The Australian Bookkeeper's Year-End Checklist: Everything to Do Before 30 June

Last reviewed against current ATO guidance: 27 May 2026. Always confirm current thresholds, rates, and dates at ato.gov.au.

30 June marks the end of the Australian financial year for most entities. What happens in the weeks before it determines whether the tax agent receives clean, reconcilable accounts on time — or spends August untangling a year's worth of unresolved issues.

This checklist is for bookkeepers servicing clients who have the standard 30 June financial year-end. Tick off each item before the year closes, and hand the tax agent a package they can work from immediately.

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Bank reconciliation — all accounts

Reconcile every bank account to 30 June. This means every trading account, savings account, loan account, credit card, and line of credit. The balance per the bank statement at 30 June should match the balance in the accounting software.

Common blockers that prevent reconciliation completion before year-end:

• Cheques issued but not yet cleared (identify and list as outstanding)
• Deposits recorded in the books that haven't cleared (confirm if they will clear before 30 June)
• Bank errors or disputed transactions (flag for resolution immediately)

If a transaction is unresolved, note it explicitly: "Transaction $2,450 dated 28 June — purpose unconfirmed, coded to holding account pending client explanation."

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Payroll — STP finalisation

Reconcile YTD payroll to 30 June. The process:

1. Pull the STP YTD report from the payroll system
2. Compare gross wages per STP to gross wages per the general ledger (should match)
3. Reconcile PAYG withholding per STP to PAYG withholding per BAS (W2 totals across all periods)
4. Reconcile super guarantee per payroll to clearing house payment records
5. Confirm any leave balances are correctly accrued

STP finalisation: After year-end, submit the STP finalisation event. This releases employee income statements to the ATO, making them visible to employees in myGov for tax return purposes. The ATO's deadline is 14 July for most employers; closely held payees have until 14 September.

Do not submit STP finalisation before the payroll is fully reconciled — correcting a finalised STP requires an amendment event, which triggers additional review.

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Debtors and creditors review

Debtors (accounts receivable):

• Review every outstanding invoice
• Identify invoices overdue by more than 90 days
• Flag any genuinely unrecoverable debts — these may be deductible as bad debts if the conditions are met (written off before 30 June, previously assessed as income)
• Confirm GST treatment for any credit notes or adjustments to be issued

Creditors (accounts payable):

• Review outstanding invoices and confirm they relate to the current financial year
• Ensure any invoices received before 30 June but not yet paid are accrued in the accounts (deductible in the year incurred for accruals-basis taxpayers)
• Check that any disputed invoices are noted and the dispute is documented

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Prepayments and accruals

Prepayments: Expenses paid before 30 June for services extending beyond 30 June (insurance premiums, rent in advance, subscriptions) may need to be deferred to the following year for correct income matching. The 12-month rule for small businesses allows immediate deduction if the service period is less than 12 months and ends before 30 June of the following year.

Accruals: Expenses incurred before 30 June but not yet invoiced (accrued wages, accrued rent, accrued interest) should be recorded in the accounts even if no invoice has been received. This is particularly important for:

• Accrued super guarantee (the Q4 super is accrued before 30 June but typically not paid until July)
• Accrued annual leave and long service leave
• Accrued professional fees (e.g., accounting fee for preparing the prior year return)

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Stock / inventory (where applicable)

For clients who hold physical inventory:

• Stocktake at 30 June: The ATO requires a physical stocktake at year-end. The value of closing stock is used in the cost of goods sold calculation.
• Update the inventory value in the accounting software to match the stocktake.
• Note any obsolete, damaged, or slow-moving stock that may be written down to net realisable value.

For small businesses using the simplified trading stock rules: if the difference between opening and closing stock is less than $5,000, the entity can choose to not do a formal stocktake and use opening stock as the closing stock value.

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Motor vehicle and asset review

Vehicle log books: For clients claiming a business-use percentage for vehicles, the log book must be current (within five years) and must represent a representative 12-week period. If a log book is out of date, flag to the client to start a new one.

Fixed asset register: Reconcile the fixed asset register to the general ledger. Check that:

• All asset purchases during the year are in the register
• Asset disposals have been removed (and gains/losses recognised)
• Depreciation has been calculated to 30 June
• Any assets under the instant asset write-off threshold have been identified for the tax agent

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Loans and borrowings

Business loans and overdrafts:

• Confirm the closing balance on all loan accounts matches the lender's statement at 30 June
• Identify any interest accrued but not yet paid (accrual for year-end)
• Confirm any loan fees paid during the year are correctly coded (borrowing costs may need to be amortised rather than expensed immediately)

Director/shareholder loans (companies):

• Bring the director loan account up to date for the Division 7A review
• Flag the balance to the tax agent before their 30 June review — the tax agent needs to determine if any amount requires a complying loan agreement or if a deemed dividend will arise

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GST reconciliation

Before year-end, reconcile total BAS lodgements for the year against the general ledger:

• Sum of all G1 (total sales) across the four quarterly BAS should equal total income per the P&L (adjusted for non-taxable income)
• Sum of all G10 (capital acquisitions) across the four BAS should equal capital purchases per the fixed asset movements
• Sum of all PAYG withholding (W2) across all BAS should equal PAYG withholding per the payroll system

Discrepancies between BAS lodgements and the general ledger indicate either a coding error or an unreported or under-reported BAS — both require investigation before the tax agent sees the accounts.

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Trust distribution resolution (trust clients)

For clients operating through a discretionary trust:

This is time-critical. The trustee resolution must be made by 30 June (not after) for the distribution to be effective for that financial year. Without a valid resolution, the ATO may assess all income to the trustee at the top marginal rate.

The bookkeeper's role: ensure the accounts are sufficiently reconciled before 30 June that the tax agent can advise the trustee on income levels and distribution options. Bring the trust accounts to a near-final position by 20–25 June to give the tax agent time to advise.

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The year-end handoff package

What to provide to the tax agent:

1. Reconciled trial balance at 30 June
2. Bank reconciliation statements for all accounts
3. BAS annual reconciliation (BAS totals vs GL)
4. STP YTD reconciliation (pending finalisation)
5. Payroll summary (all employees, YTD figures)
6. Fixed asset register with disposals noted
7. List of unresolved items or outstanding queries
8. Director loan account balance (for companies)
9. Notes on any unusual transactions, estimates, or judgement calls made during the year

A well-structured handoff reduces the tax agent's preparation time and the number of return queries to the bookkeeper — saving time on both sides.

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Timeline

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This checklist reflects standard practice for Australian financial year-end. Individual client circumstances may require additional steps. Always confirm requirements with the tax agent for each client. This is general guidance, not specific tax or legal advice.