End of financial year cash flow: getting through June and July in good shape

For Australian businesses, 30 June is more than a date on the calendar. It is the deadline for tax planning decisions, the start of a new set of books, the trigger for annual renewals and, for many industries, the end of a quieter stretch. Several large cash demands cluster around it, and businesses that have not planned can find July unexpectedly tight. A little preparation turns EOFY from a scramble into a routine, and it gives you time to make decisions on the numbers rather than on a deadline.

What lands around 30 June

Each business is different, but the common EOFY cash demands include:

• Tax planning purchases. Equipment, stock or prepaid expenses brought forward for deductions.
• Stocktake. Not a cash cost in itself, but it often reveals how much money is tied up in stock.
• Annual renewals. Insurance, software subscriptions, registrations and licences that renew on 1 July.
• June quarter BAS. GST and PAYG withholding for April to June.
• Super. Under Payday Super from 1 July 2026, super goes out with each pay run, so the old June quarter super lump is replaced by regular payments.
• Wage changes. Award rate adjustments often take effect from the first full pay period on or after 1 July.
• Income tax. Depending on your structure and PAYG instalments, a final tax bill may follow when returns are assessed.

Do not buy what you do not need

Every June, businesses are encouraged to “buy before 30 June” to save tax. A deduction reduces tax by only a portion of the cost, so spending $20k you did not need to save a fraction of that in tax leaves the business worse off in cash terms. Buy equipment because it earns money or saves time, and check the current ATO rules on depreciation and any instant asset write-off with your accountant. If a genuinely useful purchase happens to fall before 30 June, fund it sensibly. See equipment funding.

Plan from March

The best EOFY outcomes start early:

1. March: estimate the year’s profit and tax with your accountant.
2. April: list July renewals and their amounts; decide on any purchases.
3. May: review stock levels and plan clearance of slow lines.
4. June: confirm the June quarter BAS estimate and make sure the tax account holds enough.
5. July: lodge, pay and review what worked.

Our guide to setting aside tax from every sale shows how to build the tax account through the year so June is not a shock.

EOFY squeeze ahead? Start an enquiry and tell us what is due and when. No credit check to enquire.

When short-term funding helps

Funding is useful at EOFY when the timing is the problem, not the money: a large customer pays in late July but renewals are due on the 1st, or a record year produces a tax bill that the business will cover from strong trading over the next few months. A short-term loan or a line of credit drawn in July and repaid by spring can bridge it cleanly. See short-term business loans and business line of credit.

For tax bills specifically, compare funding with an ATO payment plan on total cost. Our page on paying an ATO tax bill explains the trade-offs.

Use the stocktake to free cash

A stocktake is a good moment to identify items that have not sold in months. Clearing them, even at a discount, turns dead stock back into cash and reduces what you need to borrow. Our guide on stock and inventory cash flow explains how to spot slow movers and reorder smarter.

Reset for the new year

EOFY is also a natural point to review payment terms, prices and supplier agreements. If last year included regular cash crunches, adjust before they repeat: shorten terms for new customers, review pricing against rising costs, and set up an automatic transfer to a tax account. Starting the year with a small cash buffer, even a few weeks of fixed costs, makes every other month easier. It is also a good time to look at which customers paid slowest over the year and which suppliers offered the best terms, so the next twelve months start with better habits rather than the same pressures.

Getting financials done promptly

Lodging your return and finalising financials early in the new year is worth the effort. Up-to-date financials open more funding options, including longer terms and larger facilities, and they give you an accurate picture of how the business really performed. If your accountant is busy, book your appointment before June so your file is in the queue.

An illustrative example

An illustrative engineering consultancy has its professional indemnity insurance, software licences and vehicle registrations all renewing on 1 July, along with the June quarter BAS due in late July. Its largest government client pays quarterly in arrears, with the June quarter’s payment arriving in mid-August. A modest line of credit drawn in early July covers the renewals and BAS, and it is cleared when the government payment lands.

Start the new year on the front foot

If June and July bring a cluster of payments your account cannot comfortably cover, tell us what is due, when and how the money will come back. There is no credit check to enquire, your details are kept with us rather than broadcast to lenders, and a real person reads your enquiry. Accurate dates and amounts help us suggest a short, well-matched solution. Apply now.