Paying Zakat EOFY | Islamic Zakat End of Financial Year

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Then you will be questioned, on that day, about your blessings (102:8)

End of Financial Year 2025 is here

Many Muslims choose the end of the financial year to calculate and distribute Zakat. While it is an easy reference, Islamically, Zakat is meant to be calculated based on Hijri calendar and not Gregorian Calendar. If you gave Zakat last year June 2024, it may not mean your Zakat anniversary will continue every June. There are 2 options here: If your Zakat was due in Dhul Hijjah last year you would need to pay your Zakat at 2.5% before 26th of June 2025 If your Zakat due date falls after Dhul Hijjah last year but still want to calculate Zakat for 30th June: One may pay Zakat early before the end of the financial year to align with tax purposes. This is based on the authentic hadith where the Prophet ﷺ accepted Zakat in advance from his uncle al ‘Abbas for two years (Abu Dawood, Tirmidhi). This allows individuals to benefit from tax deductions without altering the divine ruling. Give before June 30 to claim a tax deduction this EOFY and reduce your taxable income.

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My business has multiple owners. Who pays Zakat?

Each owner is responsible for paying their share of Zakat based on their ownership percentage. If the business pays it as a whole, the cost can be proportioned among owners.

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Do I Need to Pay Zakat on Superannuation?

❌ No Zakat on the compulsory part of your super. ✅ Yes, on any voluntary contributions. ✅ So, if you are business owner / contractor and you are paying your own Super, that amount is Zakatable

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Do I pay Zakat on shares I own?

If you own shares as a long-term investment with no intention to sell, Zakat is due only on the dividend income. If you own shares to resell for profit, include their market value in your Zakat calculation.

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Is Zakat due on income like bank interest?

❌ No, Zakat is not due on haram income like bank interest or unislamic shares. This money must be disposed entirely, without expecting any reward, as this wealth not considered lawful or pure.

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Can I pre-pay Zakat to align with EOFY?

Yes. If you know your Zakat is due later in the year, you can choose to pre-pay it earlier (like at EOFY). When the time comes, you simply reconcile and adjust if needed.

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Do I pay Zakat on equipment like laptops or office furniture in my business?

No, you do not pay Zakat on fixed assets used to run your business (e.g., equipment, vehicles, premises).

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Do I pay Zakat on properties?

❌No, if you live in the property. ✅ Yes, if it’s rented, you pay Zakat on the net rental income (after deducting fees, taxes, & maintenance). ✅ Yes, if the property is for resale, you must pay Zakat on the property’s market value.

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Should I calculate Zakat on cash saved in an overseas bank?

✅ Yes. Any money you own, whether it's in Australia or overseas, must be included in your Zakat calculation if it’s accessible to you and you’ve had it for one lunar year (hawl).

Click to flip

My business has multiple owners. Who pays Zakat?

Each owner is responsible for paying their share of Zakat based on their ownership percentage. If the business pays it as a whole, the cost can be proportioned among owners.

Click to flip

Do I Need to Pay Zakat on Superannuation?

❌ No Zakat on the compulsory part of your super. ✅ Yes, on any voluntary contributions. ✅ So, if you are business owner / contractor and you are paying your own Super, that amount is Zakatable

Click to flip

Do I pay Zakat on shares I own?

Click to flip

Is Zakat due on income like bank interest?

❌ No, Zakat is not due on haram income like bank interest or unislamic shares. This money must be disposed entirely, without expecting any reward, as this wealth not considered lawful or pure.

Click to flip

Can I pre-pay Zakat to align with EOFY?

Yes. If you know your Zakat is due later in the year, you can choose to pre-pay it earlier (like at EOFY). When the time comes, you simply reconcile and adjust if needed.

Click to flip

Do I pay Zakat on equipment like laptops or office furniture in my business?

No, you do not pay Zakat on fixed assets used to run your business (e.g., equipment, vehicles, premises).

Click to flip

Do I pay Zakat on properties?

Click to flip

Should I calculate Zakat on cash saved in an overseas bank?

✅ Yes. Any money you own, whether it's in Australia or overseas, must be included in your Zakat calculation if it’s accessible to you and you’ve had it for one lunar year (hawl).

Click to flip

My business has multiple owners. Who pays Zakat?

Each owner is responsible for paying their share of Zakat based on their ownership percentage. If the business pays it as a whole, the cost can be proportioned among owners.

Click to flip

Do I Need to Pay Zakat on Superannuation?

❌ No Zakat on the compulsory part of your super. ✅ Yes, on any voluntary contributions. ✅ So, if you are business owner / contractor and you are paying your own Super, that amount is Zakatable

Click to flip

Do I pay Zakat on shares I own?

Click to flip

Is Zakat due on income like bank interest?

❌ No, Zakat is not due on haram income like bank interest or unislamic shares. This money must be disposed entirely, without expecting any reward, as this wealth not considered lawful or pure.

Click to flip

Can I pre-pay Zakat to align with EOFY?

Yes. If you know your Zakat is due later in the year, you can choose to pre-pay it earlier (like at EOFY). When the time comes, you simply reconcile and adjust if needed.

Click to flip

Do I pay Zakat on equipment like laptops or office furniture in my business?

No, you do not pay Zakat on fixed assets used to run your business (e.g., equipment, vehicles, premises).

Click to flip

Do I pay Zakat on properties?

Click to flip

Should I calculate Zakat on cash saved in an overseas bank?

✅ Yes. Any money you own, whether it's in Australia or overseas, must be included in your Zakat calculation if it’s accessible to you and you’ve had it for one lunar year (hawl).

Click to flip

My business has multiple owners. Who pays Zakat?

Each owner is responsible for paying their share of Zakat based on their ownership percentage. If the business pays it as a whole, the cost can be proportioned among owners.

Click to flip

Do I Need to Pay Zakat on Superannuation?

❌ No Zakat on the compulsory part of your super. ✅ Yes, on any voluntary contributions. ✅ So, if you are business owner / contractor and you are paying your own Super, that amount is Zakatable

Click to flip

Do I pay Zakat on shares I own?

Click to flip

Is Zakat due on income like bank interest?

❌ No, Zakat is not due on haram income like bank interest or unislamic shares. This money must be disposed entirely, without expecting any reward, as this wealth not considered lawful or pure.

Click to flip

Can I pre-pay Zakat to align with EOFY?

Yes. If you know your Zakat is due later in the year, you can choose to pre-pay it earlier (like at EOFY). When the time comes, you simply reconcile and adjust if needed.

Click to flip

Do I pay Zakat on equipment like laptops or office furniture in my business?

No, you do not pay Zakat on fixed assets used to run your business (e.g., equipment, vehicles, premises).

Click to flip

Do I pay Zakat on properties?

Click to flip

Should I calculate Zakat on cash saved in an overseas bank?

✅ Yes. Any money you own, whether it's in Australia or overseas, must be included in your Zakat calculation if it’s accessible to you and you’ve had it for one lunar year (hawl).

Your Zakat anniversary is after 30th of June, but you want to claim tax return before 30th June? No problem, pre-pay Zakat to align with EOFY

Close the year with Sadaqah Jaariyah.

Sadaqah

If you would like to close the year with good deeds, you can still do so by giving Sadaqah. At NZF we allocate Sadaqah towards Zakat Education programs, so you get the hassanat of Sadaqa-Jaariyah.

EOFY can be a time for Ethical Financial Review.

Tainted Wealth

EOFY can be a time for financial planning and assess if your income is halal. Check your bank accounts to find out if there are any interest (Riba) accumulated or any doubtful transactions. This can be a time to keep your calendar reminded to review non-Islamic financial means and giving them away as Tainted Wealth.

EOFY is a time to reflect on Responsible Giving.

Missed Zakat

In the past you may have missed giving Zakat and EOFY can be a time for reflection and catching up on giving this debt owed to Allah SWT. We can help you catch up on missed Zakat.

EOFY can be a time for Inventory & Asset Review

Business Owners

Islam is established on the grounds of honesty and accountability. In line with this, EOFY is a time for inventory checking, review and update your asset records, especially for Zakat calculation purpose. If you have not tried already checkout NZF Zakat Calculator, where you can create a login and save your record of assets within your account to be accessible every year if you choose to do so. As Islam promotes transparency and fulfilling legal obligations it is equally important to avoid tax invasion.

Support Gazan refugees in Australia

Establish Islamic budgeting

Assess your next financial year budget / plan. Are there any extravagant things that you are tempted to buy, reflect on does it have any value in the eyes of Allah SWT Encourage goal setting for the next financial year (e.g., saving for Hajj, paying off debts, supporting an orphan or a refugee family from Gaza)

Give Your Zakat

Give to Those Who Have the Right to Your Zakat - Get your Tax Returns by Claiming the donations

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Then you will be questioned, on that day, about your blessings (102:8)

End of Financial Year 2025 is here

Close the year with Sadaqah Jaariyah.

Sadaqah

EOFY can be a time for Ethical Financial Review.

Tainted Wealth

EOFY is a time to reflect on Responsible Giving.

Missed Zakat

EOFY can be a time for Inventory & Asset Review

Business Owners

Support Gazan refugees in Australia

Establish Islamic budgeting

Give Your Zakat

Sign up for news & updates