The end of the financial year is an important time for Australian businesses to review their finances, complete tax and reporting obligations and prepare for the year ahead.

EOFY is more than simply lodging a tax return. It is an opportunity to make sure business records are accurate, outstanding invoices and bills are accounted for, assets are properly recorded, tax deductions are supported, and the business has a clear understanding of its financial position.

The Australian Government recommends businesses use EOFY to organise financial records, prepare profit and loss information, review debtors and creditors, check assets, consider eligible deductions and concessions, complete relevant tax and reporting obligations and review business performance for the coming year.

For business owners, good EOFY preparation can also provide valuable insight into profitability, cash flow and the decisions that may need to be made in the new financial year.

Capital gains tax is becoming an increasingly important consideration for Australian investors as major changes to the tax treatment of capital gains are introduced from 1 July 2027.

The reforms will replace the current 50 per cent CGT discount for individuals, trusts and partnerships with a new system based on cost base indexation, alongside a 30 per cent minimum tax rate on real capital gains. The changes are intended to ensure that inflation is taken into account when calculating taxable gains.

The changes are already influencing how some investors think about property, shares and other growth assets. Investment decisions that were previously assessed mainly on expected returns may increasingly need to consider after-tax returns, holding periods, inflation, and the timing of future capital gains.

For Australians building wealth over many years, understanding the changes can help investors make more informed decisions rather than reacting to headlines or making investment choices based solely on tax.

Tax can be one of the more complicated parts of running a small business in Australia. Business owners may be focused on customers, sales, employees, and day-to-day operations while tax obligations continue to accumulate in the background.

Many tax mistakes are not intentional. They can happen because of poor record keeping, mixing personal and business expenses, misunderstanding deductions, incorrect GST treatment, missed deadlines, or simply not setting enough money aside to meet tax obligations.

The Australian Taxation Office (ATO) has identified common problems among small businesses including bookkeeping errors, missing supporting documentation, incorrect apportionment of expenses and claims for non-deductible expenses. Good systems, accurate records, and professional advice can help businesses reduce these risks.
Understanding the most common mistakes can help Australian small business owners stay organised, improve cash flow and avoid unnecessary tax problems.