What is a fiscal year?
A fiscal year (also known as a financial year) is a 12-month accounting period that a business or government uses for financial reporting, tax purposes, and budgeting. Unlike the standard calendar year, which runs from 1 January to 31 December, a fiscal year can begin and end on any date — depending on the organisation’s operational needs and regulatory requirements.
The fiscal year in Australia
In Australia, the standard financial year runs from 1 July to 30 June the following calendar year. This period was established in 1851 and is used by most Australian businesses, individuals, and government entities for ATO tax reporting purposes. For example, the financial year beginning 1 July 2025 and ending 30 June 2026 is referred to as FY2026 or FY25/26.
All Australian taxpayers — individuals and businesses — are required to lodge their tax returns after 30 June each year, with most standard returns due by 31 October.
Why the fiscal year matters
The fiscal year determines the timeframe for:
- Lodging income tax returns and Business Activity Statements (BAS)
- Preparing annual financial statements (P&L, balance sheet, cash flow statement)
- Reviewing business performance, budgeting, and strategic planning
- Calculating annual turnover thresholds (e.g., for GST registration)
Can a business choose a different fiscal year?
While the standard Australian financial year is July–June, some companies — particularly multinational corporations — may apply to the ATO to use a substituted accounting period that aligns with their global reporting calendar. However, this requires ATO approval and does not apply to most small to medium-sized businesses.