When Does the Financial Year Start and End in Australia?

A Guide to the Australian Financial Year for Small Business Owners

As a business coach working with advanced small businesses, I have seen firsthand how well-managed operations and strategic financial planning set the foundation for sustainable growth. Drawing from years of coaching business owners across various industries, this guide is built on proven strategies that help businesses not only stay compliant but also achieve long-term success.

Managing business finances effectively is more than just meeting tax obligations—it’s about making informed decisions that position a business for expansion, resilience, and profitability. From tracking performance metrics to setting up strong financial habits, the businesses I coach are able to streamline their operations and create scalable growth models.

This guide provides practical advice based on real-world coaching experiences, helping Australian business owners navigate the financial year with confidence. Whether you’re looking to optimise tax planning, improve cash flow management, or set long-term business goals, this guide will support your journey to financial and operational success.

Understanding the financial year cycle, key deadlines, and essential tasks can help businesses stay compliant, plan strategically, and improve overall financial health. This guide is designed to help Australian business owners navigate the financial year with confidence by outlining critical dates, tracking key financial metrics, and providing actionable checklists for each quarter.

When Does the Financial Year Start and End in Australia?

In Australia, the financial year (FY) runs from 1st July to 30th June each year. This period is important for tax reporting, financial planning, and business performance tracking.

Why Does the Australian Financial Year Start in July?

Unlike the calendar year, which runs from January to December, the Australian financial year runs from 1st July to 30th June. This mid-year start dates back to British accounting practices and was implemented to align with agricultural cycles and government budget planning. The timing allows businesses and the government to account for tax and budget allocations without disrupting the busiest part of the economic cycle.

Common Terminology and Acronyms

Understanding key financial year terms is essential for business owners:

• EOFY (End of Financial Year): Refers to the period leading up to June 30 when businesses finalise accounts, report income, and lodge tax returns.
  • Example: “Make sure you complete all deductions before EOFY to maximise tax benefits.”
• FYE25 (Financial Year Ending 2025): Refers to the financial year running from 1st July 2024 to 30th June 2025.
  • Example: “Plan your budget for FYE25 to align with projected growth.”
• FY24-25 (Financial Year 2024-2025): An alternative way to refer to the financial year beginning 1st July 2024 and ending 30th June 2025.
  • Example: “Our revenue projections for FY24-25 indicate a 10% growth.”

The financial year is divided into four quarters. These are the dates for the quarters of the Australian financial year:

• Quarter 1 (Q1): 1st July – 30th September
• Quarter 2 (Q2): 1st October – 31st December
• Quarter 3 (Q3): 1st January – 31st March
• Quarter 4 (Q4): 1st April – 30th June

Each quarter has specific tax and financial reporting deadlines, making it essential for businesses to plan and review financial performance regularly.

Key Dates for Small Business Owners in Australia

Managing business finances effectively means keeping track of critical deadlines. Staying on top of these important dates ensures compliance with tax obligations, avoids penalties, and helps businesses maintain healthy cash flow. By planning ahead, business owners can reduce stress and focus on strategic growth rather than last-minute scrambles. Below is a list of key financial deadlines that every small business owner in Australia should be aware of:

• 28th October – Q1 Business Activity Statement (BAS) due (for most businesses)
• 28th February – Q2 BAS due
• 28th April – Q3 BAS due
• 28th July – Q4 BAS due
• 15th May – Deadline for lodging tax returns (if using a tax agent)
• 21st of each month – Monthly PAYG Withholding reports due (for businesses with employees)
• 25th June – Superannuation guarantee contributions due for Q4
• 30th June – End of Financial Year (EOFY)

7 Key Actions to Make EOFY Easier to Manage

Through coaching small businesses, I’ve observed that those who prepare proactively for the End of Financial Year (EOFY) are in a stronger position to optimise tax outcomes and drive future growth. The following seven actions are based on best practices that successful businesses implement to streamline EOFY processes and strengthen their financial position.

These actions are general recommendations, but every business is unique. As you go through this list, consider how each point applies to your operations and where adjustments may be needed. By taking a structured approach, you can reduce financial stress, ensure compliance, and set the stage for a profitable year ahead.

While these actions are general recommendations, business owners should assess which ones are most relevant to their operations and customise their approach accordingly.

1. Keep Your Records Up to Date – Maintain accurate bookkeeping throughout the year to avoid a last-minute scramble.
2. Review Outstanding Invoices & Debts – Chase unpaid invoices and reconcile outstanding amounts.
3. Assess Your Tax Obligations – Work with an accountant to ensure you’ve met PAYG, GST, and income tax obligations.
4. Maximise Deductions – Ensure you claim all eligible expenses, including small business asset write-offs.
5. Superannuation Payments – Pay employee super on time to claim deductions.
6. Review Business Performance – Compare financial performance with previous years and adjust plans accordingly.
7. Plan for Next Year – Set financial goals, review pricing structures, and improve cash flow management.

Checklist: 5 Key Metrics to Review at the End of Each Quarter

Tracking key financial metrics quarterly helps businesses maintain financial health and strategic growth. Below is a checklist with key metrics, including fields for target values and actual results.

Metric	Target	Actual
Revenue Growth
Gross Profit Margin
Operating Expenses
Net Profit Margin
Customer Retention Rate

By consistently reviewing these metrics, businesses can identify trends, address potential issues early, and adjust strategies for sustained success.

Key Tasks for the Start of Each Quarter

In my experience coaching small businesses, structuring the year with quarterly planning gives business owners better control over their finances and operations. Regular check-ins allow you to identify trends early, make necessary adjustments, and keep teams aligned with strategic goals.

The following tasks are general recommendations, and not every business will need to implement all of them. My advice is to assess which tasks are most relevant and swap out any that don’t align with your current priorities. The key to success is maintaining a proactive approach to planning, operations, and financial management to ensure long-term growth and stability.

 

Quarter 1 (July – September)

1. Team Development – Set performance targets and KPIs for staff. Book check-in for Q3.
2. Cost Measures – Review insurances for vehicles. Compare prices and negotiate with providers.
3. Operational Improvements – Set up an error reporting system for call-backs.
4. Admin Improvements – Review company policies for personal use of company vehicles and property.
5. Client Management – Set up a contact schedule for A-grade clients.

Quarter 2 (October – December)

1. Team Development – Conduct a mid-year team review and address skill gaps.
2. Cost Measures – Review supplier contracts and negotiate better rates.
3. Operational Improvements – Streamline job quoting processes for efficiency.
4. Admin Improvements – Implement automated reminders for overdue invoices.
5. Strategic Planning – Review progress towards annual business goals.

Quarter 3 (January – March)

1. Team Development – Hold performance reviews and plan training needs.
2. Cost Measures – Conduct a stocktake and adjust inventory management.
3. Operational Improvements – Identify efficiency gains in daily workflows.
4. Admin Improvements – Check compliance with updated regulations.
5. Client Management – Gather client feedback to improve service.

Quarter 4 (April – June)

1. Team Development – Plan next year’s staffing and recruitment needs.
2. Cost Measures – Review tax planning strategies for maximising deductions.
3. Operational Improvements – Identify key investments for next year.
4. Admin Improvements – Finalise EOFY records and prepare for tax time.
5. Strategic Planning – Set financial and growth targets for the next financial year.

By following these steps and tracking key metrics, small business owners can ensure they are well-prepared for each financial year and maintain a strong, sustainable business.

At Tenfold we coach businesses across a range of industries, including trades services such as electricians, plumbers, landscapers, HVAC, and other specialised sectors like manufacturing, distribution and IT. If you’d a like a copy of the quarter by quarter tasks for your specific industry sector, please contact our team.