What Is the Australian Financial Year and When Does It End?

Most countries align their financial and calendar years. Australia does not. The Australian financial year runs from 1 July through to 30 June the following year, and this single quirk shapes nearly every aspect of how individuals, businesses, and governments manage money across the country.

Whether you are a salaried employee tracking when your tax return opens, a small business owner reconciling your accounts, or someone new to Australia trying to make sense of it all, understanding how the financial year works saves you time, money, and more than a little confusion.

 
Australian Financial Year Dates Explained

The current Australian financial year runs from 1 July 2026 to 30 June 2027. It is commonly referred to as FY2027, or FY26-27, with the naming convention reflecting the calendar year in which the year ends.

The year that follows, covering 1 July 2027 to 30 June 2028, will be known as FY2028 or FY27-28. The pattern is consistent and has been in place for well over a century.

Here is a quick reference for the most commonly asked dates:
 

Date	Event	Who it affects
1 July 2026	Start of FY2026-27	Everyone
30 June 2027	End of FY2026-27 (EOFY)	Everyone
1 July 2027	Lodgement opens for FY2026-27 tax returns	Individuals and businesses
14 July 2027	Deadline for employers to finalise income statements via STP	Employers
31 October 2027	Deadline for self-lodgers to submit their individual tax return	Individuals (self-lodging)
15 May 2028	Extended deadline for clients of registered tax agents	H&R Block clients

One important distinction: the financial year and the tax year are effectively the same thing in Australia. Unlike some other countries, there is no separation between when income is earned and the period for which it is reported.

 
Why Does Australia's Financial Year Run from July to June?

The July to June cycle dates to the colonial era, when Australia's financial calendar was modelled on practices brought from Britain. The British government at the time operated on an April to March fiscal year, and colonial administrators adapted this to local conditions, shifting the cycle to align with the Southern Hemisphere's seasons and agricultural patterns.

By the time federation occurred in 1901, the July to June financial year was already deeply embedded in government administration and business practice. Changing it now would require a monumental overhaul of everything from tax legislation to superannuation rules to government budget timing, which is why the question of whether Australia should align with the calendar year comes up periodically but goes nowhere.

For practical purposes, the only real inconvenience is remembering that when someone says 'this financial year' in March, they mean the period that started the previous July, not the period that started in January.

 
Key EOFY Deadlines to Know

The end of the financial year on 30 June is not just a date on the calendar. It is the point after which most tax obligations crystallise, lodgement windows open, and a series of compliance deadlines begin to run. Missing the right ones carries real consequences.

 
Individual Tax Return Deadlines

Lodgement opens from 1 July each year, and there is no reason to wait. H&R Block has the capacity and the staff to handle appointments from the first week of July, and the sooner you come in, the sooner you know exactly where you stand. Our consultants work through your documents, identify every deduction you are entitled to, and lodge your return on the day.

The standard deadline for individuals lodging without a professional is 31 October. After that date, Failure to Lodge penalties apply at $330 per 28-day period, capped at $1,650. Clients who register with H&R Block before 31 October access an extended lodgement program that pushes the deadline to 15 May the following year, but there is no reason to leave it that long. Come in when it suits you, from 1 July onwards, and we will take it from there.

 
Employer Obligations Around EOFY

Employers using Single Touch Payroll must finalise their employees' income statements by 14 July each year. This is what allows employees to see their year-to-date earnings and tax withheld in their records, and it is a necessary step before an accurate tax return can be lodged.

Super guarantee contributions for the April to June 2026 quarter are due by 28 July. Late payment of superannuation attracts the Super Guarantee Charge, which is non-deductible and carries additional penalties beyond the missed contribution amount. From 1 July 2026, employers will be required to pay super contributions within 7 business days of the payday.

 
Business and BAS Deadlines

Businesses registered for GST have a quarterly Business Activity Statement due on 28 October, covering the July to September period. Monthly lodgers face a 21 July deadline for June activity.

The Fringe Benefits Tax year runs separately from the income tax year, covering 1 April to 31 March, with the FBT return due by 21 May for paper lodgements and 25 June if lodging electronically through a tax agent.

 
How EOFY Affects Employees in Australia

For most salaried employees, EOFY is relatively straightforward, but it is not without its quirks. A few things are worth knowing before 30 June arrives.

Your employer deducts PAYG withholding from each pay throughout the year based on an estimate of your annual income. If your actual income, deductions, and personal circumstances result in a different tax liability than estimated, the difference shows up in your tax return as either a refund or an amount owing. Many employees are surprised to find they owe money rather than receive a refund, usually because they have taken on a second job, received a bonus, or changed their tax-free threshold declaration part way through the year.

If you salary package through your employer, many benefits reset on 1 April rather than 1 July because they operate on the FBT year rather than the income tax year. This is a common source of confusion for employees who assume all workplace benefit cycles align with the financial year.

Casual and seasonal workers often have irregular income across the year, which can lead to higher withholding than necessary or, if they have not claimed the tax-free threshold on their primary job, potentially over-paying during the year. A tax return at EOFY is the mechanism for correcting this.

 
What Changes at the Start of a New Financial Year?

The first of July is not just the start of a new reporting period. It is also when a range of tax rates, thresholds, and obligations are updated. Knowing what changes matters particularly for budgeting, payroll, and understanding what deductions apply from which date.

For the 2026-27 financial year, the income tax rates that now apply are: nil on the first $18,200, 15 per cent on income from $18,201 to $45,000, 30 per cent on income from $45,001 to $135,000, 37 per cent on income from $135,001 to $190,000, and 45 per cent on income above $190,000. These reflect the Stage 3 changes that took effect from 1 July 2024.

The Medicare Levy of 2 per cent applies on top of income tax for most taxpayers. The Medicare Levy Surcharge, an additional 1 to 1.5 per cent, applies to higher-income individuals who do not hold private hospital insurance.

The super guaranteed rate for employers sits at 12 per cent for 2025-26. From 1 July 2026 employers are required to  pay their employees' superannuation guarantee at the same time as their salary and wages. Rather than the previous quarterly deadlines, contributions must now reach the employee's super fund within 7 business days of their normal pay day.

The concessional contributions cap for super sits at $30,000 for the 2025-26 year, increasing to $32,500 for the 2026-27 year. This includes employer contributions and any salary sacrifice or personal contributions for which you intend to claim a deduction. Exceeding the cap triggers additional tax.

One significant change coming from 1 July 2026 is the $1,000 standard deduction for work-related expenses. This will apply from the 2026-27 financial year, meaning it will first appear in returns lodged from July 2027.

 
EOFY Tax Checklist: What to Do Before 30 June

The weeks before 30 June are the only window in which certain tax strategies can be executed for the current year. Once the financial year closes, the opportunity is gone for another twelve months.
 

1. Bring forward deductible expenses. If you plan to purchase work-related tools, equipment, or subscriptions, doing so before 30 June means the expense falls in the current financial year and can be claimed in this year's return.
2. Make a personal super contribution. The concessional cap is $30,000 for the 2025-26 year, increasing to $32,500 for the 2026-27 year. including employer contributions. Making a personal contribution before 30 June and lodging a Notice of Intent to Claim with your fund allows you to deduct the contribution in this year's tax return.
3. Prepay eligible expenses. Investment loan interest and income protection insurance premiums can be prepaid for up to 12 months in advance and claimed in the current year.
4. Realise capital losses. If you hold investments sitting at a loss, selling before 30 June locks in the loss, which can be used to offset any capital gains made during the same year.
5. Confirm your private health insurance. If your income exceeds the Medicare Levy Surcharge threshold ($101,000 for singles in 2025-26, increasing to $105,000 for the 2026-27 year), ensure you hold hospital cover before 30 June.
6. Donate to a registered charity. Donations of $2 or more to a Deductible Gift Recipient must be made before 30 June to be claimable in the current year's return.
7. Get your records in order. Ensure your receipts, vehicle logbook, and work-from-home hours diary are complete and up to date. Missing records at tax time means missed deductions.
8. Book your H&R Block appointment early. July and August are the busiest months of the year. Booking your appointment before the financial year ends or in the first week of July means you get in ahead of the rush.

 
Ready to get your EOFY sorted?

H&R Block has over 400 offices across Australia, and every consultant is trained to maximise your tax refund, ensure you comply with tax laws, and save you time. Whether you want to walk in with your documents or lodge remotely, we handle the whole return for you. Clients who register with us before 31 October get access to an extended lodgement deadline through to May.

Find your nearest H&R Block office and book an appointment today.