What is a financial year and when does it start for Australian clubs?

If you've just taken over as treasurer, "financial year" is one of those terms that gets thrown around constantly but nobody ever really explains. Here's what it actually means for your club, in plain English.

What is a financial year?

A financial year is simply a 12-month accounting period. Instead of using the calendar year (January to December), most Australian organisations use a financial year that runs from 1 July to 30 June. This is the standard period used by the Australian Tax Office (ATO) and is what most clubs and not-for-profits follow.

At the end of each financial year, you close off your books, prepare your financial reports, and start fresh with a clean set of accounts for the next year. Any surplus or deficit from the year carries forward to the new year as your opening balance.

When does the Australian financial year start?

For most Australian organisations — including the vast majority of community clubs, sporting associations and not-for-profits — the financial year runs:

Some organisations use a different financial year — particularly those aligned with a sporting season, school calendar, or calendar year. Common alternatives are:

• 1 January — 31 December — calendar year, sometimes used by Lions, Rotary and international organisations
• 1 April — 31 March — less common, sometimes used by organisations aligned with UK or international reporting periods
• 1 October — 30 September — used by some sporting bodies aligned with their playing season

Your club's constitution or rules document will usually specify which financial year applies. If it doesn't, the standard 1 July start is the safe default.

What does the financial year mean for your treasurer?

As treasurer, the financial year is the boundary around your reporting responsibilities:

• All income and expenses are recorded within a financial year — every transaction belongs to a specific year
• Your AGM report covers one financial year — typically the year just ended (e.g. FY2024/25)
• GST and BAS reporting follows the financial year — if your club is GST registered, your BAS periods align with the financial year
• Year end = reset — at 30 June you close the year, your bank balance becomes the opening balance for the new year, and all income/expense accounts reset to zero

What happens at year end?

At the end of your financial year, as treasurer you typically need to:

1. Reconcile all bank accounts — make sure your records match your bank statements
2. Ensure all outstanding invoices and expenses are recorded
3. Prepare a Profit & Loss statement for the AGM
4. If GST registered, lodge your final BAS for the year
5. Hand the books to your accountant if you use one
6. Open the new financial year and carry forward your closing balance

Does my club need to lodge anything with the ATO?

Most small community clubs and not-for-profits are income tax exempt — meaning you don't pay income tax and don't need to lodge an annual tax return. However if your club is registered for GST (generally required if turnover exceeds $150,000/year), you'll need to lodge BAS statements quarterly or annually.

If you're unsure about your club's tax obligations, the ATO's not-for-profit section has clear guidance for community clubs and associations.