
• Update your payroll software settings and clearing house configuration before processing your first July pay run.

Annual Wage Review

• The Fair Work Commission announces the outcome of the Annual Wage Review each year in early June, with new minimum wage rates taking effect from the first full pay period on or after 1 July.
• The 2026–27 decision is expected in early June 2026. Once announced, update your payroll so it is ready for that first full July period before the first July pay run. Employees paid under modern awards must receive the updated rate from the effective date.

Review relevant award rates for each employee’s classification if you have award-covered staff.

Key Dates at a Glance:

Date	What’s Due
Before 30 June	Super paid and received by fund for Q4 deductibility
Before 30 June	Trust distribution resolutions signed
Before 30 June	Instant asset write-off purchases finalised
Before 30 June	Bonuses and commissions processed and paid in payroll and the bank.
30 June	End of financial year – books reconciled
1 July 2026	Payday Super begins
1 July 2026	SBSCH closes – transition complete
1 July 2026	New PAYG withholding tables apply
14 July 2026	STP finalisation due for all employees
28 July 2026	Final Q4 quarterly super payment due (if not paid early)
Late July 2026	June monthly BAS due (and if we lodge your quarterly BAS this is due late August.)

How Carbon Can Help

EOFY is one of the busiest periods for our teams across Australia, and the earlier you start, the smoother it goes. Whether you need help with bookkeeping reconciliation, tax planning before 30 June, payroll finalisation, or getting ready for Payday Super our accountants, bookkeepers, and payroll specialists are here to work through it with you.

Disclaimer: This checklist is general in nature and does not constitute personal tax or financial advice. Tax laws change frequently and individual circumstances vary. Please speak with your Carbon accountant or bookkeeper for advice specific to your business.