Tax Changes Small Businesses Need to Know in 2025-26

Tax rules shift every year, and a few changes in the 2025-26 financial year matter more than others for small business owners. Here's a plain-English rundown, every figure below is checked against the ATO.

1. Super guarantee is now 12%

The super guarantee (SG) rate rose to 12% from 1 July 2025, the last of the legislated increases.¹ If you employ staff, make sure your payroll is using the right rate on every pay run.

2. Payday Super is coming (1 July 2026)

From 1 July 2026, employers will pay super at the same time as wages rather than quarterly, and it must reach the employee's fund within 7 business days of payday.² It's worth preparing your payroll and cash flow now, we've written a full guide to Payday Super.

3. The $20,000 instant asset write-off

Eligible small businesses (aggregated turnover under $10 million) can claim an immediate deduction for assets costing less than $20,000 each for the 2025-26 year. The asset must be installed and ready for use by 30 June 2026.³ From 1 July 2026, this threshold is currently legislated to drop back to $1,000 unless it's extended again, so if you're planning a purchase, timing matters.

4. Company tax rates

If you run a company, the rate you pay depends on whether you're a "base rate entity". A company is a base rate entity, and pays the lower 25% rate, if its aggregated turnover was under $50 million and no more than 80% of its income is passive (interest, rent, dividends and the like). Otherwise, the rate is 30%.⁴

5. Super contribution caps

The concessional (before-tax) contributions cap is $30,000 for 2025-26, though you may be able to contribute more using unused cap amounts carried forward from prior years.⁵ If your combined income and contributions exceed $250,000, Division 293 applies an extra 15% tax on some of your contributions, worth planning around if you're a higher earner.

A quick reminder on GST

If your turnover reaches $75,000 (or you expect it to), GST registration is compulsory, and that means lodging BAS. Register too late and you can end up owing GST out of your own pocket, so it's worth watching the threshold as you grow.

None of these should be a nasty surprise if you're planning ahead. If you'd like to know exactly how they land for your business, that's what a strategy session is for.

Travis Krantz, CPA

Registered Tax Agent and founder of Summit Tax. Over a decade of experience helping small business owners take control of their finances.

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