If you’ve seen this acronym floating around or popping up in your mates’ lexicons, and you’re wondering what the heck it is and how it’s pronounced, no shame. We’ve got you.
EOFY stands for End of Financial Year, and people say it in all different kinds of ways. Some like to say ee-off-ee, which is a bit of fun! Others like to spell it out, E.O.F.Y. The choice is yours, but make sure you have a good time while doing it. That’s what finances are all about.
Now to the nitty gritty of what this actually means. If you’re a sole trader, there’s quite a lot you need to do when this time of year creeps up, as it inevitably does.
When is the EOFY?
In Australia, the financial year ends on the 30th of June and the new one begins the next day, on July 1st.
📖 For more info on why the EOFY is the EOFY, check out our quick explainer.
Why is the EOFY significant?
As the financial year comes to a close, businesses begin to do a whole lot of admin in preparation for tax time. This might look like taking stock of their products, checking all their financial records for the past 12 months are up to scratch, and gathering any necessary receipts or bits and pieces to present to the ATO in their tax return.
You’ll probably see a lot of flashy EOFY sales creeping into your inbox or plastered on the side of bus stands during this time, and it’s usually because businesses are trying to shift stock and hit targets by bringing in as much revenue as possible before the ‘financial clock’ strikes midnight.
What do sole traders need to do for the EOFY?
There are a few things you’ll need to have prepped and ready when June 30th rolls around:
- A record of all of your taxable income.
- If you’ve earned a salary income through a part-time or full-time position as well as income through your sole-trader business, the ATO wants (in fact, needs) to know about it.
- The tax deductions you’re claiming.
- If you’ve paid for things throughout the past year that were business related expenses, you can claim these at tax time. Have all your receipts handy as proof, and you can claim these costs to lower your taxable income.
- Your final Business Activity Statement (BAS) for the financial year.
- If you’re GST registered, you may also have a BAS due at the same time as your tax return. Most businesses lodge their statement every quarter, and guess what? June 30th is the end of the fourth quarter. Timing is a wonderful thing.
Prepare for the EOFY with Hnry
If sorting your own tax stuff sounds overwhelming, we completely understand. In fact, that’s why we exist – to make tax time simple for all sole traders.
Hnry is an award-winning sole trader accounting service. For just 1% +GST of your self-employed income, capped at $1,500 +GST a year, we will automatically calculate and deduct your:
If you’re a Hnry customer, when the EOFY arrives:
- Your taxes and levies will have already been paid
- You confirm your details are correct, and your expense claims are up to date, then
- We’ll prepare your tax return, and once it’s ready, lodge it for you.
No huge, unexpected tax bill, no stack of paperwork, no tax calculations – Hnry does it all for you.
Get your tax ducks (and deductions!) in a row by joining Hnry today.
P.S. For extra brownie points, check out our guide to hit the ground running in the new financial year.
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