Running a business or managing your personal finances in Australia comes with its own set of responsibilities, and one of the most important concepts you’ll hear time and again is the financial year. Unlike many countries where the financial year aligns with the calendar year, the Australian financial year runs from 1 July to 30 June. This timeline affects when you pay taxes, how you report income, and even when you might see businesses slash prices in massive “EOFY Sales.”
For individuals, it determines when to lodge a tax return, what records to prepare, and how deductions are calculated. For businesses, it is quarterly BAS lodgements to payroll and annual financial statements. Missing deadlines can bring penalties, while understanding the cycle can unlock opportunities for tax savings and more effective planning.
This blog is your complete guide to the financial year in Australia, explaining its dates, structure, and significance, along with practical tips to make the most of it. Whether you’re an individual taxpayer, a small business owner, or managing a growing company, this breakdown will help you navigate the financial year with confidence.
The financial year in Australia is a 12-month period that the government, businesses, and individuals use to measure financial performance and determine taxation obligations. It begins on 1 July each year and finishes on 30 June the following year.
For example, the 2024–25 financial year (often written as FY24/25) runs from 1 July 2024 to 30 June 2025. Any income you earn, expenses you claim, or taxes you pay during this period fall under that year’s reporting requirements.
This structure is different from the calendar year (January–December), which is more commonly used for everyday planning but has no relevance when it comes to taxes in Australia. The distinction is critical because it influences how individuals and businesses prepare and lodge their financial documents.
The Australian Taxation Office requires both individuals and businesses to report income and expenses
For individuals, the financial year determines the period covered by your annual tax return. All income, whether from wages, investments, or business activities, earned between 1 July and 30 June must be declared.
The tax return lodgement window generally opens on 1 July and closes on 31 October. However, if you use a registered tax agent, you may be eligible for extended lodgement dates. Missing this window without arranging an extension can result in penalties, so being aware of these deadlines is essential.
Businesses are even more closely tied to the financial year. They must:
Lodge Business Activity Statements monthly or quarterly.
Pay Goods and Services Tax (GST) if registered.
Finalise payroll reporting through Single Touch Payroll (STP).
Lodge company tax returns for the year by 31 October (or later with an agent).
Ensure superannuation contributions for employees are paid by 30 June to remain deductible.
For companies, EOFY is also a time for producing financial statements, reporting to stakeholders, and making strategic decisions for the next year.
Pro Tip: Businesses that maintain accurate records throughout the year, often through outsourced bookkeeping or accounting services, find EOFY far less stressful.
The financial year is not just a bureaucratic formality; it influences nearly every financial activity in Australia. Here’s why it matters:
1. Tax Reporting and Compliance
Individuals and businesses must report income, claim deductions, and pay taxes according to financial year dates. Missing lodgement deadlines can result in costly penalties.
2. Budgeting and Business Strategy
Companies often structure budgets, forecasts, and performance reviews around the financial year. It acts as a natural reset point for evaluating results and setting goals.
3. Government Benefits and Superannuation
Contributions to superannuation and eligibility for certain government offsets or benefits are calculated against the financial year. Making last-minute contributions before 30 June can reduce taxable income.
4. EOFY Sales and Planning
The term EOFY (End of Financial Year) has become a cultural marker in Australia. Businesses run clearance sales to manage stock and take advantage of financial planning strategies before closing their books.
5. Performance Evaluation
Investors, shareholders, and business owners use the financial year timeline to assess profitability, growth, and compliance.
In short, whether you’re an employee, investor, or business owner, the financial year directly affects your money.
The end of the financial year in Australia is 30 June. This date is significant because it represents the cutoff for income, deductions, and reporting obligations for that year.
For individuals, EOFY is the time to gather documents for example income statements, receipts for deductions, and investment summaries. Tax returns must usually be lodged by 31 October, though tax agents can extend this deadline.
For businesses, EOFY involves reconciling accounts, finalising payroll through STP, paying super contributions, preparing BAS, and closing the books for annual financial reporting. Many businesses also use this time to conduct internal audits, plan budgets, and reset strategies.
It’s also worth noting that EOFY has grown beyond finance; it’s a major sales season in Australia. Retailers and service providers advertise EOFY promotions, which stem from businesses trying to boost revenue before closing the books.
The new financial year always begins on 1 July. This marks the start of a fresh reporting cycle for taxes and business performance.
For individuals, it’s the point at which you begin tracking new deductions, incomes, and expenses for your next tax return. For businesses, it’s the beginning of new budgets, payroll cycles, and financial strategies.
Starting the year with good record-keeping habits can make the following EOFY far less stressful. Using cloud-based accounting software or engaging outsourced bookkeeping services helps businesses stay on top of obligations year-round.
The Australian financial year is divided into four quarters, particularly relevant for businesses that report BAS or GST on a quarterly basis.
These quarters structure how often businesses report to the ATO and help in tracking financial performance progressively. Missing quarterly deadlines can result in penalties, making quarterly planning essential.
EOFY means preparing the following:
Income statements (usually pre-filled through myGov).
Receipts for deductions such as uniforms, tools, travel, or education.
Records of private health insurance.
Investment income such as dividends, rental property income, or capital gains.
EOFY requirements are more extensive:
Business Activity Statements (BAS) – lodged monthly or quarterly.
Company Tax Return – covering income earned during the FY.
Superannuation Contributions – must be paid by 30 June.
Payroll Summaries – reported through STP.
Financial Reports – for shareholders, directors, or regulatory bodies.
Pro Tip: Preparing throughout the year instead of scrambling in June is the smartest EOFY strategy. Outsourcing bookkeeping or tax preparation can free up valuable time for business growth.
The financial year may be consistent, but tax laws and reporting requirements often change. For example, thresholds for superannuation contributions, tax offsets, and even reporting technologies like Single Touch Payroll (STP) can shift.
To stay compliant:
Regularly check ATO updates.
Use cloud-based accounting platforms like Xero or QuickBooks.
Work with a registered tax agent or bookkeeper.
Consider outsourcing finance functions if you’re a growing business.
By staying proactive, you reduce the risk of penalties and can also take advantage of deductions and offsets that might otherwise be overlooked.
The Australian financial year runs from 1 July to 30 June and underpins all taxation and reporting in the country. Understanding when the year starts and ends, how it is written, and what obligations come with EOFY is crucial for both individuals and businesses.
EOFY is not just about compliance, it’s an opportunity to maximise deductions, plan for the year ahead, and reset financial strategies. With proper preparation, you can turn what many view as a stressful time into a moment of financial clarity and advantage.
If you’d like to reduce EOFY stress, Aone Outsourcing Solutions offers bookkeeping, payroll, BAS lodgement, and tax preparation outsourcing services tailored for Australian businesses. Partnering with us means staying compliant, saving time, and focusing on growth while we handle the deadlines.
The Australian financial year runs from 1 July to 30 June.
2. Why does the Australian financial year run from July to June?
It was established historically to align with agricultural and colonial cycles in the Southern Hemisphere and has continued since.
3. How is the financial year different from the calendar year?
The calendar year runs January to December, while the financial year runs July to June, which is the basis for taxation.
4. What are the EOFY tax lodgement dates for individuals and small businesses?
Individuals must generally lodge by 31 October, while businesses may lodge BAS monthly or quarterly. Company tax returns are due by 31 October unless extensions apply.
5. What documents are needed to prepare for EOFY in Australia?
Individuals need income statements, receipts for deductions, and investment records. Businesses need BAS, payroll records, super contributions, and financial statements.
6. What are the Australian financial year quarters?
Q1: 1 July – 30 September
Q2: 1 October – 31 December
Q3: 1 January – 31 March
Q4: 1 April – 30 June
7. Do individuals and businesses have the same EOFY deadlines?
Not always. Individuals generally lodge by 31 October, while businesses may have varying lodgement schedules or extensions through tax agents.
8. What happens if you miss EOFY lodgement deadlines?
The ATO may issue penalties, charge interest, and withhold refunds. Businesses may also face compliance issues if BAS or payroll lodgements are late.
