The Ultimate EOFY Checklist for Australian Sole Traders (2025)

As a sole trader in Australia, End of Financial Year (EOFY) can feel overwhelming. Between gathering receipts, categorizing expenses, and preparing for your tax return, it's easy to feel buried in paperwork.

But here's the good news: with the right system, EOFY prep can be straightforward. This guide walks you through every step, from collecting bank statements to lodging your tax return. Whether you're doing your own taxes or working with an accountant, this checklist will save you time, stress, and potentially thousands of dollars.

Let's dive in.

Gather All Your Bank Statements

This is often the most tedious part of EOFY prep - and the most important. Your bank statements are the foundation of your tax return. You need a complete record of every transaction from July 1 to June 30.

What You Need:

All business bank account statements (12 months)
Credit card statements if used for business
PayPal, Stripe, or Square statements if applicable
Personal account statements (if you used personal funds for business expenses)

The Manual Way (2-3 hours):

Log into each bank's website, download PDFs one month at a time, manually copy transaction data into Excel, fix formatting errors, reconcile totals. Repeat for every account.

💡 Time-Saving Tip

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Pro Tips:

Download in chronological order (July → June) to make reconciliation easier
Check for gaps - missing even one month can throw off your entire return
Keep a backup in cloud storage (Google Drive, Dropbox) in case your accountant needs them later

Categorize Your Business Expenses

Once you have all your transactions in one place, it's time to categorize them. The ATO has specific categories for business expenses, and proper categorization ensures you claim every deduction you're entitled to.

Common Sole Trader Deductions:

✅ Deductible:

Office supplies & stationery
Software subscriptions
Phone & internet (business portion)
Marketing & advertising
Professional development
Home office expenses
Vehicle expenses (business use)
Insurance premiums
Accounting fees
Bank fees

❌ Not Deductible:

Personal groceries
Entertainment (meals, drinks)
Personal vehicle use
Gym memberships
Personal phone calls
Home renovations (non-office)
Clothing (unless protective/uniform)
Fines & penalties

Common Mistake:

Claiming 100% of expenses that have both personal and business use (like your phone or car). You can only claim the business portion. Keep a logbook or diary to prove your claim.

How to Categorize Efficiently:

Export all transactions to a spreadsheet
Add a "Category" column
Sort by description/vendor
Use filters to batch-categorize similar transactions
Flag unclear transactions to review with your accountant

Time commitment: 2-4 hours depending on transaction volume. Use accounting software like Xero or MYOB to automate this in future years.

Calculate Your Income (and Don't Forget Cash Jobs)

You need to report all income received during the financial year, including:

Invoiced income (even if paid late)
Cash payments (yes, the ATO knows about these)
Online platform income (PayPal, Stripe, Shopify)
Interest earned on business accounts
Bartering/trade (market value of goods/services exchanged)

Don't Skip This:

The ATO data-matches income from banks, payment processors, and clients who claim deductions for paying you. If your reported income doesn't match their records, you'll trigger an audit.

How to Calculate Total Income:

Sum all deposits in your business bank account
Add cash payments recorded in your records
Include any personal account deposits from business activities
Cross-reference with invoices sent
Don't include loan deposits, transfers between your own accounts, or personal funds

Pro tip: If you use invoicing software (Xero, MYOB, QuickBooks), export your "Profit & Loss" report for July 1 - June 30. This gives you a clean income total and expense breakdown.

Collect Receipts & Invoices

For any expense over $82.50 (incl. GST), you need a tax invoice or receipt as proof. Digital scans are fine - no need to keep paper.

Tools that help: Dext, Receipt Bank, or even a "Receipts" folder in Google Drive.

Calculate Home Office Deduction

Two methods: Fixed rate ($0.67/hour) or Actual cost (% of home expenses). Fixed rate is easier but may be less beneficial.

What you can claim: Rent/mortgage interest (%), electricity, internet, phone, cleaning, depreciation.

Reconcile GST (If Registered)

If you're GST-registered, ensure your BAS submissions match your annual totals. Mismatches trigger ATO reviews.

Check: GST collected vs. paid, quarterly BAS vs. annual return.

Review Superannuation Contributions

Voluntary super contributions are tax-deductible. If you made any, claim them - but notify your super fund first.

Deadline: Notice must be lodged before you submit your tax return.

Claim Instant Asset Write-Off

Assets under $20,000 can be immediately deducted. Think laptops, tools, equipment purchased during the year.

Note: Threshold changes annually. Check ATO website for current limit.

Prepare Accountant Handover Package

Bundle everything your accountant needs: bank statements (CSV), receipts, income summary, expense categories, previous year's return.

Pro tip: Well-organized clients get faster turnaround and lower fees.

Lodge Your Tax Return

DIY or accountant? If your return is simple (no employees, basic expenses), myTax is fine. Complex? Pay for an accountant - it's deductible.

Deadline: October 31 (DIY) or May 15 (via registered agent).

Top 5 EOFY Mistakes Sole Traders Make

1. Mixing Personal & Business Expenses

Using one bank account for everything makes categorization a nightmare. Open a separate business account - it's free and saves hours of work.

2. Forgetting to Keep Records

"I'll remember what that $350 charge was for." No, you won't. The ATO requires substantiation for every deduction. No receipt = no deduction.

3. Over-Claiming Vehicle Expenses

The ATO heavily scrutinizes car claims. You need a logbook showing business vs. personal use. Guessing = audit risk.

4. Missing the Super Contribution Notice Deadline

You can claim personal super contributions as deductions, but only if you notify your super fund before lodging your return. After = no deduction.

5. Waiting Until June 30

EOFY prep should be ongoing, not a last-minute scramble. Reconcile monthly, categorize as you go, and June becomes stress-free.

🛠️ Tools That Make EOFY Easier

Bank Statement Converter (That's Us!)

Stop manually copying transactions from PDFs. Convert Australian bank statements to CSV in seconds. Works with CommBank, Westpac, NAB, ING, UBank, and more.

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Xero / MYOB / QuickBooks

Cloud accounting software that categorizes expenses, tracks income, and generates reports. Worth the investment if you have consistent transaction volume.

Dext (formerly Receipt Bank)

Snap photos of receipts, Dext extracts the data and syncs with your accounting software. No more shoebox of paper.

ATO myDeductions App

Free app from the ATO. Record expenses as they happen, upload to myTax when you lodge. Simple, effective.

Final Thoughts

EOFY prep doesn't have to be overwhelming. The key is starting early, staying organized, and using the right tools. If you follow this 10-step checklist, you'll have everything you need to submit an accurate return, maximize your deductions, and avoid ATO red flags.

Remember: time spent organizing your finances now saves hours (and money) at tax time. Whether you're doing your own return or working with an accountant, a well-prepared sole trader is a confident one.

Need Help Converting Bank Statements?

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Frequently Asked Questions

When is the EOFY deadline for sole traders in Australia?

If you're lodging your own tax return, the deadline is October 31. If you use a registered tax agent, you typically get until May 15 of the following year. However, your agent may have earlier cut-off dates for client submissions.

Can I do my own tax return as a sole trader?

Yes, you can use the ATO's myTax portal. However, if you have complex deductions, own assets, are GST-registered, or aren't confident with tax law, a registered tax agent is recommended. Their fee is tax-deductible, and they can often find deductions that save more than their cost.

How long do I need to keep my records?

The ATO requires you to keep records for 5 years from the date you lodge your tax return. This includes bank statements, receipts, invoices, and any supporting documents. Digital copies are acceptable.

What if I can't find all my receipts?

For expenses under $82.50 (incl. GST), you don't need a receipt - your bank statement showing the transaction is usually enough. For anything over that, you need a tax invoice. If you've lost receipts, contact the vendor and request duplicates. Many businesses can re-send digital invoices.

Can I claim my coffee meetings as a business expense?

Generally, no. The ATO classifies meals and entertainment as non-deductible for sole traders, even if they're business-related. There are limited exceptions (like meals while traveling for work), but your daily coffee or client lunch typically isn't claimable. Always check with a tax professional if unsure.