Financial year 2025: Key dates, tax changes and tips
Discover what the Federal Budget 2025 means for your business costs and tax in financial year 2025. Act early.
Published Friday 2 January 2026
Table of contents
Key takeaways
- Mark the key quarterly BAS and superannuation guarantee due dates (28 October, 28 February, 28 April, and 28 July) in your calendar to avoid late fees and stay compliant with ATO requirements.
- Prepare for the end of financial year on 30 June 2025 by reconciling all records, chasing overdue invoices, reviewing asset purchases for the $20,000 instant asset write-off, and ensuring payroll compliance.
- Leverage Federal Budget 2025 benefits including the $150 energy bill rebate for small businesses, $25,000 equipment upgrade grants, and enhanced procurement opportunities with government contracts.
- Plan for the superannuation contribution rate increase from 11.5% to 12% starting 1 July 2025, and consider how personal tax cuts beginning in 2026 will affect your cash flow and business planning.
Understanding the Australian financial year 2025
The Australian financial year (often called the fiscal year) runs from 1 July to 30 June. For 2025, this means the financial year started on 1 July 2024 and ended on 30 June 2025.
This period is what the Australian Taxation Office (ATO) uses for assessing income tax. For your small business, it dictates when you need to lodge tax returns, finalise your books, and plan your financial strategy.
Getting your head around the financial year helps you manage your cash flow, make smart decisions about expenses, and stay compliant without the last-minute stress.
Key financial year 2025 dates and deadlines
Keeping track of key dates is one of the best ways to stay organised and avoid late fees. Here are some of the important deadlines to add to your calendar for the 2025 financial year.
Quarterly BAS due dates:
- Quarter 1 (July – Sep): 28 October 2024
- Quarter 2 (Oct – Dec): 28 February 2025
- Quarter 3 (Jan – Mar): 28 April 2025
- Quarter 4 (Apr – Jun): 28 July 2025
Quarterly super guarantee due dates:
- Quarter 1 (July – Sep): 28 October 2024
- Quarter 2 (Oct – Dec): 28 January 2025
- Quarter 3 (Jan – Mar): 28 April 2025
- Quarter 4 (Apr – Jun): 28 July 2025
Other key dates:
- 30 June 2025: End of the 2025 financial year. Time to finalise records, conduct a stocktake, and prepare for tax time.
- 31 October 2025: Deadline to lodge your 2025 tax return if you're doing it yourself.
- 15 May 2026: Deadline to lodge your 2025 tax return if you use a registered tax agent.
How to prepare for end of financial year 2025
With some preparation, end of financial year (EOFY) can be organised and manageable. Here's a simple checklist to get you started:
- Get your records in order: Make sure all your invoices, receipts and bank statements are accounted for and reconciled in your accounting software
- Review your assets: Consider any last-minute purchases to take advantage of the instant asset write-off
- Chase overdue invoices: Follow up on any outstanding payments to improve your cash flow before 30 June
- Check your payroll: Ensure your employee wages, superannuation and Single Touch Payroll (STP) reporting are all up to date
- Talk to your advisor: Talk with your accountant or bookkeeper to identify tax planning opportunities and check you are compliant
What you need to know about the Federal Budget 2025
Financial year 2025 brings several changes for Australian small businesses from the Federal Budget and new compliance rules. The budget projects economic growth of 1.5%, inflation at 3% and wage increases of 3.25%. This positive outlook includes direct relief for businesses and consumers.
Key Federal Budget 2025 benefits for small businesses include:
- Energy relief: $150 energy bill rebate for one million small businesses
- Equipment upgrades: $25,000 grants available for 2,400 businesses
- Hospitality support: Frozen tap beer tax rates
- Cyber security: Enhanced digital tools and fraud protection support
- Tax relief: Personal tax cuts benefiting 1.5 million sole traders
The Buy Australian Campaign will provide $20 million to promote Australian-made products. The government plans to award up to 35% of procurement contracts to small businesses, and a $16 million Australia–India Trade and Investment Accelerator Fund will help you reach overseas markets more easily.
Understanding the Federal Budget 2025 to get more cash in your pocket
Under the budget, several tax changes are on the way that may impact how small businesses like yours can access cash flow and plan ahead. These span the instant asset write-off deduction, personal and company tax rate changes, as well as relief measures to the cost of living for everyday Aussies.
The Australian financial year 2025 (FY25) runs from 1 July 2024 to 30 June 2025. Unlike the calendar year, Australia's financial year starts mid-year, which affects when you plan asset purchases and deduction claims.
This timing means you should have completed all FY25 (financial year 2025) tax and business planning by 30 June 2025. For end of financial year planning, use Xero's EOFY resource calendar.
What can I claim on tax without receipts?
The ATO allows work-related deductions of up to $300 without receipts, provided there's a reasonable basis for the claim. Still, it's always best practice to keep records.
As always, the ATO allows work-related deductions for $300 without receipts, provided there's a reasonable basis for the claim. Still, it's always best practice to keep records.
What are the current company tax rates?
Company tax rates remain at 25% for FY25 if your business qualifies as a base rate entity, which requires having an aggregated turnover under $50 million and deriving 80% or less of income from passive sources. Your turnover must be under $50 million and most income must come from active trading, not passive investments.
Small business tax concessions simplify reporting and reduce your tax bill:
- Instant asset write-off: $20,000 immediate deduction for eligible assets
- Simplified depreciation: Streamlined asset depreciation calculations
- Prepaid expenses: Immediate deductions for advance payments
- Simplified stocktake: For businesses with inventory under $5,000
New opportunities to hire talent
Under new rules on non-compete clauses, small businesses will be able to hire for certain low and middle income roles with no limitations. This means you can access good talent more quickly.
How personal tax rates will change in the 2025 financial year
Personal tax rate changes begin from 1 July 2026 with reduced rates for the $18,201–$45,000 income bracket.
Tax rate reductions:
- 2026–27: rate drops to 15% (savings up to $268)
- 2027–28: rate drops to 14% (savings up to $536)
This increased consumer spending power could benefit retail, hospitality, and service businesses.
For businesses paying themselves a salary
If you operate your business through a company and draw a salary, these tax cuts mean a slight increase in your take-home pay. While the savings might seem modest, remember that every little bit helps when it comes reinvesting into your business.
For sole traders and partnerships
The tax cuts will directly reduce your personal tax liability, with the government estimating the average earner will have an extra $536 in their pocket each year once the changes are fully implemented, potentially improving your cash flow. This could provide more flexibility for business investments or personal savings.
Changes to superannuation and student loans
From 1 July 2025, the compulsory employer superannuation contribution rate will rise from 11.5% to 12% of their ordinary time earnings (OTE). And while it's not quite legislated yet, the government intends to slash $19 billion in debt for more than 3 million Australians with Higher Education Loan Program (HELP) loans.
Prepare for end of financial year 2025 with Xero
Preparing for the end of each financial year starts with the right tools. Xero helps you stay on top of your financial year obligations with features like business automation and cash flow forecasting. That means you can focus on running your business, not admin. Try Xero for free.
FAQs on financial year 2025
Here are some quick answers to common questions about the 2025 financial year.
What is the difference between a financial year and a calendar year?
A calendar year runs from 1 January to 31 December. The Australian financial year, which is used for tax purposes, runs from 1 July to 30 June.
When do I need to lodge my 2025 tax return?
Your tax return for the 2025 financial year (1 July 2024 – 30 June 2025) was due on 31 October 2025 if you lodged it yourself. If you use a tax agent, you may have until 15 May 2026.
Can I claim the instant asset write-off in FY25?
Yes, the government announced it is extending the $20,000 instant asset write-off until 30 June 2026. Eligible businesses can immediately deduct the full cost of assets costing less than $20,000 that are first used or installed ready for use within this period.
Disclaimer
Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.
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