As 2025 winds down, many Sydney businesses are turning their attention to the 2026 end of financial year (EOFY). With evolving tax rules, stricter reporting requirements, and increased scrutiny from the ATO and state revenue authorities, preparing early has never been more important.
In this blog, we highlight the key areas every Sydney business should focus on now to avoid penalties, optimise cash flow, and start the new financial year with confidence.
Key Compliance Priorities for 2026
1. Single Touch Payroll (STP) Accuracy
With the ATO expanding its use of STP data to flag discrepancies, employers must ensure:
- All wages, superannuation, and contractor payments are accurately reported.
- Finalisation declarations are lodged by the required deadlines.
- Systems and software are updated to capture new reporting categories.
2. Payroll Tax Forecasting and Grouping Rules
Businesses experiencing growth or expanding across entities need to:
- Forecast potential payroll tax liabilities as wage bills rise.
- Understand how grouping rules apply to related companies.
- Review contractor arrangements to prevent unexpected liabilities.
3. R&D Tax Incentive Readiness
Companies investing in innovation, technology, or new processes can benefit from R&D tax offsets. To prepare, businesses should:
- Keep detailed records of eligible R&D activities and expenditure.
- Monitor recent updates to application forms and documentation requirements.
- Engage advisors early to maximise benefits before EOFY.
4. Superannuation and Retirement Contributions
With changes in super caps and contribution limits in 2025–26, it’s crucial to:
- Maximise concessional contributions before the financial year ends.
- Review self-managed super fund (SMSF) structures for compliance and performance.
- Align super strategies with long-term tax and wealth planning goals.
5. ESG and Transparency in Reporting
Investors and regulators increasingly expect businesses to disclose ESG (environmental, social, and governance) data alongside financial performance. Forward-thinking businesses should:
- Identify which ESG metrics apply to their sector.
- Ensure financial reports capture relevant sustainability measures.
- Demonstrate compliance and transparency to stakeholders.
Why Acting Early Matters
Businesses that wait until June risk scrambling to meet deadlines, often missing opportunities to optimise their tax positions or avoid penalties. By planning now, Sydney businesses can:
- Improve cash flow forecasting.
- Reduce last-minute compliance stress.
- Take advantage of tax incentives before year-end.
How Boa & Co. Chartered Accountants Can Help
At Boa & Co., we support Sydney businesses by:
- Conducting EOFY health checks to identify compliance gaps and savings opportunities.
- Providing expert guidance on STP, payroll tax, and R&D claims.
- Offering tailored advice on superannuation and wealth strategies.
- Assisting with audit preparation and ESG reporting frameworks.
The Bottom Line
EOFY 2026 may feel far away, but for proactive Sydney businesses, the time to act is now. By reviewing systems, addressing compliance risks, and leveraging incentives, you’ll be better prepared for a smooth and successful financial year-end.
📩 Contact Boa & Co. Chartered Accountants today to prepare for EOFY 2026:
📞 1300 952 286
📧 [email protected]
🌐 www.boanco.com.au
Stay compliant. Stay confident. Stay ahead.