What is end of financial year (EOFY)?
For tax reasons, a 12-month period is known as the financial year. The Australian financial year runs from July 1st to June 30th of the following year. Small business owners close their books at the end of the fiscal year and start completing the last of their accounting and tax preparation paperwork. Individuals and corporations file their tax returns to the Australian Taxation Office (ATO) between July 1 and October 31. The ATO uses the information to calculate your tax liability.
When is end of financial year (EOFY)?
The end of the financial year (EOFY) in Australia is on 30 June.This marks the end of the fiscal year in Australia.
Why is end of financial year (EOFY) important?
The end of the financial year (EOFY) is important in Australia for several reasons:
- Taxation: The end of the financial year marks the deadline for individuals and businesses to lodge their tax returns with the Australian Taxation Office (ATO). It is an opportunity for taxpayers to review their financial affairs, claim deductions, and potentially reduce their tax liability
- Financial reporting: The end of the financial year is also when businesses are required to prepare and submit their financial statements for the year to regulatory authorities, shareholders, and other stakeholders. This process is crucial for assessing the financial performance and position of a company.
- Planning and budgeting: The EOFY is a time for businesses and individuals to review their financial goals, assess their performance against targets, and make plans for the upcoming financial year. It is an opportunity to set budgets, forecast future revenue and expenses, and make strategic decisions for the future.
- Compliance: The end of the financial year is an important deadline for businesses to comply with various legal and regulatory requirements, such as making superannuation contributions, filing annual reports, and meeting deadlines for other financial obligations.
Overall, the EOFY is a critical period for financial management, planning, reporting, and compliance in Australia.
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