End of financial year checklist for business clients
Before 30 June 2026, finish the stocktake, write off bad debts in writing, check prepayments, buy and install assets under the legislated $20,000 instant asset write-off, pay super you want deducted, and make Division 7A repayments at 8.37%. Then finalise STP by 14 July and lodge any TPAR by 28 August.
A year-end checklist for company, trust and sole trader clients, built around 30 June 2026 (the end of the 2025-26 income year) and the lodgements that follow it. Use it in the June client meeting and again when preparing the year-end workpapers.
How to use it
Work through it with the client before 30 June. Several items only work if the action happens on or before 30 June, so those are grouped first. Items for July and August follow.
Before 30 June
Stock and debtors
Source: ATO bad debts.
Prepayments
Source: ATO deductions for prepaid expenses 2026.
Assets and the instant asset write-off
For 2025-26 the instant asset write-off threshold is $20,000 per asset for small businesses with aggregated turnover under $10 million using the simplified depreciation rules. The asset must cost less than $20,000 and be first used or installed ready for use in the income year. The ATO states the 2025-26 extension (1 July 2025 to 30 June 2026) is law, made by the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025. The ATO also states that the $20,000 threshold, made permanent from 1 July 2026 in the 2026-27 Budget, is now law. (ATO instant asset write-off, ATO new legislation page)
Super contributions
Employer contributions are deductible in the financial year the payment is made. The ATO's example: a contribution paid on 5 July 2026 is deductible in 2026-27, not 2025-26. The small business clearing house closed on 1 July 2026, and Payday Super applies to earnings paid from 1 July 2026. (ATO how to pay super)
Division 7A
The benchmark interest rate is 8.37% for 2025-26 and 8.77% for 2026-27 (30 June balancers). (ATO benchmark rate)
Source: ATO Division 7A loans. The ATO says it is reviewing this page following a recent court decision (Commissioner of Taxation v Bendel [2026] HCA 18), so check the current page.
Trusts
July and August
Sources: ATO STP finalisation, ATO July due dates, ATO TPAR, ATO beneficiary TFN reporting.
Related: BAS preparation checklist.
Questions
Is the $20,000 instant asset write-off law for 2025-26?
Yes. The ATO says the extension to 30 June 2026 was made law by the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025. It applies to businesses with aggregated turnover under $10 million.
What is the Division 7A benchmark rate for 2025-26?
8.37%. The rate for 2026-27 is 8.77%.
When must super be paid to be deductible in 2025-26?
Employer contributions are deductible in the financial year the payment is made, so payments made after 30 June 2026 fall into 2026-27.
When is STP finalisation due?
14 July for arm's length employees. Closely held payees have later dates depending on employer size.
When is the TPAR due?
28 August each year.
Sources
- ATO: Deductions for unrecoverable income (bad debts)
- ATO: Deductions for prepaid expenses 2026
- ATO: Instant asset write-off
- ATO new legislation: $20,000 instant asset write-off
- ATO: How to pay super (quarterly super to 30 June 2026)
- ATO: Division 7A benchmark interest rate
- ATO: Division 7A loans by private companies
- ATO: Trustee resolutions
- ATO: End-of-year finalisation through STP
- ATO: Due dates by month, July
- ATO: Lodge your TPAR
- ATO: Changes to beneficiary TFN reporting for closely held trusts
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