Picture this: it's late June 2026, and you're frantically rifling through shoeboxes stuffed with crumpled receipts, trying to decipher whether that coffee meeting six months ago was actually deductible. Your Spotify playlist is on repeat, but instead of creative inspiration, you're spiralling into tax-time panic. Sound familiar?
Here's the reality check – approximately 80% of people in the arts work on a freelance or self-employed basis, yet research from Hnry shows the average sole trader misses out on over $5,500 in unclaimed expenses annually. That's not just pocket change; that's new equipment, software upgrades, or a solid chunk of your next creative project. The kicker? Only 64% of freelancers claim all the business expenses they're entitled to, with 33% unsure what they can even claim.
The 2025-26 financial year wraps up on 30 June 2026, and if you're a creative professional in Australia, this isn't just another date on the calendar – it's your opportunity to amplify your tax position, protect your hard-earned income, and set yourself up for success in the next financial year. Whether you're a photographer tracking down equipment receipts, a musician tallying instrument expenses, or a designer drowning in software subscription invoices, this comprehensive checklist will help you hit all the right notes before EOFY.
Let's cut straight to the setlist of dates you absolutely cannot miss. Miss these deadlines, and you're looking at penalties that'll make your wallet weep.
Your business structure can amplify your financial performance or drain your resources. Most creatives begin as a sole trader due to the ease of setup and complete creative control, despite the risk of unlimited personal liability. As your income climbs, transitioning to a company (Pty Ltd) structure might save tax via a lower flat corporate rate and offer limited liability protection. For those with significant income or family aspects, a trust structure offers flexibility in income distribution and potential tax savings.
Many creatives miss out on key deductions. Equipment and technology purchases under $20,000 can be fully claimed through the instant asset write-off, while items over this threshold enter a depreciation pool. Home studio expenses can be claimed using the fixed-rate method or the actual cost method if the space is exclusively for business. Don’t overlook professional development expenses, travel (when correctly logged), and marketing or networking expenses such as website and social media costs. However, personal living expenses, entertainment (unless for verifiable research), and similar costs remain non-claimable.
For the 2025-26 financial year, each asset under the $20,000 threshold can be claimed immediately if it’s installed and ready for use by 30 June 2026. This powerful deduction applies to both new and second-hand items. Act before the deadline because after 30 June 2026, the threshold drops to $1,000 unless further extended by legislation.
If you employ staff, superannuation is a mandatory expense. The Superannuation Guarantee for the 2025-26 financial year is set at 12% of ordinary time earnings. Key quarterly deadlines exist, and from 1 July 2026, the system shifts to "payday super," aligning super payments with salary cycles. Self-employed creatives aren’t obligated to pay super for themselves but can benefit from voluntary contributions up to $30,000 annually for tax deductions.
Record keeping is essential. Ensure all accounts are reconciled and asset registers updated. GST-registered businesses must verify BAS lodgements, and those employing staff need to finalise payroll details including STP and superannuation. Organise your deductions by category, and ensure you keep digital or physical records for at least five years, adhering to ATO guidelines.
The weeks leading up to 30 June 2026 are critical. Consider prepaying expenses, making timely super contributions, and purchasing assets under the $20,000 threshold to maximise deductions. Assess your business performance, consider restructuring if needed, and prepare comprehensive records to facilitate a smooth transition into FY2026-27.
As one financial year closes, setting strategic goals for the next is essential. Update your business forecasts, adjust to changes like the payday super system, and align your expense budgets with your creative ambitions. A solid financial foundation allows greater creative freedom and encourages smart risk-taking.
This checklist isn’t just about compliance; it’s about amplifying your financial future. With key deadlines and strategies in place, you’re better positioned to claim all eligible deductions, manage tax obligations, and gear up for the coming year with confidence. Embrace these steps, consult with professionals where necessary, and turn your EOFY preparation into an opportunity for growth.
Assets purchased after 30 June 2026 cannot be claimed in the 2025-26 financial year under the instant asset write-off. Additionally, from 1 July 2026 the threshold drops from $20,000 to $1,000 (unless further extended). Assets must be not only purchased but also installed and ready for use by 30 June 2026 to qualify.
GST registration is mandatory once your turnover reaches $75,000 (or $150,000 for non-profits). If registered, you must charge 10% GST on taxable supplies, reconcile GST transactions, lodge Business Activity Statements regularly, and prepare your final quarterly BAS by 28 July 2026. While it adds administrative tasks, it also allows you to claim GST credits on business purchases.
Yes, but the claim depends on how exclusively the space is used for business. With the fixed-rate method, you can claim 67 cents per work hour for additional running expenses. Alternatively, if your home studio is exclusively used for business, you can claim a percentage of actual expenses such as rent, mortgage interest, utilities, and insurance based on the area used.
As a self-employed sole trader or partner, you’re not legally required to pay superannuation for yourself, though voluntary contributions up to $30,000 annually are tax-deductible. However, if you hire employees, you must pay Superannuation Guarantee contributions (12% of ordinary time earnings) according to set quarterly deadlines, with a shift to 'payday super' from 1 July 2026.
You must keep all business records for at least five years from the date of lodgement. The ATO accepts both physical and digital records, provided digital records are readable, reproducible, and securely backed up. For smaller expenses, diary notes may be acceptable under certain thresholds.
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