PLAN NOW FOR THE END OF FINANCIAL YEAR

With 30 June fast approaching, start planning now for the EOFY

Bad Debts

• Review the accounts receivable listing and recognise any genuine bad debts to be written off before 30 June 2026

Stock Take & Work in Progress (WIP)

• Undertake your stock stake at the value of either cost, market selling value or replacement value at 30 June 2026.
• Write of any obsolete stock before 30 June 2026.
• Review work in progress at 30 June 2026.

Consider New Plant & Equipment Purchases – Instant asset write-off (<$20k)

• The instant asset write-off threshold is $20,000 for the 2025-26 year for businesses that have aggregated annual turnover of less than $10 million. Key things to remember include:
• The full cost of the asset must be less than $20,000 after taking off GST credits that can be claimed
• To claim the deduction in the 2026 tax return, the asset normally needs to be first used or installed, ready for use for a taxable purpose between 1 July 2025 and 30 June 2026.
• New and second-hand assets can qualify, subject to some specific exclusions and limits.
• If you claimed an immediate deduction for an assets cost under the instant asset write-off rules in an earlier income year, you can also immediately deduct the first improvement cost for that asset if it is incurred between 1 July 2025 and 30 June 2026, and is less than $20,000
• The $20,000 limit applies on per-asset basis, so you can instantly write off multiple assets, as long as the cost of each asset is less than the limit.

Review Plant & Equipment for obsolete assets

• Review your fixed asset register to identify any obsolete plant & equipment to scrap prior to 30 June 2026.

Pay June Quarter Employee superannuation contributions now

• Pay all June quarter super contributions now to claim a tax deduction in the 2026 year.

Prepayments

• For businesses with aggregated turnover of less than $50 million, consider prepaying deductible expenses for up to 12 months to claim the tax deduction in the 2026 financial year.

Directors’ fees and employee bonuses

• Consider any expected directors’ fees and employees bonuses may be deductible for the 2026 tax year if the taxpayer/employer is ‘definitely committed’ to the payment of a quantified amount by 30 June 2026, even if the fee or bonus is paid to the employee or director after 30 June 2026.
• The employer would generally be definitely committed to the payment by year end if the directors pass a properly authorised resolution to make the payment by year end. The employer should also notify the employee of their entitlement to the payment or bonus before year end.

Conduct an Internal Accounts Review & commence EOFY Reconciliations

• Bank Reconciliations – Reconcile all business bank accounts, credit cards, loan accounts and petty cash at 30 June 2026
• BAS Reconciliations – Conduct an internal review of total sales (“G1”) reported in BAS’s on an annual basis (1/7/25 to 30/6/26) and ensure it reconciles to the Xero/Myob sales general ledger. Any adjustments may be required before lodging the April – June 2026 BAS. The ATO are performing similar reconciliations, and any discrepancies could trigger a review.
• Profit & Loss Review- Review profit and loss accounts to ensure appropriate narrations describing the nature of expense has been posted. This is important for when Maroo prepare the year end accounts.
• Plant & Equipment Purchases – Please review the profit and loss general ledger to ensure all ‘capital’ items have been posted to the respective asset account and have a clear narration describing the asset.
• Balance Sheet Review – Supporting Documentation – Review Balance Sheet accounts as at 30 June 2026 and ensure ALL accounts reconcile to supporting documentation and are fully substantiated. Where necessary, compile the supporting documentation, such as bank statements, loan statements, asset and investment purchases, chattel mortgage loan documents , etc.
• Annual Wages Reconciliations – Ensure an annual wages and superannuation reconciliation is prepared between the payroll reports, single touch payroll, BAS reporting and the profit and loss.
• Payroll Tax Reconciliations – Ensure annual Payroll Tax summary reconciles to general ledger and payroll reports and that you have factored in any contractor payment implications.
• Inter-entity Loan Reconciliations – Review and ensure inter-entity loan accounts reconcile to each respective entity’s Balance Sheet at 30 June 2026. This includes the debtors & creditors listing of each entity.
• Clearing & Suspense Accounts – Review transactions allocated to any clearing accounts to ensure transactions allocated are clearing on a timely basis and the accounts are reconciled at 30 June 2026. For a temporary suspense account, review and classify any transactions allocated to suspense correctly in the P&L or Balance Sheet, to ensure the suspense account balance is NIL as 30 June 2026.
• Travel: Domestic & Overseas – Ensure that documentary evidence of employees’ business travel expenses (including accommodation and meals) is maintained if they are away from their ordinary residence for one night or more. In addition, if the travel is for more than 5 nights (whether domestic or international), the employee must keep a travel diary outlining:
  • • The nature of the activity
    • The day and approximate time it began
    • How long it lasted, and
    • Where the employee engaged in it

REMINDER: PAYDAY SUPER STARTS 1 JULY 2026

Lastly, a final reminder that payday super starts 1 July 2026 which requires employers to pay employees’ superannuation at the same time that they pay their wages, rather than the current cycle of once every quarter. As the changes commence from 1 July 2026, it is time to update your payroll systems to align super payments with each pay run now.

What to do to prepare now

• • Review the Payday super changes to ensure you understand the changes.
  • Review cash flow so you can fund super payments with each pay cycle rather than quarterly.
  • Review your business and payroll processes so you’re ready to pay super for each payday.
  • Review all employee details to ensure their personal details, superfund information, account numbers, etc are accurate to avoid lodgement errors and returned payments.
  • Review your payroll settings to ensure Qualifying Earnings are accurately assigned to payroll categories.
  • Review your super payment process and clearing house arrangements. If currently using the Small Business Superannuation Clearing House, transition to another payment provider and test the payment method prior to 30 June 2026. Leading software providers such as Xero, MYOB and Reckon all offer built in super payment facilities to their software.

Please do not hesitate to contact your Maroo Advisory adviser if you have any questions relating to planning for the EOFY or the Payday Super changes.