EOFY 2026 Checklist for Australian Business Owners Thinking About Selling

June 30, 2026 is 89 days away.

For most Australian business owners, EOFY is a filing exercise. But if you're considering selling your business — in the next 6, 12, or even 24 months — the June 30 deadline is a strategic moment, not just an admin one.

Several tax concessions, super contribution strategies, and write-off windows close at June 30 and don't reset at the same level. Some are ending entirely. Others interact with each other in ways that only work if you act before settlement — not after.

This checklist covers what matters most for sellers approaching the exit window.

1. Confirm your eligibility for the small business CGT concessions

The four small business CGT concessions are the most powerful tax planning tools available to Australian business owners selling their businesses. Used correctly, they can eliminate most or all of the capital gain from a sale.

The four concessions are:

• 15-year exemption — if you've owned the asset continuously for 15 years and you're 55+ (or permanently incapacitated), the entire gain is exempt. No tax.
• 50% active asset reduction — reduces the capital gain by 50% if the asset qualifies as an active asset. Can be combined with the general 50% CGT discount for a 75% total reduction.
• Retirement exemption — up to $500,000 lifetime cap on capital gains from active assets. If you're under 55, the exempt amount must go into super. If you're 55+, you can take it as cash.
• Rollover relief — defer the gain if you're acquiring a replacement asset. Useful for serial business owners.

Eligibility requires meeting either the maximum net asset value (MNAV) test (net assets of you, your affiliates, and connected entities under $6 million) or the small business entity test (aggregated annual turnover under $10 million).

EOFY action: review your balance sheet now. If net assets are approaching $6 million, the timing of a sale matters. Settling before June 30 versus after can affect which test you meet, particularly if assets have been appreciating.

2. Act on the $20,000 instant asset write-off before June 30

The $20,000 instant asset write-off ends June 30, 2026. It has not been extended beyond this date.

For eligible small businesses (aggregated annual turnover under $10 million), assets costing up to $20,000 can be immediately deducted in the year they're installed ready for use. The threshold drops back to $1,000 from July 1.

If you're planning to sell, you might be wondering whether it's worth buying assets you plan to transfer with the business. The answer depends:

• If the asset is included in the sale price, you may be able to deduct the cost in the current year and recoup it through the sale price
• If you're retaining assets and selling the business as a goodwill/entity sale, it's worth discussing with your accountant whether the write-off improves your net position
• Assets must be used primarily for business purposes to qualify

Don't buy equipment you don't need just for the write-off. But if you have a genuine purchase pending, June 30 is a hard deadline.

3. Review your super contribution strategy before Division 296 starts

From July 1, 2026, the Division 296 super tax takes effect. Individuals with superannuation balances above $3 million will pay an additional 15% tax on earnings attributable to balances above that threshold — including unrealised gains.

This affects sellers who plan to contribute sale proceeds into superannuation, particularly those using the CGT retirement exemption (which requires under-55s to direct exempt amounts into super).

If your super balance is approaching $3 million, or the combination of your existing balance and a planned contribution would exceed it, the timing of your sale and contribution strategy matters more than it did last year.

Key questions to answer before June 30:

• What is your current super balance (including defined benefit or SMSF components)?
• If you sold this year, what would the retirement exemption amount be — and would contributing it push you over $3M?
• Are there contributions you should make before July 1 to lock in current tax treatment?

For a full breakdown, see our article on Division 296 and business sale timing.

4. Get your financials in order now — buyers need 3 years

Buyers conducting due diligence typically want three years of financial statements. If you're thinking about selling in FY2027, that means FY2025, FY2026, and FY2027 returns — but FY2026 won't be lodged until late 2026.

What you can do now:

• Review FY2025 financials — are they lodged? Do they accurately reflect business performance? Are add-backs clearly documented?
• Prepare management accounts for YTD FY2026 — buyers will want to see current-year performance before FY2026 returns are available
• Identify and document all owner add-backs — personal use of company vehicles, above-market owner salary, one-off expenses. These need to be defensible, not just listed
• Separate business and personal expenses now — if they're currently mixed, June 30 is your natural cut-off to clean this up

Clean financials are not just about compliance. They directly affect how buyers calculate your EBITDA — and therefore what they'll pay. Every dollar of understated profit costs you 3–6x in multiple at the negotiating table.

5. Check your trust and entity structure

Most Australian small businesses operate through trusts, companies, or combinations of both. The structure affects which CGT concessions apply, how proceeds are distributed, and what tax is paid by whom.

EOFY is the natural time to confirm:

• Which entity holds the business assets (the operating company, a trust, or a combination)?
• Are the assets you're planning to sell classified as active assets under the ATO's rules?
• Does your trust deed allow distributions that take advantage of CGT concessions?
• Is there a company with retained earnings that might complicate a sale structure?

These are structural questions that take months to address — not days. If your structure needs adjusting ahead of a sale, the earlier you know, the more options you have.

6. Note the May 12 federal budget date

The 2026–27 Federal Budget is scheduled for May 12, 2026.

Treasurer Chalmers has confirmed there will be tax changes in the budget, and CGT reform is actively being discussed. The Spender parliamentary white paper proposed reducing the CGT discount from 50% to 30%. Whether that proposal progresses is unclear, but uncertainty is itself a planning problem.

If you're planning to sell in FY2026 (before June 30), you may benefit from acting under current rules before any budget announcements change the landscape. If you're planning a FY2027 sale, the budget could materially affect your after-tax outcome.

Either way: get a valuation estimate now, so you know what you're working with.

The EOFY 2026 action list

To summarise:

1. Confirm CGT concession eligibility — check MNAV and active asset status now
2. Act on the $20,000 write-off by June 30 — last year at this threshold
3. Review super strategy before Division 296 — starts July 1, 2026
4. Get 3 years of clean financials ready — including YTD management accounts
5. Review your entity structure — months to fix, not days
6. Watch the May 12 budget — CGT and other changes may affect timing
7. Get a valuation estimate — know your number before any of this matters

None of this requires you to have decided to sell. But if you're in the "sometime in the next few years" window, the steps above are worth taking now — when you have time, options, and the full set of current-law concessions available to you.

Frequently asked questions

Does the financial year end matter if I'm selling my business?

Yes. Several tax concessions, super contribution strategies, and write-off opportunities are tied to the June 30 financial year end. If you're planning a sale in the next 6–18 months, actions taken before June 30 can materially affect your after-tax outcome.

Can I use the small business CGT concessions to reduce tax on the sale?

Yes, if you qualify. The four small business CGT concessions (15-year exemption, 50% active asset reduction, retirement exemption, and rollover relief) can significantly reduce or eliminate CGT on a business sale. Eligibility depends on turnover, net asset value, and the nature of the asset sold.

What is the instant asset write-off deadline for 2026?

The $20,000 instant asset write-off for eligible small businesses (turnover under $10M) ends June 30, 2026. Assets must be purchased and installed ready for use by that date.

Should I time my business sale to fall before or after June 30?

It depends on your personal tax situation, the CGT concessions available to you, and your super balance. Get advice specific to your structure before signing heads of agreement.

What happens to Division 296 super tax from July 1, 2026?

From July 1, 2026, individuals with superannuation balances above $3 million will pay an additional 15% tax on earnings (including unrealised gains) above that threshold. This affects owners planning to contribute sale proceeds into super.