As the financial year draws to a close, use these prompts to ensure both you and your organisation are prepared for EOFY requirements across tax, payroll and reporting.

With July just around the corner, now is an ideal time for HR to take stock of their tax position before lodging a return.

“HR professionals are generally diligent record keepers in their professional lives, but they can fall into the same traps as other employees when it comes to tax,” says Mark Chapman, Director of Tax Communications at H&R Block.

What’s more, HR practitioners don’t just need to consider their own tax return – they also play a crucial role in ensuring their organisations are prepared for tax season. 

That means ensuring payroll processes are finalised, employees are aware of key timesheeting and expense deadlines, and reporting obligations are completed accurately.

The prompts below will help you check both your tax return and your organisation’s EOFY readiness in a clear, structured way before the financial year closes.

Questions to ask before submitting your individual tax return

Before lodging your individual tax return, it’s worth completing a final check to ensure your return reflects the full picture of your working year, says Chapman.

1. Have I captured every source of income I earned this year?

One of the top employment trends emerging in 2026 is the rise of the ‘portfolio career’ – a working style that combines multiple part-time roles, freelance gigs, consulting work and/or business ventures. 

Recent research from Randstad shows 34 per cent of the Australian workforce would prefer a portfolio career to relying on a single employer.

While this model presents exciting opportunities for career growth and diversification, it also creates additional considerations at tax time.

“Many HR professionals now undertake consulting assignments, board roles, training engagements or speaking opportunities outside their primary employment,” says Chapman. “These additional income streams are often overlooked or incorrectly reported.”

At the same time, the ATO’s growing data-matching capabilities mean income from multiple sources is becoming more visible, he adds. It’s therefore more important than ever to ensure every deduction is legitimate and supported by clear records.

To ensure everything is captured, he says HR should be aware that:

• All additional income must be declared.
• Business-related expenses may become deductible.
• GST registration may be required if turnover exceeds the registration threshold.
• PAYG installment obligations may arise in future years.

2. What did I spend this year to maintain my professional expertise?

According to Chapman, professional development is one of the most overlooked deductions among those working in HR.

“HR practitioners frequently incur costs associated with maintaining professional knowledge and staying current with employment law, workplace relations, leadership and organisational development trends,” he says.

“Many taxpayers focus on larger expenses and forget about the smaller deductions which can add up over the course of a year.”

Potentially deductible expenses might include: 

• Membership fees for professional associations (such as AHRI membership)
• HR conferences, seminars and webinars (such as AHRI’s National Convention and Exhibition)
• Professional journals and industry publications
• Books and technical reference materials used for work-related purposes.
• Continuing professional development courses
• Employment law and workplace relations training.

In order to be tax-deductible, the study needs to maintain the specific skills or knowledge required in the taxpayer’s current employment, says Chapman.

“For example, an HR manager undertaking advanced studies in employment law, industrial relations, organisational psychology or leadership would often have a strong basis for claiming those costs because the study directly relates to their current role,” he says.

“However, expenses are generally not deductible where the study is designed to help someone obtain a new occupation or move into a substantially different career.”

3. Can I substantiate my work-from-home claims?

HR practitioners can generally claim expenses incurred from working from home – such as energy, office equipment and stationery – using either the fixed-rate method or the actual cost method. 

The fixed-rate method, which allows taxpayers to claim 70 cents for every hour worked from home, is generally the simplest method as it requires fewer complex calculations. However, Chapman stresses that this method will still require individuals to provide evidence to substantiate their claim.

This evidence should include: 

• A record of all hours worked from home throughout the year.
• Evidence of expenses covered by the fixed rate, such as electricity, internet, mobile phone and stationery costs.
• Records demonstrating they incurred those expenses.

“HR professionals are often well placed to maintain accurate records because many already work within organisations that have formal remote working arrangements and electronic attendance records,” he says.

Reducing risk at EOFY

Tax time sometimes creates anxiety among employees across the board who worry about slipping up on small details. 

However, Chapman says HR should have peace of mind provided they can confidently answer ‘yes’ to the question: Have I included every source of income, and can I substantiate every deduction?

“The ATO is far more likely to challenge deductions that cannot be substantiated and income that has not been disclosed than genuine mistakes involving complex tax law,” he says.

“Before lodging, taxpayers should take a final moment to review all income sources, check that their deductions have a direct work-related connection and ensure they have retained the necessary records.”

“HR professionals are often well placed to maintain accurate records because many already work within organisations that have formal remote working arrangements and electronic attendance records.” – Mark Chapman, Director of Tax Communications, H&R Block

Questions to ask within your organisation before tax time

EOFY is also a critical period for organisations to ensure payroll, compliance and reporting processes are properly finalised.

Use the prompts below to ensure your business avoids common pitfalls at tax time.

1. Is our business prepared for changes to employee entitlements in FY27? 

EOFY should prompt HR teams to review upcoming legislative and policy changes that will affect workforce planning, remuneration and entitlements in the next financial year.

An important example is payday super. Starting from 1 July this year, businesses will be required to pay superannuation at the same time as wages or salaries, swapping out the current quarterly model for a pay-cycle-aligned approach.

This will require employers to review their superannuation processes, especially any bounce-backs due to incorrect fund details, as well as ensuring alignment between payroll, finance and leadership. Read more about preparing for payday super here.

Another relevant change is the recently announced minimum wage increase. From July 2026, National Minimum Wage will be $1004.90 per week, or $26.44 per hour (a six per cent increase since last year).

This change will flow on to next year’s payroll costs, tax withholding and reporting cycles, so HR should ensure it is reflected in reporting from 1 July this year.

Learn more about regulatory changes coming into effect during the next financial year in this infographic.

2. Are employees across the organisation aligned on EOFY deadlines and expectations?

To ensure a smooth EOFY process, HR teams need to make sure employees, managers and payroll are working to the same timelines and understand what is required of them.

Three key steps to achieve this are:

• Sharing communication of the EOFY payroll cut-off with employees early, with reminders to submit any claims (expenses, timesheets, leave documents) before the final pay run.
  
• Conducting a workforce planning check-in with business units to confirm FY27 resourcing needs, budget alignment and any forecasted skill gaps.
  
• Collaborating with business leaders to conduct meaningful performance reviews and goal setting for all teams. As part of this process, notify employees about performance reviews, any remuneration or bonus outcomes, to ensure changes are documented and auditable.

Clear, consistent messaging across HR, finance and leadership helps reduce last-minute confusion and ensures EOFY activity is processed accurately and on time.

3. Have we captured the full picture for year-end reporting? 

Beyond payroll, HR teams are also often responsible for consolidating workforce insights to inform executive and board reporting. 

This may include turnover data, gender equity reporting, DEI metrics and workplace health and safety indicators.

HR should consider whether the organisation has a clear and reliable picture of the state of the workforce by confirming that:

• Workforce data is consistent across HRIS, payroll and finance systems, with no conflicting headcount or remuneration figures. Read more on consolidation of HR workforce data here.
• Key metrics such as turnover, absenteeism and engagement are calculated using consistent definitions across the organisation.
  
• Mandatory reporting requirements, such as gender pay gap reporting, are fully prepared and supported by accurate data.
  
• Year-on-year trends can be clearly explained.
  
• Data governance processes are in place to ensure workforce information is audit-ready and defensible.

EOFY is a good opportunity to review reporting processes to ensure they’re not only accurate, but also meaningful for strategic decision-making in the year ahead.

🧰 HR’s career resource toolkit

• Learning: Plan your professional development for the coming financial year by checking out AHRI’s suite of courses, covering everything from how to have a difficult conversation through to advanced workforce planning.
• AHRI Membership: Become an AHRI member to strengthen your HR expertise through discounted training, exclusive webinar content and professional guidance tailored to every stage of your career. Membership fees may be tax deductible.
• Certification: Take the next step in your career this year by pursuing your CPHR post nominal. Learn more about HR Certification today.
• Resource: Find more information on preparing your business for the end of financial year in this infographic.