Small Business EOFY Tax Tips 2022

The end of financial year 2022 is upon us. It’s a good idea to keep on top of these key dates to keep your business running smoothly through the added pressure of tax time.

The end of financial year (EOFY) is important for small business because it means the financial wrap up of the year, planning for future growth and direction with the added requirements and obligations of lodging a business tax return and claiming all eligible tax deductions.


What records and financial tasks should you aim for at the EOFY 2022? Financial tasks you may need to do include:

  • A profit and loss statement – lists your sales and expenses and your profit or loss
  • Stocktakes and assets – you should keep detailed records of stock on hand and value, who did the stocktake, how and when it was done and who valued stock and the basis of the valuation
  • Summaries of debtors and creditors – a detailed list of who owes you money and who you owe money to
  • Collating purchases and expenditure for capital gains tax (CGT) – A CGT event when you sell or give an asset away, lose an asset or make a loss on assets
  • Competing and lodging your business tax return – the amount of money you can claim back depends on your businesses taxable income
  • Lodging yearly PAYG (Pay-As-You-Go), FBT (Fringe Benefits Tax), GST (Goods And Services Tax) reports
  • Meeting superannuation requirements – you’ll need to make sure you’ve paid yourself and your valid employee their super guarantee through Single Touch Payroll (STP) on your accounting software system
  • Making sure your bookkeeping is in good order – you can only claim tax deductions with the right proof
  • Making sure you claim all eligible work-related expenses as tax deductions – you should keep records of all transactions related to buying, maintaining, repairing and selling business-related assets and stock to substantiate expenses reported in your tax return


Tax Returns

The tax season runs between 1 July 2022 to 31 October 2022. If you use a tax agent, and have booked an appointment before the 31 October, you may have until the 15 May 2023 to lodge this year’s tax return.

Business Activity Statements

Your Business Activity Statements (BAS) reports are used to report and pay other taxes your business is obligated to pay. This includes the GST, PAYG withholding and instalments and your super guarantee.

Pro Tax Tip: It’s an obligation for all small businesses, including micro-businesses to report using STP if they have employees.

Payroll information for your employees will need to be reported directly to the Australian taxation Office (ATO) each time you run your payroll.

Most businesses who lodge their BAS will need to either pay any amount owing, or receive their refund quarterly, although some businesses may need to lodge their BAS monthly or annually. The ATO will let you know which frequency you’ll need to report.

The dates for BAS lodgement are:

  • Quarter 1 (July, August and September) – 28 October
  • Quarter 2 (October, November and December) – 28 February
  • Quarter 3 (January, February and March) – 28 April
  • Quarter 4 (April, May and June) – 28 July


You must pay a super guarantee to each of your employees, and in some cases to your contractors. It’s a good idea to understand who you need to pay superannuation to. Recent new rules mean that you’ll need to pay a current contribution rate of 10%, and pay employees who work either more than 30 hours per week, or earn $450 or more per month.

As of 1 July 2022, the super rate will increase to 10.5% and for workers over 18 years old, the $450 threshold will no longer exist, and the super guarantee will be payable regardless of the income earned each month.

The dates you must meet your super guarantee are:

  • Quarter 1 (July, August, and September) – 28 October
  • Quarter 2 (October, November and December) – 28 January
  • Quarter 3 (January, February and March) – 28 April
  • Quarter 4 (April, May and June) – 28 July

Pro Tax Tip: When a super due date falls on a weekend or public holiday, you can make the payment on the next business day.


Tax Deductions

There are a number of work-related expenses your small business can claim. The ATO are stringent on what and how you can claim. They enforce three rules:

  • The expense must be work-related. If you have a private portion, you’ll need to work out which is private and which is business
  • You must have already spent the money
  • You must have proof. Proof can be in the form on receipts, tax invoices, contracts, financial statements, contracts, log books, travel and work diaries

Pro Tax Tip: You can’t claim GST as a tax deduction. GST can only be claimed on your BAS

A tax deduction isn’t a 100% refund. Your work expenses are deducted from your total assessable income to reduce the rate you pay on that amount. Generally, a tax deduction equals around 32.5% to 37% claim of your original cost in most instances.

Generally operating and capital expenses can be claimed. Operating expenses are items such as office stationery and wages and can be claimed in the year in which you receive the expense. Capital expenses are items such as machinery and equipment. These items will need to be depreciated over a number of years.

Every small business is different, but generally the types of operating expenses that can be claimed are:

  • Motor vehicle expenses
  • Home-based expenses
  • Business travel expenses
  • Worker’s salaries, wages and super contributions
  • Repairs, maintenance and replacement expenses
  • Other operating expenses
  • Depreciating assets and other capital expenses
  • Advertising, marketing and professional services fees

EOFY is an opportunity to review your finances with an accountant or bookkeeper and check if you’ve met your targets and what you can do differently for the upcoming year. A professional will help guide you to where you want to go, whether that be financial growth, location expansion or new product introduction. They will help you manage potential shortfalls and ensure you can pay your staff and suppliers.