Financial Year Australia: What It Is and How It Works
The financial year Australia uses runs from 1 July to 30 June the following year, not the calendar year. The ATO calls it an income year and labels it as a span, such as 2025-26. Your tax return covers everything earned in that period, and lodgment generally opens once the financial year ends on 30 June.
What Is the Financial Year Australia Uses for Tax?
The financial year Australia uses for tax runs from 1 July to 30 June the following year, and the Australian Taxation Office (ATO) also calls this period the income year. This is different from the calendar year, which runs 1 January to 31 December. The financial year Australia uses applies to individuals, most companies, superannuation funds and the ATO's own reporting, rather than being specific to one type of taxpayer. Everything you earn, and most things you can claim, are grouped by which financial year they fall into, not by the calendar year.
How Is the Australian Financial Year Labelled?
The ATO labels each financial year as a span of two calendar years, such as 2025-26 for the year running from 1 July 2025 to 30 June 2026. The ATO's own resident tax rates page uses this exact style, heading its rates table "Resident tax rates 2026-27" for the year starting 1 July 2026. You will see this same 2025-26 or 2026-27 style used across myGov, your income statement, your notice of assessment and most ATO correspondence, so it is worth getting used to reading dates this way rather than as a single year number.
Feature | Financial year (Australia) | Calendar year |
Starts | 1 July | 1 January |
Ends | 30 June | 31 December |
Also called | Income year | Not used for tax |
Used for | Tax returns, BAS, super reporting | Everyday dates |
Why Does the Financial Year Run From July to June?
The financial year Australia uses does not line up with the calendar year, and this is simply the reporting period tax law sets, rather than something tied to a recent change. What matters practically is that your income, deductions and offsets are always grouped by this 1 July to 30 June window, so a payment received on 29 June and one received on 2 July fall into two different financial years for tax purposes, even though only a few days apart.
When Can You Lodge Your Tax Return for a Financial Year?
You generally cannot lodge a tax return for a financial year until that year has ended on 30 June, with lodgment typically opening from 1 July. From there, the ATO sets the standard self-lodgment deadline later in the year, and registered tax agents can usually offer their clients an extended deadline beyond that. The exact 2026 dates, including the self-lodge deadline and the extended tax agent deadline, are covered in full in our Tax Time 2026 key dates guide, so this article focuses on how the financial year itself works rather than repeating every date. If you do miss a deadline, our failure to lodge penalty guide explains what happens next.
Does the Financial Year Affect GST and Business Reporting Too?
Yes, the same 1 July to 30 June financial year is also the reporting period behind business activity statements (BAS) and GST reporting. The ATO confirms that a business's GST reporting cycle may be monthly, quarterly or annually depending on its GST turnover, but whichever cycle applies, those reporting periods always sit inside the same financial year used for income tax, so a sole trader's BAS periods and their annual tax return both follow the same 1 July to 30 June year.
How Tax Falcon Helps at the Start of the New Financial Year
Once the new financial year starts on 1 July, Tax Falcon's Turbo Pre-fill connects to the ATO and pulls in your income details automatically, so you are not stuck waiting on paperwork before you can begin. A Standard Tax Return through Tax Falcon is $88, reduced to $25 for a nil return, and is designed to be lodged in around 10 minutes once your pre-fill data is ready, with a certified tax agent reviewing your return before it goes to the ATO. Tax Falcon also saves your details for next year, so the start of each new financial year should be faster than the last. You can see the current services and pricing on the Tax Falcon homepage.
Frequently Asked Questions
When does the financial year start in Australia?
The Australian financial year starts on 1 July each year and ends on 30 June the following year, which is different from the 1 January to 31 December calendar year.
What is the difference between a financial year and a calendar year in Australia?
A financial year in Australia runs 1 July to 30 June and is used for tax and most business reporting, while a calendar year runs 1 January to 31 December and is used for everyday dates.
How is the Australian financial year written, like 2025-26?
The ATO labels a financial year as a span covering both calendar years it touches, such as 2025-26 for the year from 1 July 2025 to 30 June 2026, as shown on the ATO's own tax rates pages.
Can I lodge my tax return before the financial year ends?
No, you generally cannot lodge a tax return for a financial year until it has ended on 30 June, with lodgment for that year typically opening from 1 July.
Does the financial year affect GST and BAS reporting as well as tax returns?
Yes, GST and business activity statement reporting periods also sit inside the same 1 July to 30 June financial year, whether a business reports monthly, quarterly or annually.
