EOFY Made Easy: What Brokers Should Know To Support Their SME Clients
The end of the financial year (EOFY) is one of the most critical periods for small business owners in Australia. It’s a time filled with financial reports, reconciliations, stock takes and tax planning.
While many SMEs may find the process stressful, it’s also an opportunity for brokers to potentially step in and provide more value during the looming tax season.
Brokers can help clients stay compliant and maximise their financial position for the year ahead. This includes possibly increasing business income while reducing the amount of tax clients must pay.
Let’s go through the essential EOFY Australia deadlines, what tasks brokers can consider encouraging their clients to tackle, and how early planning could open doors to new opportunities.
Key EOFY Requirements And Their Deadlines
EOFY isn’t solely about ticking off tax obligations for accounting purposes. It’s a chance to help SMEs better manage their cash flow, stay penalty-free and plan strategically for future growth.
To properly support your clients and their companies, you may want a firmer grasp of the key requirements and their associated deadlines.
BAS Lodging And Payment
A Business Activity Statement (BAS) is a regular report that Australian businesses must submit to the Australian Tax Office (ATO).
It details the GST collected and paid, and other obligations like PAYG (Pay as you go) withholding. Businesses lodge their BAS monthly, quarterly, or annually, depending on their turnover.
It may be helpful for brokers to note key dates and deadlines that the ATO sets. Monthly BAS lodgers must submit their statements by the 21st of the following month. For instance, a June BAS must be lodged and paid by July 21.
Quarterly BAS lodgers, including most SMEs, must lodge by set deadlines. The due date for Q4 (April–June) of the Australian financial year is July 28.
Brokers may want to consider advising their clients to stay ahead of BAS lodgement. Consider encouraging them to automate their bookkeeping processes or use accounting software directly linked to the Australian Taxation Office, which will help eliminate manual errors.
Early preparation for end-of-fiscal-year requirements can allow clients and their companies to better manage cash sales, especially if large GST payments are due.
Quarterly Super Payments For Eligible Employees
Employers must meet their obligations to pay superannuation contributions for eligible employees each quarter. The Q4 superannuation payment, covering the period from April to June, must reach employee super funds by July 28.
Failing to meet this deadline could result in penalties, including the Superannuation Guarantee Charge (SGC), which is often more costly than the original contribution.
Brokers can assist their SME clients by encouraging them to make super payments early. Ideally, this should be at least a few business days before the due date to account for bank processing times and clearing house delays.
Helping clients implement automatic super payment systems or scheduled bank transfers can significantly reduce the risk of late payments.
Tax Returns
Claiming tax returns is another primary focus during EOFY in Australia. SME clients must lodge their income tax returns to the ATO, with deadlines typically dependent on their lodgement method.
Businesses that claim their own returns must submit requirements by October 31, while those using a registered tax agent can often extend their deadline to May 15 of the following year, provided they are registered with the agent by October 31.
Brokers can proactively ask clients whether they intend to self-lodge or use a tax agent. If they haven’t engaged an agent yet, it’s worth reminding them to do so early.
Working with an agent or other qualified professional can potentially extend deadlines, reduce errors and improve the quality of the tax return.
Stocktake Requirements (If Applicable)
For businesses that hold inventory, a stocktake at EOFY is mandatory unless they meet certain small business exemptions. Generally, businesses must perform a stocktake if the difference between their opening and closing stock values is more than $5,000.
Stocktake involves counting, valuing and reconciling inventory. Brokers may want to highlight to their clients that an accurate stocktake is not just about compliance.
It can also reveal valuable insights, such as slow-moving items or dead stock, freeing up cash for better investments. Advising clients to integrate inventory management software ahead of EOFY in Australia can significantly reduce the administrative burden of manual stock counts.
Payroll Reconciliation And Finalisation
Single Touch Payroll (STP) reporting obligations mean that businesses must finalise employee wage records by July 14. Employers must ensure that all payroll information is accurate, complete and marked “Tax Ready” in the employees’ myGov accounts.
A broker can help their clients by asking them to start payroll reconciliations early. This includes cross-checking gross wages, tax withheld and super contributions. Implementing a review process will typically allow enough time to correct any discrepancies.
By encouraging clients to use cloud-based payroll systems, brokers can help them maintain compliance while possibly reducing administrative stress at year-end.
Review Of Deductible Expenses
The end of the financial year can bring opportunities to claim legitimate tax deductions and optimise tax outcomes. Benefits like deducting business expenses, travel expenses and home office expenses can help a small business save money.
Brokers can play a key advisory role by reminding clients to review all eligible deductible expenses, such as business travel, professional fees, work-related technology purchases and motor vehicle expenses.
Clients may also benefit from a reminder to maintain meticulous records for all tax deductions claimed. This includes keeping tax invoices, bank statements and written evidence to satisfy ATO audit requirements, if needed.
Digital receipt, storage apps and accounting systems that categorise expenses can make this process significantly smoother and reduce audit risks.
How Brokers Can Best Support Their SME Clients
Beyond simple compliance, EOFY in Australia is an opportunity for brokers to strengthen their advisory role and deepen client relationships past calculations during tax time.
Brokers who support their SME clients during this period can potentially help them build up financial resilience and plan for success.
Advise Them To Create Up-To-Date P&L Statements
Profit and Loss statements (P&L) are financial records that provide a quick preview of a business’s financial performance, showing income, expenses and net profit over a period. During EOFY in Australia, brokers may wish to encourage all clients to prepare a new, accurate P&L statement.
Having an up-to-date P&L statement enables business owners to make informed decisions before lodging tax returns, helps their accountants spot overlooked deductions, and positions them better if they want to apply for new finance facilities.
Brokers can also use updated P&L financial statements to discuss funding opportunities or help clients restructure their finances based on actual business performance.
Finalise Any Loans In Time
Many SME clients look to purchase tools, equipment or other major assets right before the end of the financial year. Many of these purchases at the end of the financial year are for tax purposes and deductions.
During this period, brokers could encourage clients to finalise any pending loans or finance applications before June 30 to maximise deductions such as asset depreciation or loan interest.
Completing finance agreements by EOFY allows businesses to include eligible purchases in this year’s tax return rather than waiting an extra 12 months.
Brokers can assist by expediting loan settlements, completing paperwork without delays, and helping clients navigate promotions or sales during EOFY in Australia that might fit into their financial strategy.
Lumi offers many small business loans that can help raise EOFY sales while providing opportunities for tax benefits and deductions.
Look Into Financing Options To Cover Potential Tax Debts
Tax time can reveal cash flow gaps that SMEs didn’t anticipate. If not appropriately managed, large tax liabilities may severely disrupt daily operations.
Brokers have a critical role to play in offering finance solutions like tax debt loans, invoice financing and working capital facilities tailored to help businesses manage their tax obligations without strangling growth.
By offering flexible, fast finance options, brokers may be able to help their clients avoid defaulting on tax payments, which can trigger further penalties and financial strain.
Discussing finance early may also allow SMEs to spread repayments in a manageable way rather than scrambling for solutions after the debt falls due.
Contact Registered Tax Agents In Your Network For Any News
EOFY rules and tax laws are constantly evolving. It may benefit brokers to maintain close contact with registered tax agents to stay informed of any changes in deductions, reporting obligations, grants and new compliance standards.
By proactively tapping into up-to-date knowledge, brokers can alert clients to opportunities or potential risks before they become problems.
Calling on professional help can also enhance a broker’s credibility and help you build a robust referral network for future cross-business opportunities.
Discuss Financial Plans For The Next Financial Year
EOFY offers the perfect opportunity to shift the conversation from short-term compliance to long-term planning. Brokers may want to meet with clients to discuss business goals for the new financial year, anticipated funding needs and strategies for improving cash inflows.
Whether clients plan to expand operations when the next financial year begins, invest in new technology, expand the business structure, or hire more staff, brokers can help create a financial roadmap supporting these ambitions.
Setting up annual finance reviews and checking in mid-year can help businesses stay on track for sustainable growth.
Conclusion
EOFY in Australia doesn’t have to be a challenging time for SMEs or brokers supporting them. By preparing early, understanding compliance deadlines and offering strategic financial advice, brokers can help their clients thrive.
Whether it’s facilitating timely lodgements, uncovering funding options or guiding future financial plans, the end of financial year is a smart time for brokers to prove their value and strengthen client loyalty.
If your SME clients need fast, flexible funding this EOFY, Lumi’s small business loans can help.
With quick applications, personalised support and funding solutions tailored for Australian businesses, Lumi can make it easier for brokers and their clients to keep moving forward.
