End of Financial Year Planning for Melbourne Small Businesses

EOFY as a Melbourne Planning Event, Not Just Compliance

Most Melbourne business owners treat June 30 as a compliance deadline, a point at which obligations need to be met before handing everything to the accountant. The businesses that grow strategically in Melbourne's competitive market treat it differently: as the best planning opportunity of the year.

The weeks before and after June 30 are when you have the most clarity on the financial year's performance, the most opportunity to make decisions that affect your tax position, and the most natural moment to set up the new year with the right infrastructure.

Before June 30: Melbourne Tax Planning Actions

Prepay Deductible Expenses

For cash-basis Melbourne businesses, prepaying deductible expenses before June 30 brings the deduction into the current year. Expenses worth considering for Melbourne businesses:

• Business insurance premiums (annual renewal, prepaid for the next 12 months)
• Professional memberships, industry body fees, and licence renewals
• Software subscriptions (switch from monthly to annual billing)
• Business training and professional development (particularly relevant for Melbourne's professional services sector)
• Marketing and advertising commitments

Write Off Bad Debts Before June 30

Melbourne businesses with corporate debtors should review aged receivables in May. Invoices over 90 days with genuine recovery uncertainty should be considered for write-off before June 30. Document the recovery attempts, emails, calls, formal demand letters, before writing off.

In Xero: credit note against the invoice, code to Bad Debts expense, apply to the invoice. A GST adjustment may also be available, your BAS agent manages this.

Equipment Purchases

For the depreciation deduction to apply in 2024–25, the asset must be purchased and installed ready for use by June 30. "On order" doesn't qualify. For Melbourne businesses in trades or allied health with equipment cycles, plan these purchases in April/May rather than scrambling in June.

Superannuation Top-Up

The concessional cap for 2025–26 is $30,000. For Melbourne business owners earning $130k+, topping up super before June 30 at 15% tax is significantly better than leaving that income at the marginal rate. The super fund must receive the contribution before June 30, allow 3–5 business days for processing. Talk to your accountant before acting.

Victorian-Specific Actions

• Payroll tax review: If your Melbourne business's Victorian wages are approaching the $700k annual threshold, review your position and ensure your payroll tax lodgements are correct.
• WorkSafe premium: Ensure your declared remuneration is accurate for WorkSafe purposes, underdeclaration creates a premium shortfall; overdeclaration is avoidable cash tied up unnecessarily.
• Trust distributions: If your Melbourne business operates through a discretionary trust, trust distribution resolutions must be in place before June 30. Your accountant handles this, flag it before the last week of June.

At June 30: Closing Off the Year

• Issue all June invoices. Revenue earned by June 30 should be invoiced by June 30. Delayed invoicing shifts income into the new year, which may or may not be your intention.
• Check all bill dates. Melbourne supplier bills for June expenses should be dated June. An incorrectly dated bill can shift a deduction to the next financial year.
• Reconcile all accounts. Every Melbourne bank account, credit card, and loan account should be fully reconciled as at June 30. This is the foundation for your accountant's year-end work.
• STP finalisation in Xero. For Melbourne businesses with multiple employees across different award classifications, allow time to verify each employee's year-to-date figures are correct before submitting STP finalisation. Deadline: 14 July.

Common Melbourne EOFY Mistakes

• STP finalisation forgotten or delayed: Melbourne employees can't lodge personal tax returns until their income statement is finalised. This creates client relations issues for professional service businesses where staff have complex tax affairs. 14 July deadline is non-negotiable.
• Trust distributions not resolved: A June 30 deadline that catches Melbourne business owners off guard every year. Decisions must be documented before 30 June.
• Super contributions not cleared by June 30: The contribution must arrive in the fund, not just be initiated. Online transfers can take 2–5 days to process. Late processing means it falls in the new financial year.
• Bad debts not reviewed: Melbourne's corporate client base sometimes means invoices that sit in aged receivables for long periods. Review in May, not June, so you have time to make decisions and raise credit notes properly.

After July 1: New Year Setup for Melbourne Businesses

• Update Xero payroll super rate to 12% before processing any July pays
• Check Fair Work Melbourne award rate changes, the annual wage review takes effect 1 July. Update all applicable Modern Award rates in Xero Payroll by the first pay run
• Update Melbourne pricing, July is the natural time to pass on award rate and CPI increases to clients. Send updated fee schedules or price increase notices if needed
• Set your annual budget in Xero, new year, new budget in Budget Manager. Start tracking budget vs actuals from July 1
• Review structure with accountant, any restructuring recommendations from EOFY review should be actioned early in the new financial year