The Australian financial year runs from 1 July to 30 June of the following year. The current financial year is 2026–27, which started on 1 July 2026 and ends on 30 June 2027.
For most Australian businesses, the financial year is used to track income, expenses, tax obligations and financial performance. EOFY (End of Financial Year) refers to the period around 30 June, when businesses and individuals finalise the financial year that has ended and prepare for the next one.
The financial year is divided into four quarters:
| Financial year | Dates |
| Q1 | 1 July – 30 September 2026 |
| Q2 | 1 October – 31 December 2026 |
| Q3 | 1 January – 31 March 2027 |
| Q4 | 1 April – 30 June 2027 |
| EOFY | 30 June 2027 |
For individuals lodging their own tax return, the standard lodgment deadline is generally 31 October. Registered tax agents may have different lodgment arrangements under the ATO’s tax agent lodgment program.
In simple terms: Australia’s financial year is different from the calendar year. It begins in July, ends in June, and the end of June marks the point at which businesses close out one financial year and move into the next.
What Is the Financial Year in Australia?
The financial year in Australia is a 12-month period that runs from 1 July to 30 June of the following year. It is the standard period used by businesses, individuals and government bodies for financial and tax reporting.
For example, the 2026–27 financial year runs from 1 July 2026 to 30 June 2027. The financial year is named according to the calendar year in which it ends, so the period ending on 30 June 2027 is called FY 2026–27.
Why Is Australia’s Financial Year Different From the Calendar Year?
Australia’s financial year does not follow the calendar year. Instead, the tax and reporting year begins on 1 July and finishes on 30 June.
This means:
- Calendar year: 1 January – 31 December
- Financial year: 1 July – 30 June
- EOFY: 30 June
- New financial year: Starts 1 July
The distinction matters because financial statements, tax returns, business reporting and many compliance activities are organised around the financial year rather than the calendar year.
What is the current financial year in Australia?
As of August 2026, the current Australian financial year is FY 2026–27.
| Financial year | Start date | End date |
| FY 2025–26 | 1 July 2025 | 30 June 2026 |
| FY 2026–27 | 1 July 2026 | 30 June 2027 |
| FY 2027–28 | 1 July 2027 | 30 June 2028 |
This naming convention is worth understanding when reading Australian tax, accounting and business information. In Australian business and accounting contexts, “FY27” generally refers to the financial year ending 30 June 2027, not the year beginning in 2027.
Australian Financial Year Dates for 2026–27
The 2026–27 Australian financial year runs from 1 July 2026 to 30 June 2027. For businesses, this period provides the framework for tracking financial performance, preparing annual accounts and meeting relevant tax and reporting obligations.
2026–27 Financial Year at a Glance
| Period | Dates | What it represents |
| Q1 | 1 July – 30 September 2026 | First quarter |
| Q2 | 1 October – 31 December 2026 | Second quarter |
| Q3 | 1 January – 31 March 2027 | Third quarter |
| Q4 | 1 April – 30 June 2027 | Fourth quarter |
| EOFY | 30 June 2027 | End of the 2026–27 financial year |
| New FY | 1 July 2027 | Start of FY 2027–28 |
Key Financial Year Dates to Know
Some dates are fixed by the financial year itself, while tax and reporting deadlines can vary depending on the taxpayer, business structure, obligation and lodgment method.
| Date / period | Significance |
| 1 July 2026 | Start of FY 2026–27 |
| 30 September 2026 | End of Q1 |
| 31 December 2026 | End of Q2 |
| 31 March 2027 | End of Q3 |
| 30 June 2027 | EOFY and end of FY 2026–27 |
| 1 July 2027 | Start of FY 2027–28 |
For tax returns and other obligations, businesses should check the specific ATO due date that applies to their circumstances rather than assuming every taxpayer follows the same deadline.
Australian Financial Year Quarters
The Australian financial year is divided into four quarters, each covering three months. These quarterly periods help businesses monitor financial performance and manage recurring reporting throughout the year.
Why do financial year quarters matter?
Quarterly periods give businesses regular points to review their finances rather than waiting until EOFY. Depending on the business and its obligations, quarterly accounting activities may include:
- Reviewing revenue and expenses
- Reconciling accounts
- Monitoring cash flow and financial performance
- Preparing or reviewing BAS and GST information
- Checking payroll and other recurring obligations
- Comparing actual results with budgets or forecasts
The exact reporting and lodgment requirements vary by business and tax obligation, so the quarter itself should not be treated as a universal deadline.
For businesses, the practical benefit is simple: regular financial reviews make EOFY less of a year-end scramble and provide better visibility throughout the year.
What Is EOFY in Australia?
EOFY falls on 30 June in Australia. It marks the end of one financial year and the start of the process of finalising financial records, reporting and relevant tax obligations.
For the 2026–27 financial year, EOFY falls on 30 June 2027.
EOFY is particularly important for businesses because it provides a natural point to review their financial position, finalise records and prepare for the year ahead.
What does EOFY mean for a business?
Before and around 30 June, businesses may need to:
- Reconcile bank and accounting records
- Review income, expenses and outstanding transactions
- Check accounts receivable and accounts payable
- Review payroll and related records
- Finalise relevant financial reports
- Organise records and supporting documents for tax preparation
- Review business performance against budgets or forecasts
- Identify issues that need to be addressed in the new financial year
The specific requirements depend on the business structure, accounting arrangements and tax obligations.
EOFY is more than a tax deadline
EOFY is often treated as a tax-focused event, but it is also an important financial review point.
A properly prepared EOFY gives business owners a clearer view of:
- Revenue and profitability
- Cash flow
- Outstanding debts
- Major expenses
- Financial trends
- Areas that may require attention in the new financial year
For accounting firms, EOFY can also create a significant increase in client workload, particularly across bookkeeping, reconciliations, reporting and tax-related preparation. Accounting outsourcing can provide additional capacity during these periods without requiring permanent in-house hiring.
The practical goal is to close the financial year with accurate, organised records and carry useful financial information into the next one.
Financial Year vs Tax Year: Is There a Difference?
In Australia, financial year and tax year generally refer to the same 12-month period: 1 July to 30 June of the following year.
The difference is mainly in how the terms are used.
| Term | Meaning |
| Financial year | The 1 July–30 June period used for financial and business reporting |
| Tax year | The same period when referring specifically to income tax and tax obligations |
| EOFY | 30 June, marking the end of the financial year |
For practical purposes, a business preparing its accounts for FY 2026–27 is working with the same 1 July 2026 to 30 June 2027 period that applies to its annual income tax reporting.
Is the Australian financial year the same as the calendar year?
No. A calendar year runs from 1 January to 31 December, while Australia’s standard financial and tax year runs from 1 July to 30 June.
This distinction is important when interpreting Australian accounting, tax and business information, particularly around EOFY, tax returns, financial reporting and budgeting.
What Does the Financial Year Mean for Australian Businesses?
For Australian businesses, the financial year provides a consistent period for measuring performance, preparing financial records and managing tax and reporting obligations.
As the financial year progresses, businesses should keep their accounting records up to date rather than treating EOFY as a once-a-year clean-up exercise.
Key areas include:
- Bookkeeping: Keep income, expenses and transactions accurately recorded.
- Bank reconciliation: Regularly reconcile accounts and investigate discrepancies.
- Accounts receivable: Monitor outstanding customer invoices and follow up overdue amounts.
- Accounts payable: Keep supplier invoices and outstanding obligations up to date.
- Payroll: Maintain accurate payroll records and supporting documentation.
- GST and BAS: Review relevant GST records and meet applicable reporting obligations.
- Financial reporting: Use quarterly and annual reports to monitor business performance.
- Tax Accounting: Maintain organised records throughout the year to make tax preparation more efficient.
Why does this matter at EOFY?
When financial records are maintained throughout the year, EOFY becomes a process of reviewing and finalising accurate information, rather than trying to reconstruct twelve months of transactions at once.
For SMEs, this can also provide a useful opportunity to assess profitability, cash flow and financial performance before setting priorities for the new financial year.
The key principle is simple: good EOFY preparation starts well before 30 June.
How Should a Business Prepare for EOFY?
Preparing for EOFY is easier when financial records are reviewed progressively throughout the year. As 30 June approaches, businesses should focus on closing outstanding items and ensuring their records are complete and accurate.
EOFY checklist for Australian businesses
| Area | What to check |
| Bookkeeping | Ensure transactions are recorded and accounts are reconciled |
| Invoices | Review outstanding and unpaid invoices |
| Expenses | Check that business expenses are properly recorded and supported |
| Payroll | Review payroll records and required reporting |
| GST/BAS | Check relevant GST records and reporting obligations |
| Accounts payable | Confirm outstanding supplier bills and liabilities |
| Financial reports | Review profit, expenses, cash flow and overall performance |
| Records | Organise financial documents and supporting evidence |
Businesses should also identify unusual transactions, missing records or unresolved accounting issues before finalising their financial information.
Start before 30 June
EOFY preparation should not be left entirely until the final weeks of June. Regular bookkeeping, reconciliations and financial reviews throughout the year reduce the amount of work required at EOFY and make it easier to identify issues early.
The exact steps and deadlines will vary depending on the business structure and its tax and reporting obligations.
What Happens When the New Financial Year Starts?
The new Australian financial year begins on 1 July. Once the previous year has been closed, businesses can use the new financial year to reset budgets, review financial performance and establish priorities for the year ahead.
For SMEs, this may include:
- Setting or updating budgets
- Reviewing cash-flow forecasts
- Assessing pricing and operating costs
- Setting financial targets
- Reviewing accounting processes and reporting needs
For accounting firms, the start of a new financial year is also an opportunity to move from EOFY finalisation into ongoing bookkeeping, reporting and advisory work.
EOFY closes one reporting period; the new financial year provides the starting point for the next one.
FAQs About the Australian Financial Year
1. Why does the Australian financial year end in June?
Australia’s standard financial year runs from 1 July to 30 June, so 30 June marks the end of the financial and tax year.
2. What financial year is it in Australia in August 2026?
It is currently FY 2026–27, which runs from 1 July 2026 to 30 June 2027.
3. What is the difference between FY26 and FY27 in Australia?
FY26 refers to the financial year ending 30 June 2026, while FY27 refers to the financial year ending 30 June 2027.
4. What happens at the end of the Australian financial year?
Businesses typically finalise their financial records, review their performance and prepare relevant tax and reporting information for the completed financial year.
5. When should businesses start preparing for EOFY?
EOFY preparation should ideally happen throughout the financial year, with a final review before 30 June to resolve outstanding transactions, records and reconciliations.