End of financial year: the business finance questions to ask before 30 June

The end of the financial year compresses a lot of decisions into a few weeks: equipment purchases, tax planning, stock for the new year, payroll changes and the June-quarter BAS. It’s also when accountants, lenders and valuers are busiest. The owners who handle it best aren’t the ones with the most money — they’re the ones who asked the right questions in April and May instead of late June.

Here are those questions, with the facts you need to answer them.

Does buying equipment before 30 June actually help me?

Start with need, not tax. If the business needs a vehicle, machine or technology, buying it before 30 June may bring a deduction into the current year. The ATO says the $20,000 instant asset write-off is permanent from 1 July 2026 for eligible small businesses with aggregated annual turnover under $10 million. It applies per asset: each eligible asset costing less than $20,000 can be immediately deducted.

What that means for timing:

• There’s no annual “last chance” rush for assets under $20,000 now that the concession is permanent.
• Buying before 30 June still shifts the deduction into the current year, which may or may not suit your tax position.
• Assets of $20,000 or more follow normal small business depreciation rules.

Then ask the cash question: if you pay cash in June, what’s left for July? Financing a genuine purchase can protect working capital. Our page on borrowing to buy equipment compares the options. Check the tax side with your accountant before deciding.

Will the June-quarter BAS be covered?

For quarterly lodgers, the April–June BAS is due 28 July according to the ATO. That bill lands in the same month as annual insurance renewals, subscriptions and often a slower trading period — a common squeeze.

Questions to ask in May:

• Roughly what will the June BAS be? Your bookkeeping software can usually estimate it.
• Is the GST and PAYG withholding set aside? Or has it been used for stock and wages?
• If there’s a shortfall, what’s the plan? Cash reserves, an ATO payment plan, a line of credit or a short loan.

The options are compared in using a business loan to pay tax or BAS.

Is payroll ready for Payday Super?

From 1 July 2026, Payday Super requires employers to pay super at the same time as wages, and contributions must reach employees’ super funds within 7 business days of payday, according to the Fair Work Ombudsman. For businesses that previously paid super quarterly, this is a real cash flow change:

• Super leaves the account every pay cycle, not in a quarterly lump.
• The quarterly float disappears, which some businesses relied on without realising.
• Payroll software and processes need to handle the new timing.

If you’re hiring into the new year, the full cost of each new employee now hits cash flow immediately. Our page on borrowing to hire staff explains how to fund a ramp-up.

Is any ATO debt being managed?

EOFY is a good moment to look squarely at any tax debt. Two ATO facts sharpen the question:

• General interest charge is calculated on a daily compounding basis on overdue amounts.
• ATO interest charges incurred from 1 July 2025 are no longer tax deductible, so carrying a tax debt costs more in real terms than it used to.

The ATO also says it may disclose business tax debts to credit reporting bureaus when at least $100,000 is overdue by more than 90 days and the business isn’t engaging. If you’re carrying a debt into the new year, compare a payment plan with clearing it using finance — see business loans with ATO debt.

If you’d like a real person to run those numbers with you before the June rush, send a short enquiry. There’s no credit check when you first enquire.

Will there be enough cash for July?

July is often expensive. Common costs that bunch together:

July cost	Why it bunches
June-quarter BAS (due 28 July)	Quarterly cycle
Insurance renewals	Many policies renew on 1 July
Annual subscriptions and licences	Financial-year billing
Workers’ compensation premiums	Annual cycle in many states
Stock for the new year	Suppliers’ new-year pricing or ranges
Super under Payday Super	Now every pay cycle

Build a simple cash forecast for June, July and August. If the low point is uncomfortably low, a line of credit arranged in May — while statements look strong — is much easier than scrambling in late July. Our page on when to apply for business finance explains why timing matters.

Should I borrow before 30 June?

Borrow only for a purpose that makes sense on its own merits. Good EOFY reasons:

• Equipment the business needs, especially if paying cash would drain working capital.
• Stock for July that you’ll sell through in the new year.
• Clearing a tax debt before it grows further.
• A buffer for the July cost bunch, arranged while the business looks strongest.

Poor reasons:

• Buying things you don’t need to chase a deduction.
• Borrowing without a clear repayment source.
• Waiting until the last week when every professional is busy.

What paperwork should I get in order?

EOFY is also the natural time to tidy the documents lenders ask for. If you’ll need finance in the coming year, get these ready as the year closes:

• Year-end financial statements — profit and loss and balance sheet.
• Lodged BAS for all four quarters.
• A plan to lodge the tax return — lenders like current returns, and some need them for larger loans.
• Twelve months of clean business bank statements, with every account included.
• A list of debts as at 30 June.

The documents checklist sets out what each loan type usually needs.

What if I’m already behind as June approaches?

Plenty of businesses reach May with overdue lodgements, a growing ATO balance or a thin account. The order of operations still helps:

1. Lodge what you can, starting with the most recent BAS, so the true position is known.
2. Estimate the June BAS and the July cost bunch, even roughly.
3. Talk to the ATO or a lender early — engagement keeps options open, and the ATO treats a business that’s working with it differently from one that isn’t.
4. Separate this year’s tax from last year’s debt in your planning, so the new year doesn’t start with two problems.
5. Hold off on discretionary purchases until the tax picture is clear.

Being behind isn’t unusual and it isn’t the end of the road. The businesses that come through best are the ones that face the numbers in May rather than in August. Our page on whether you need up-to-date tax returns explains how lenders treat overdue lodgements.

What does a well-planned EOFY look like? (Illustrative example)

Illustrative only — invented business.

A Newcastle electrical contractor sits down with her bookkeeper in early May. They estimate the June BAS, spot that two utes are due for replacement, and notice July’s insurance renewal and a new apprentice starting under Payday Super.

• One ute costs under $20,000 and is bought in June; the accountant confirms the deduction suits this year.
• The second, more expensive ute is financed, keeping cash for July.
• A modest line of credit is set up in May as a buffer for the BAS and insurance.
• By late July, the BAS is paid on time, the apprentice’s wages and super flow each pay cycle, and the line of credit is barely used.

No single decision was dramatic. Asking the questions early made each one easy.

Plan your June, protect your July

The financial year’s end is predictable, which means the squeeze is avoidable. Enquiring doesn’t involve a credit check, your details aren’t auctioned to a crowd of lenders, and a real person helps you line up equipment, tax and cash for the new year. Please fill in the form accurately — especially the amount, what it’s for and your timing — so the plan fits your calendar from the first call.

Get your EOFY finance sorted early →