Australian financial year 2026-27: key dates, deadlines, and how to prepare

Published Friday 12 June 2026

Table of contents

• Understanding the Australian financial year
• Key financial year dates and deadlines
• How to prepare for end of financial year
• Common EOFY mistakes to avoid
• How to lodge your tax return
• What you need to know about the Federal Budget 2026-27
• What's changing for FY2026-27 and beyond
• Simplify your financial year planning with Xero
• FAQs on the Australian financial year

Key takeaways

• The Australian financial year runs from 1 July to 30 June. For FY2026-27, the year starts on 1 July 2026 and ends on 30 June 2027.
• Mark quarterly BAS and superannuation guarantee due dates (28 October, 28 January, 28 April, and 28 July) in your calendar to avoid late fees and stay compliant with ATO requirements.
• Prepare for EOFY by reconciling all records, chasing overdue invoices, reviewing asset purchases for the $20,000 instant asset write-off, and checking payroll compliance.
• Payday Super is now in effect from 1 July 2026, requiring super payments on every payday. Personal tax cuts have also started, with the $18,201 to $45,000 bracket now taxed at 15%.

Understanding the Australian financial year

The Australian financial year (often called the fiscal year) runs from 1 July to 30 June. For FY2026-27, this means the financial year starts on 1 July 2026 and ends on 30 June 2027.

This period is what the Australian Taxation Office (ATO) uses for assessing income tax. For your small business, it sets the timeline for lodging tax returns, finalising your books, and planning your financial strategy.

Xero Small Business Insights data from over 520,000 Australian small businesses shows that sales grew 6.7% year-on-year in the December quarter of 2025; the strongest result since mid-2023. Understanding the financial year cycle can help you build on this momentum and plan expenses around seasonal trends.

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 dates and deadlines

Keeping track of key dates is one of the best ways to stay organised and avoid late fees. Here are the important deadlines to add to your calendar for the FY2026-27 financial year. If you need help with lodging your BAS, check out this step-by-step guide.

Here are the quarterly BAS due dates for FY2026-27.

• Quarter 1 (July to September): 28 October 2026
• Quarter 2 (October to December): 28 February 2027
• Quarter 3 (January to March): 28 April 2027
• Quarter 4 (April to June): 28 July 2027

Your quarterly super guarantee contributions are due on these dates.

• Quarter 1 (July to September): 28 October 2026
• Quarter 2 (October to December): 28 January 2027
• Quarter 3 (January to March): 28 April 2027
• Quarter 4 (April to June): 28 July 2027

If you lodge BAS monthly, your return is generally due on the 21st of the following month. For example, your July 2026 BAS is due by 21 August 2026. Note that the December 2026 BAS has an extended deadline of 21 February 2027.

There are a few other important dates to keep in mind for FY2026-27.

• 30 June 2027: end of the FY2026-27 financial year. Time to finalise records, conduct a stocktake, and prepare for tax time.
• 31 October 2027: deadline to lodge your FY2026-27 tax return if you're doing it yourself.
• 15 May 2028: deadline to lodge your FY2026-27 tax return if you use a registered tax agent.

How to prepare for end of financial year

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 $20,000 instant asset write-off before 30 June.
• Chase overdue invoices: follow up on any outstanding payments to strengthen your cash position before the end of the financial year.
• Check your payroll: confirm your employee wages, superannuation contributions, and Single Touch Payroll (STP) reporting are all up to date.
• Talk to your advisor: speak with your accountant or bookkeeper to identify tax planning opportunities and check you're compliant.

According to Xero Small Business Insights, Australian small businesses waited an average of 23.9 days to be paid in the December quarter of 2025; the fastest result since tracking began in 2017. While payment times are trending in the right direction, invoices were still paid an average of 6.6 days late. Chasing overdue invoices before 30 June can help you close off the financial year with a clearer cash position.

Common EOFY mistakes to avoid

Even well-organised businesses can slip up at EOFY. Knowing the most common mistakes can help you steer clear of penalties and missed opportunities.

• Missing super guarantee deadlines: late super payments mean you lose the tax deduction and may face the super guarantee charge, which includes interest and administration fees.
• Claiming ineligible deductions: only claim expenses that are directly related to earning your business income. The ATO's data-matching program flag unusual claims, so keep clear records.
• Failing to declare all income: every dollar of business income needs to be reported, including cash payments, contra arrangements, and one-off jobs. The ATO cross-checks bank data and payment platforms.
• Poor record-keeping: missing receipts and unreconciled transactions create headaches at tax time. Keeping your records up to date throughout the year makes EOFY far smoother.
• Not reconciling before 30 June: leaving bank reconciliation to the last minute increases the risk of errors in your tax return. Aim to reconcile your accounts regularly so there's less to do at year end.

How to lodge your tax return

Once the financial year ends on 30 June, you'll need to lodge a tax return with the ATO. There are 3 main ways to do this.

1. Lodge yourself through myTax

You can lodge your individual or sole trader tax return online through myGov using the ATO's myTax service. It's free, and much of your income information is pre-filled from employers, banks, and government agencies. Your deadline is 31 October.

2. Use a registered tax agent

A registered tax agent can lodge on your behalf and may secure you an extended deadline of up to 15 May the following year. They can also help you identify deductions you might miss and make sure your return is accurate. You can find a registered tax agent through the Tax Practitioners Board.

3. Lodge through SBR-enabled software

If you use Standard Business Reporting (SBR) enabled accounting software, you may be able to lodge certain business tax forms directly from your software. This can save time and reduce manual data entry for activity statements and other business lodgements.

What you need to know about the Federal Budget 2026-27

The Federal Budget 2026-27 introduced several changes that affect Australian small businesses. Here are the key items worth knowing about.

Instant asset write-off

The $20,000 instant asset write-off has been made permanent as part of the 2026-27 Federal Budget. Eligible small businesses can immediately deduct the full cost of assets costing less than $20,000 that are first used or installed ready for use.

Energy and business support

Key Federal Budget measures for small businesses include:

• $150 energy bill rebate for 1 million small businesses (this program ran until 31 December 2025)
• $25,000 equipment upgrade grants available for 2,400 businesses
• Frozen tap beer tax rates for hospitality businesses
• Enhanced cyber security tools and fraud protection support

Procurement and export opportunities

The Buy Australian Campaign is providing $20 million to promote Australian-made products. The government plans to award up to 35% of procurement contracts to small businesses. A $16 million Australia-India Trade and Investment Accelerator Fund is also opening new paths for businesses looking to reach overseas markets.

Company tax rates

Company tax rates remain at 25% for FY2026-27 if your business qualifies as a base rate entity. To qualify, your aggregated turnover must be under $50 million and 80% or less of your income must come from passive sources.

Small business tax concessions that can simplify reporting and reduce your tax bill include:

• 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

What's changing for FY2026-27 and beyond

Several regulatory changes are coming that could affect how you run your business. Here's what to plan for over the next few years.

Superannuation rate increase to 12%

The compulsory employer superannuation contribution rate is 12% of ordinary time earnings, having increased from 11.5% on 1 July 2025. If you have employees, make sure your payroll reflects the current rate to avoid penalties.

Payday Super (now in effect from 1 July 2026)

From 1 July 2026, employers must pay super on every payday rather than quarterly. This replaced the previous system, where super was due 28 days after the end of each quarter. Payday Super means super contributions now align with each pay cycle, giving employees faster access to their entitlements.

To prepare, check that your payroll software supports payday-frequency super payments. Talk to your accountant or bookkeeper about updating your cash flow planning to account for more frequent outflows.

Personal tax cuts

Personal tax rate changes took effect from 1 July 2026, with reduced rates for the $18,201 to $45,000 income bracket. In 2026-27, the rate is 15%, saving up to $268 per year. By 2027-28, it falls further to 14%, with savings of up to $536 per year.

For sole traders and partnerships, these cuts directly reduce your personal tax liability. For businesses paying themselves a salary through a company structure, the cuts mean a modest increase in take-home pay. The increased consumer spending power could also benefit retail, hospitality, and service businesses.

Non-compete clause changes

The government has proposed changes to non-compete clauses that would allow small businesses to hire for certain low and middle income roles without restrictions. The legislation is still in consultation, with the changes expected to take effect from 2027. If passed, this could open up a wider talent pool for small businesses.

HELP debt relief

The government has reduced $19 billion in debt for more than 3 million Australians with Higher Education Loan Program (HELP) loans. The 20% reduction was legislated and applied to accounts in 2025. While this doesn't directly affect business tax, it may increase disposable income for employees and consumers.

Simplify your financial year planning with Xero

Staying on top of the financial year is simpler when your records are up to date year-round. Xero's cloud accounting software helps you automate bank reconciliation, track expenses, and run reports so you're always prepared for EOFY and tax time.

Spend less time on admin and more time running your business; Get one month free.

FAQs on the Australian financial year

Here are answers to some frequently asked questions about the Australian 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 runs from 1 July to 30 June and is the period the ATO uses for assessing income tax.

What financial year are we in?

If today's date falls between 1 July 2026 and 30 June 2027, you're in the FY2026-27 financial year. You can confirm the current period in your myGov account or on the ATO website.

When do I need to lodge my tax return?

If you're lodging yourself, your tax return is due by 31 October after the financial year ends. If you use a registered tax agent, you may have until 15 May the following year.

Can I claim the instant asset write-off in FY2026-27?

Yes. The $20,000 instant asset write-off is now permanent. It applies to both new and second-hand assets, and you can claim it through your annual tax return or with the help of your accountant.

What happens if I miss EOFY deadlines?

Late lodgement penalties start at $313 for each 28-day period your return is overdue, and the ATO may also charge interest on unpaid amounts. Missing super guarantee deadlines means you lose the tax deduction and may face the super guarantee charge.

When does Payday Super start?

Payday Super took effect on 1 July 2026. If you miss a payday super deadline, you may face the superannuation guarantee charge, so make sure your payroll software is set up to handle payday-frequency super payments.