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EOFY COUNTDOWN – 5 SIMPLE WAYS TO ENSURE YOUR BUSINESS IS READY
Yes, it’s that time of year once again – June 30 is approaching fast. And as much as we know it’s coming, we’re often not as prepared as we’d like to be. In our experience, we see a high percentage of business owners start to panic at the beginning of June - their minds racing with all the things that need to be considered. Yet this sort of thinking doesn’t get things done or help you to be better prepared. So, what’s our recommendation? Make yourself a checklist either on paper, excel or in another software package, and systematically work through it. This will help you relieve your EOFY stress and see you fully prepared. And to support you to create your checklist, we’ve put together the five most important factors every business should consider when approaching the new financial year.

1. SUPERANNUATION

Super is increasing to 12% in the coming 25/26 Financial year. Most bookkeeping software packages will account for this but be aware so you can check your software is updating correctly and allocating the correct amount of super in the first payroll of the new financial year.

You must apply this to the first payroll paid after 30 June 2025, even if the payroll contains hours worked in June. Be aware! It is illegal to bring forward a ‘pay date’ so that wages are paid on 30 June if it is out of sync with your regular payroll routine. Changing the date could potentially cause employees to ‘owe’ extra tax for the payroll year. Several factors would contribute to this, such as tax bracket creep or receiving an ‘extra’ pay in this current financial year, so please don’t be tempted to alter your pay cycle to save a small amount in superannuation.

And remember, superannuation that you pay on behalf of your employees is a tax deduction in the year you pay it to the employees’ super funds. If you want to claim your superannuation guarantee payments in the 2025 financial year, we recommend you process and pay your superannuation liabilities before 15th June. This should ensure you can claim the super payments in your 2025 financial year tax return.

2. AWARD RATES

Award rates will increase on July 1, as usual, and will apply to the first full pay run after June 30. Unlike superannuation, if the first pay run in July includes payment for days worked in June, that pay run will be at the old 2025 rates. The increases to award rates will apply to the following pay run that will include July days only.

Check in with your Award to ensure you understand all the changes moving forward into the new financial year.

We totally understand how it could be confusing, being that the rules for increased Superannuation are different, so if you are in any doubt at all, contact a payroll professional to ensure your compliance. Susan at WestBAS is just a call away!

3. AWARD LEVELS AND PAY RATES

Ahead of the new financial year, we would recommend you review employment contracts and consult your award, in relation to employees moving through the different award levels. Employees should gain enough experience throughout the year to advance through the levels. For example, it is expected that after 6-12 months a Level 1 employee will move to Level 2 through their ‘on the job’ experience.

Being proactive in this area protects the business from compliance risks and promotes a fair, transparent workplace culture. With proper planning, businesses can align with changing Award conditions and confidently enter the new financial year.

Employers should also consider if any roles have evolved throughout the past year. An employee who has taken on more complex duties or supervisory responsibilities, for instance, may now fall under a higher Award level. Ensuring accurate classification not only meets legal obligations but also supports employee engagement and retention, as workers feel recognised and acknowledged.

4. CASUAL EMPLOYEES

As of 1st July 2025  most casuals will be under the new Employee Choice Pathway framework that was officially refined in 2024.

This means employers need to consult the new ‘Definition of Casual Employees’ to ensure employees can be classed as ‘casual’. That is, a casual employee must be entitled to casual loading, as per your industry Award, and not be given a firm advance commitment to ongoing work.

The Employee Choice Pathway means that casual employees can request a move towards permanent employment, if they meet the criteria. Check the following link to find out more:

https://www.fairwork.gov.au/about-us/workplace-laws/legislation-changes/closing-loopholes/casual-employment-changes/casual-conversion 

The lead up to 30th June and the new financial year is a great time to check in with your casual employees, as well as your obligations as an employer.

5. GET YOUR BOOKKEEPING UP TO DATE

Do some debt collecting for any outstanding sales invoices.

If uncollectable, consider writing off as a bad debt before 30th June. There is a specific way to do this, so give us a call.

Set budgets for the next financial year, as well as review budgets vs actuals for the last financial year. (Just FYI - reviewing budget vs actuals is something that should be done regularly – we recommend every 3 months as a minimum.)

Review expenses - especially direct debits for subscriptions that may no longer be required.

Do a stock take at 30th June and make relevant stock adjustments in your accounting software.

Reconcile all accounts – including credit cards and loan agreements.

Having your books up to date at 30th June makes the job of your accountant easier for tax returns and allows you to make informed decisions for growth. 

We hope this information has helped you to create your checklist, but if you’re looking for more information or support, this government site has a great checklist for businesses:

https://business.gov.au/finance/yearly-financial-tasks/end-of-financial-year-checklist

….and of course, at WestBAS we’re here and ready to chat should you have any questions or doubts around your bookkeeping or general compliance with awards and payroll.

Book your strategy session.