Everything you need to know about EOFY for your small business

What is end of financial year?

The financial year is a time period of 12 months used for tax purposes. The Australian financial year starts on 1 July and ends the next year on 30 June. At the end of fiscal year small business owners wrap up their books and begin finalising their tax time paperwork and accounting. From 1 July through to 31 October individuals and businesses submit their tax return to the Australian Taxation Office (ATO), who use the information to determine how much tax you owe.

To help you get ready for tax season we’ve created a video with 6 steps to make your end of financial year easy!

When is the start and end of financial year?

1 July 2021
A new fiscal year begins today.

30 June 2022
This marks the end of the fiscal year in Australia.

What do I need to submit at end of financial year?

Most businesses will need to lodge a tax return during end of financial year. A tax return is basically a summary of your income and expenses for the financial year. See our end of financial year calendar for key dates.

Self-employed and sole traders need to lodge an individual tax return at year end. Your business income and expenses go in your individual tax return using a separate business schedule. Individual tax returns can be submitted online via through myTax (accessed through myGov), by paper or through a registered tax agent. If you’re an Australian resident for tax purposes, you have to declare all income you earned both in Australia and internationally on your Australian tax return.

Companies lodge a separate company tax return each year. You must also lodge an individual tax return for income you earn via wages, shares and dividends from the company. Company tax returns can be lodged using SBR enabled software, through a registered tax agent or by paper.

How do I complete a tax return?

To complete your tax return accurately you first need to gather, organise and reconcile your financial records. Once your records are in order you can generate the financial reports that provide you the figures to fill out your tax return. The main reports are a profit & loss statement (P&L) and a balance sheet.

A P&L shows your total income and expenses for the year and is useful for determining your income tax. Expenses are subtracted from income to show how profitable your business is. The profit you make in a business represents your taxable income. A balance sheet lists your businesses assets and liabilities to work out your net assets.

What are the eofy lodgement dates for small business?

• Sole trader/self employed: If you lodge by yourself your tax return can be lodged from 1 July to 31 October each financial year. If you lodge via a registered tax agent contact them for more information.
• Partnership: If you lodge by yourself your partnership tax return can be lodged from 1 July to 31 October each financial year. If you lodge via a registered tax agent contact them for more information.
• Company: Company tax returns lodgement dates vary. The majority of company tax returns will be due 28 February each financial year, however we recommend you check the ATO website for your specific date.