The Australian financial year runs from 1 July to 30 June each year. The current financial year is FY2025–26 (1 July 2025 – 30 June 2026). Individuals must lodge tax returns by 31 October 2026 (or by 15 May 2027 through a tax agent). Businesses must lodge BAS quarterly, pay superannuation by the 28th of the month following each quarter, and finalise payroll via Single Touch Payroll by 30 June.
Each year, the ATO processes over 15 million individual tax returns and nearly 3 million Business Activity Statements, and late lodgements alone generate hundreds of millions in penalties annually. Understanding the financial year is not just about compliance; it's about protecting your money and planning smarter.
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.
What Is the Australian Financial Year?
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 2025–26 financial year (often written as FY25/26) runs from 1 July 2025 to 30 June 2026. 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.
Missing ATO deadlines carries real financial consequences. Late lodgement penalties start at $280 for small businesses and increase based on the length of the delay and business size. General interest charges apply daily on outstanding amounts, and the ATO may impose additional penalties for repeated non-compliance.
|
Date |
Obligation |
Who It Applies To |
|
01-Jul-25 |
New financial year begins; tax returns open for self-preparers |
Individuals & businesses |
|
14-Jul-25 |
PAYG payment summaries due to employees (non-STP) |
Employers |
|
28-Aug-25 |
Taxable Payments Annual Report (TPAR) due |
Businesses using contractors |
|
28-Oct-25 |
Q1 BAS due (July–Sept); Q1 super contributions due |
Businesses |
|
31-Oct-25 |
Individual tax return deadline (self-preparers) |
Individuals |
|
28-Jan-26 |
Q2 BAS due (Oct–Dec); Q2 super contributions due |
Businesses |
|
28-Feb-26 |
Company tax return deadline (no tax agent) |
Companies |
|
28-Apr-26 |
Q3 BAS due (Jan–Mar); Q3 super contributions due |
Businesses |
|
15-May-26 |
An extended tax return deadline via a registered tax agent |
Individuals & businesses |
|
30-Jun-26 |
Financial year ends; super must be paid to be deductible |
All |
|
28-Jul-26 |
Q4 BAS due (Apr–Jun); Q4 super contributions due |
Businesses |
|
31-Oct-26 |
Individual tax return due for FY2025–26 |
Individuals |
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.
It was established historically to align with agricultural and colonial cycles in the Southern Hemisphere and has continued since.
The calendar year runs January to December, while the financial year runs July to June, which is the basis for taxation.
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.
Individuals need income statements, receipts for deductions, and investment records. Businesses need BAS, payroll records, super contributions, and financial statements.
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.
From 1 July 2026, employers must pay superannuation on every payday rather than quarterly. This removes the current cash-flow float that businesses rely on. Start reviewing your payroll systems and cash flow now — 2026 is closer than it feels.
Yes, with ATO approval. A Substituted Accounting Period (SAP) allows a different year-end, usually granted to foreign-owned subsidiaries to align with an overseas parent. It requires a formal application and ATO approval before use. Most Australian businesses are not eligible.
The super guarantee rate is 12% for FY2025–26. The super fund must receive contributions — not just transferred — before 30 June to be tax-deductible. Allow 3–5 business days for processing to avoid losing the deduction.
Late lodgement penalties start at $280 and increase with delay and business size. Interest accrues daily on outstanding amounts. Businesses missing superannuation guarantee deadlines lose the deduction and may incur the Superannuation Guarantee Charge, which is not tax-deductible.
