Applying for a substituted accounting period (SAP)

How to apply for a substituted accounting period (SAP) or to change back to a normal accounting period ending 30 June.

Last updated 27 August 2026

Overview of SAP

You can now apply for a SAP through Online services.

Apply for a SAP to:

adopt an accounting period ending on a date other than 30 June, or
revert to a standard accounting period ending 30 June.

Apply for a SAP through Online services

Registered tax agents

Apply using Online services for agents:

Select a client.
Select Lodgments.
Select Client forms.
Select Substituted accounting period (SAP) from the Client forms list.

Businesses

Apply using Online services for Business:

Select Lodgments.
Select Reports and forms.
Select Substituted accounting period (SAP) from the Reports and forms list.

Note: The form is only available in online services where you have certain permissions. Find out more about permissions for business and tax professions in online services.

The contact person for the application must be a registered tax agent or other person authorised to act for the entity regarding their income tax obligations. Ensure that the contact person for the application has registered their name and position with us. Find out how to update your details.

The form instructs you to attach additional information with your application to ensure it can be properly considered and processed in a timely manner.

We may contact you if further information is required to process your SAP application. We'll aim to let you know about the outcome in writing within 28 days of receiving your application.

You can refer to the Help content on the online application page for more guidance on completing your application.

Find out more about the personal information we collect from you.

Can't apply through online services?

Applying through online services is the preferred method of application.

If you can't apply for a SAP through online services, you can apply using the Application for a substituted accounting Substituted Accounting Period (SAP) (NAT5087).

Detailed instructions

Reason for a SAP and supporting evidence

Law Administration Practice Statement PS LA 2007/21 Substituted Accounting Periods provides comprehensive guidance on the circumstances which warrant the granting of a SAP.

SAPS are granted where the entity can demonstrate its circumstances take the case out of the ordinary run.

These circumstances may include:

the need to synchronise your balance dates with the controlling entity of your economic group or the entity that holds the majority of your membership interests
the wish to align your balance date with the income tax consolidated group you have just exited because your accounting systems are already set up to meet the former income tax consolidated group’s reporting requirements and it will be too costly to adjust your systems to a new balance date
an ongoing event, industry practice, business driver or other ongoing circumstance that makes 30 June impractical as a basis to calculate taxable income. This would include difficulties with ascertaining inventory for stock valuations, and having multiple financial reporting requirements (for example, a franchise to a franchisee).

Circumstances generally not outside the ordinary run include:

strata or owners corporations wishing to align their balance date with their audit date
companies wishing to align their balance date with a change of company financial year election sent to the Australian Securities & Investment Commission.

It is not envisaged that the circumstances of individuals would fall outside the ordinary run.

Subsidiary members of income tax consolidated groups do not need to apply for a SAP as they don't have income tax reporting obligations.

Lodging the form on time

A SAP application should be lodged as soon as possible. To ensure the lodgment date can be updated in ATO systems before it passes, a SAP application should be lodged at least 28 days before the earlier of either:

the due date for lodgment of the income tax return for the current accounting period
the due date for lodgment of the tax return for the proposed new accounting period.

Retrospective or out of date applications may be accepted in limited circumstances. For more information see PS LA 2007/21.

Transitional periods – examples

Where an entity is allowed to adopt a SAP there is a change to the end date of its accounting period, which results in a transitional period of more or less than 12 months.

The application form automatically calculates the end of the transitional period.

First time lodgers

For entities that adopt a SAP for their first lodgment of an income tax return, the transitional period will:

begin on the date the entity started trading
end on the first occurrence of the SAP balance date.

The transitional period for a new entity must be 12 months or less.

Example: first time lodger requesting a 31 December balance date (early balancer)

Entity A started trading on 1 January 2026 and requests a 31 December balance date.

Its transitional year will be from 1 January 2026 to 31 December 2026 (12 months exactly). This will constitute the 2027 tax year.

End of example

Example: first time lodger requesting a 31 October balance date (late balancer)

Entity B started trading on 27 September 2026 and requests a 31 October balance date.

Its transitional year will be from 27 September 2026 to 31 October 2026 (one month and 4 days). This will constitute the 2026 tax year.

End of example

Existing entities

For existing entities that have lodged previous income tax returns (not including return not necessary), the length of the transitional period is determined by the table in paragraph 4F of PS LA 2007/21.

The application form automatically calculates the transitional period when you enter the prompted dates and tick the relevant box describing your entity’s transition on the application form.

Example: entity moving from a 30 June balance date to a 31 December balance date (early balancer)

Entity A balances on 30 June 2026 and requests a 31 December balance date.

Its transitional year will be from 1 July 2026 to 31 December 2026 (6 months), constituting the 2027 tax year.

End of example

Example: entity reverting from a 31 December balance date to a 30 June balance date

Entity C balances on 31 December 2025 and requests a 30 June balance date.

Its transitional year will be from 1 January 2026 to 30 June 2027 (18 months), constituting the 2027 tax year.

End of example

Example: entity moving from a 31 March balance date to a 30 September balance date (late balancer)

Entity B balances on 31 March 2026 and requests a 30 September balance date.

Its transitional year will be from 1 April 2026 to 30 September 2027 (18 months), constituting the 2027 tax year.

End of example

Example: entity reverting from a 31 December balance date to a 30 June balance date)

Entity C balances on 31 December 2025 and requests a 30 June balance date.

Its transitional year will be from 1 January 2026 to 30 June 2027 (18 months), constituting the 2027 tax year.

End of example

Example: entity moving from a 31 October balance date to a 31 December balance date (entity 'misses' a year - early balancer)

Entity D balances on 31 October 2025 and requests a 31 December balance.

This would ordinarily result in a 2-month transitional period, which is acknowledged by the Commissioner of Taxation as an inconveniently short transitional period.

Per paragraph 4G of PS LA 2007/21, its transitional year will instead be from 1 November 2025 to 31 December 2026, constituting the 2027 tax year. It will therefore ‘skip’ the 2026 income year.

End of example

Entities exiting consolidated groups

Entities exiting income tax consolidated groups retain the balance date that they had before entering the income tax consolidated group. As such, the table in paragraph 4F of PS LA 2007/21 applies based on their prior balance date.

If an entity exiting an income tax consolidated group seeks to lodge for a period from their date of exit until their requested SAP, the transitional period may occur while the entity remains in the income tax consolidated group. As the entity does not have income tax obligations at this time, the SAP will only come into effect on exit. The following 2 examples demonstrate this.

Example: entity exiting a consolidated group (early balancer)

Entity A balances on 30 June prior to entering an income tax consolidated group. It exits the income tax consolidated group on 23 May 2026. It subsequently requests a 31 December balance date.

Ordinarily, applying the table in PSLA 2007/21, Entity A is required to lodge a return as a standalone entity for the period from 23 May 2026 to 30 June 2026, constituting the 2026 tax year. It would then lodge a return for the transitional period from 1 July 2026 to 31 December 2026, constituting the 2027 tax year. This is because a transitional period of 6 months applies when moving from a 30 June to a 31 December balance date.

Entity A however wishes to lodge for a period from 23 May 2026 to 31 December 2026. To accommodate this, Entity A requests a transitional period of 1 July 2025 to 31 December 2025. The following tax year for Entity A is from 1 January 2026 to 31 December 2026, constituting the 2027 tax year.

A granting of this SAP ensures that when Entity A exits the income tax consolidated group, its first tax return as a standalone entity is for its requested period. This period effectively starts on exit of the income tax consolidated group on 23 May 2026 (being the day it resumes its income tax obligations) up to its requested SAP of 31 December 2026.This constitutes its 2027 tax year.

End of example

Example: entity exiting a consolidated group (late balancer)

Entity B balances on 30 June before entering an income tax consolidated group. The group balances on 30 November. When Entity B leaves the group on 1 June 2026, it retains its 30 June balance date. Entity B then requests a 30 November balance date as its systems are currently set up to report on that basis.

The table in PSLA 2007/21 states that there is a 17-months transitional period when moving from a 30 June balance date to a 30 November balance date. There are 2 options available to Entity B, that can either:

lodge a 2026 return for the period ending 30 June 2026 (consisting of one month) as this is its current balance date, before implementing a 17-month transitional period from 1 July 2026 to 30 November 2027, constituting the 2027 year; or
request a transitional period from 1 July 2025 (while Entity B is in the income tax consolidated group) to 30 November 2026, constituting the 2026 year. This gives Entity B an effective reporting period of 1 June 2026 to 30 November 2026 for the 2026 tax year.

End of example

Find information for taxpayers with a substituted accounting periods.

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