EOFY checklist for businesses: Planning for tax season and the new financial year
The end of one financial year and the start of another is a crucial time for businesses, particularly when it comes to the meeting tax requirements and understanding any new compliance issues. Our EOFY checklist covers the key changes and financial obligations that could affect your business in FY2026–27. From Payday Super to late payments, here are the steps you can take now to protect cash flow and start the new financial year strong.
- Before 30 June, businesses should review upcoming obligations, expected inflows and any working capital gaps heading into the new financial year.
- Payday Super starts on 1 July 2026, requiring employers to pay super with every pay run and plan for more frequent cash outflows.
- Late payments are increasing, which means businesses may need to fund EOFY obligations before customer invoices are paid.
- The instant asset write-off is set to become permanent, giving businesses more confidence to plan eligible asset purchases.
- EOFY is an opportunity to identify potential cash flow challenges before they affect your business.
Australian businesses are heading into EOFY facing a sustained three-way squeeze on cash flow. Interest rates remain elevated, increasing the cost of borrowing. Operating expenses continue to rise and late payments are at a six-year high, while softer demand is making it harder for businesses to pass on costs to customers.
At the same time, a number of regulatory and economic challenges are adding further pressure. The introduction of Payday Super from 1 July 2026 will require employers to fund superannuation obligations with every pay run. For many businesses, that means managing tax, super, and supplier obligations – all while waiting longer to be paid by customers.
In our EOFY checklist for businesses, we break down five key issues Australian businesses should have on their radar, and the practical steps you can take to protect cash flow and start the new financial year with confidence.
From 1 July 2026, Australian employers will need to pay superannuation guarantee (SG) contributions at the same time they pay salary and wages – known as “Payday Super” – rather than quarterly.
Contributions must reach an employee’s super fund within seven business days of payday, whether the business pays weekly, fortnightly or monthly. Late or missed payments may trigger the redesigned Super Guarantee Charge (SGC), with penalties and interest applying.
Moving from four super payments a year to one per pay run means cash leaves the business more frequently, with less time between outgoings – particularly for businesses that pay weekly or fortnightly. Coupled with last year’s increase to the Super Guarantee to 12%, these changes are likely to increase pressure on working capital for Australian SMEs.
Your EOFY checklist
Forecast the cash flow impact before July 2026: Moving from quarterly to per-pay-run super payments removes a short-term cash flow buffer many businesses have relied on.
Prepare for July 2026 payroll: The final April–June quarterly SG payment and the first Payday Super payments may fall close together.
Confirm your SG rate is correct: The Super Guarantee has been 12% since 1 July 2025, so check your payroll system is calculating contributions correctly before Payday Super begins, to reduce the risk of errors compounding quicker.
Consider cash flow support: Debtor finance may help businesses manage more frequent super payments by unlocking cash tied up in unpaid invoices.
The $20,000 instant asset write-off is set to become a permanent feature of the tax system, rather than being extended year-by-year through Federal Budget announcements*.
The measure allows eligible small businesses with aggregated annual turnover of less than $10 million to immediately deduct the business portion of eligible assets that cost less than $20,000, provided the asset is first used or installed ready for use in the relevant income year.
The $20,000 threshold applies on a per-asset basis, meaning businesses may be able to instantly write off multiple eligible assets.
Your EOFY checklist
Plan asset purchases with more certainty: Businesses can make investment decisions without waiting for the next Budget to confirm whether the measure will continue.
Think strategically about timing: To claim the deduction, the asset generally needs to be installed and ready for use before the end of the income year.
Explore trade finance: Trade finance could help businesses invest in equipment, vehicles or technology while preserving working capital.
*Note: The 2025–26 extension is law, but the measure to make the $20,000 threshold permanent from 1 July 2027 has been announced in the 2026–27 Federal Budget.
The temporary fuel excise relief announced at the end of March 2026 is scheduled to end on 30 June 2026. The measure was introduced to offset the spike in the price of fuel as a result of the conflict in Iran. Petrol and diesel excise was reduced from 52.6 cents to 20.6 cents per litre, and temporarily reduced the heavy vehicle road user charge to zero for three months.
With ongoing conflict around the Strait of Hormuz contributing to fuel price uncertainty, the scheduled end of fuel excise relief could add further pressure from 1 July. If relief is not extended, businesses that rely heavily on transport, logistics or vehicle fleets may face higher fuel-related operating costs.
Transport and logistics operators, construction companies, agricultural businesses and field service providers are likely to feel the greatest impact. However, higher fuel costs can also flow through supply chains, increasing costs across many industries. Even businesses without large transport requirements should consider the potential impact on supplier costs, margins and cash flow
Your EOFY checklist
Update your cost forecasts: Factor the potential increase in fuel expenses into your FY2026–27 operating budget.
Review your margins and pricing: Understand how higher transport costs could affect profitability, especially if fuel is a major input.
Check your contracts: Review customer and supplier agreements to see whether increased fuel costs can be passed on.
Late payments are at a six-year high, according to CreditorWatch’s latest Business Risk Index, increasing cash flow pressure across Australian businesses. The squeeze on the cash conversion cycle is most acute in sectors such as hospitality, construction, transport and manufacturing.
The CreditorWatch report notes that more invoices are moving beyond 60 days overdue, with payment stress concentrated in sectors central to household spending, supply chains and small business employment.
Late payments can be especially difficult at EOFY, when many businesses are trying to collect what they’re owed while conserving cash. A business may owe tax on revenue from invoices issued before 30 June, even if those invoices have not yet been paid. In practical terms, that can mean funding EOFY obligations with cash that is still sitting in a customer’s account.
Your EOFY checklist
Get ahead of receivables: Follow up overdue invoices now, confirm expected payment dates and prioritise customers with larger outstanding balances.
Strengthen payment terms: Before entering FY2026–27, review credit terms, deposit requirements and late-payment processes.
Build a cash flow buffer: If late payments are widening the gap between revenue earned and cash received, debtor finance may help unlock working capital tied up in unpaid invoices.
At the same time as late payments are rising, the ATO is cracking down on tax debt collection. For SMEs, that means unpaid tax obligations are becoming harder to defer or ignore, particularly as the ATO increases enforcement activity after several years of more flexible post-pandemic arrangements.
CreditorWatch data shows tax-debt pressure remains concentrated among smaller and less-structured businesses, with sole traders accounting for 54% of businesses with ATO tax debt defaults greater than $100,000.
EOFY is a good time to review your tax position, identify any unpaid obligations and speak to your accountant or tax adviser early if cash flow is making it difficult to pay on time.
Your EOFY checklist
Know what you owe: Review outstanding BAS, PAYG, income tax and super obligations before 30 June.
Act early: If you can’t pay on time, speak to your accountant or contact the ATO before the debt escalates.
Avoid using tax as working capital: Relying on unpaid tax to manage cash flow can create bigger problems later.
EOFY isn't just about meeting compliance obligations – it's an opportunity to identify potential cash flow challenges and get on top of them before they affect your business.
From Payday Super and ATO tax debt to rising operating costs and longer payment times, many of the challenges that will affect Australian businesses in FY2026–27 have one thing in common: they place greater pressure on working capital.
Taking the time to review your cash flow position and address potential funding gaps now can help you enter the new financial year strong.
Octet’s working capital solutions can help businesses unlock funds tied up in unpaid invoices, manage supplier payments and meet upcoming obligations without putting unnecessary pressure on day-to-day cash flow.
Whether you’re preparing for EOFY, managing seasonal pressure or planning for growth, Octet can help you access the right funding solution for your business.
Talk to our working capital specialists today about how our funding solutions can help your business navigate the end of financial and start 2026/27 with a strong cash flow position.
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Disclaimer: The above article content and comments are our views and should not be construed as advice. You should act using your own information and judgment. Although information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgment as at the date of publication and are subject to change without notice.