Let’s be honest, the EOFY (End of Financial Year) has a bit of a reputation. Words like stressful and scrambled come to mind for a lot of business owners. But what if EOFY could actually work in your favour?
In this article we’ll show you how to adopt strategic tax planning to do more than just keep the Australian Taxation Office (ATO) happy. It can lay the groundwork for smoother operations, smarter financial decisions, and serious business growth.
So, let’s dive into how to make EOFY work for you.
1. EOFY Is Not Just About the Past, It’s About the Future Too
Sure, we need to tidy up the past 12 months, but EOFY should also be a checkpoint to ask: How do I want the next year to look?
Use this time to not just tick compliance boxes, but to make strategic forward-thinking decisions to shape your tax position for the entire upcoming year.
For example, activities such as these can drastically shift your tax planning from reactive to proactive:
- Reviewing your business structure,
- Evaluating income strategies,
- Mapping business growth plans, and
- Forecasting expenses.
2. Planning a Big Purchase? Timing Is Everything
Should you buy that new piece of equipment now or wait until July?
EOFY is the time to get strategic about the timing of major investments. Bringing forward big ticket deductible expenses (like fit-outs, vehicles, or tech upgrades) before June 30 can reduce your taxable income. On the flip side, deferring income or expenses into the new financial year might be the smarter play, especially if your business is expecting a lower income year ahead or wants to maximise cash flow.
It’s not a one-size-fits-all, so this is where tailored advice matters. For example, what works for your mate’s brand new biz might not work for your established practice. But an experienced accountant (hey, that’s me!) can help you out.
3. Keep Up To Date With Tax Changes
Keeping abreast of changes to tax laws and concessions can help you plan ahead, stay compliant and budget appropriately. Here’s a heads up for some tax law changes expected from 1 July 2025:
- Instant asset write-off thresholds will change, so don’t assume what worked last year still applies. The latest 2025-26 Federal Budget did not include a renewal of the instant asset write-off measure. That means you’ll only be able to write-off up to $1,000 of next financial year’s expenses, unlike the $20,000 limit last year.
- Superannuation guarantee (SG) rate will increase to 12%. This impacts your payroll planning.
Coming up with a plan now gives you a buffer, rather than a surprise bill. Confused about what changes are coming up? We can clue you in on what will affect your business.
4. Let’s Talk Records Management: The Boring Bit That Can Make EOFY A Breeze
If EOFY feels stressful, it’s probably because your record-keeping system needs a glow up.
Here’s the truth: better records = better decisions = better outcomes. Setting up a solid record keeping foundation now means:
- You can make real-time decisions instead of playing catch-up.
- You’ll have less stress come June 30.
- You’ll spot opportunities and risks way earlier.
You’ll also earn undying appreciation from your accountant. Because accurate record keeping makes it easier for your accountant to help you to make the most of deductions, and put strategies in place specifically tailored to your business.
One of the best ways to make record keeping easier is by investing in accounting software like Xero or MYOB. You’ll get access to helpful features like automation for streamlined processes, reporting and payroll management features to help you plan ahead and stay compliant.
5. Create an EOFY Action Plan (That Isn’t Just a Checklist)
EOFY shouldn’t be a tick-and-flick affair. It’s an opportunity to build an action plan that combines immediate compliance tasks (lodging, reconciling, reviewing payroll) with big-picture planning. Let’s look at an example:
Case Study: Strategic EOFY Planning in Action
Last EOFY, a medium-sized NDIS provider with 30 staff across two clinics didn’t just send us their numbers. They booked a strategy session well before the June rush. Here’s what happened:
- Structure review: We restructured their business from a sole director model into a trust arrangement with a corporate trustee. This gave them better asset protection and flexibility for income distribution.
- Strategic purchases: They brought forward the purchase of high-value therapy equipment (claimable under the instant asset write-off) and deferred a non-essential office refit until the next year, resulting in a healthier tax position.
- Payroll adjustments: We preemptively adjusted wages and SG payments in line with a rate change to avoid last-minute chaos.
- Forecasting: With their business growth plans worked out, we built a 12-month cash flow plan that allowed for scalable expansion of clinics without blowing the budget.
The result? A lower tax bill, ATO compliance, and a stronger foundation for growth.
Final Thoughts
EOFY isn’t just a compliance deadline, it’s an opportunity to be intentional. But you don’t have to do it alone. Because when you’ve got the right accountant in your corner EOFY becomes a tool, not a trauma.
So, let’s make this EOFY your most strategic one yet! Get in touch today to book a planning session.