Tax & Compliance
Tax Changes Small Businesses Need to Know 2025-26
Five changes from the 2025-26 year that actually move the needle for a small business, with every figure checked against the ATO.
Not sure how these affect you? Book a free strategy session (opens in new window) and we'll go through them with you.
Key Takeaways
- Super guarantee is now 12%, its final legislated step.
- The $20,000 instant asset write-off applied for 2025-26, and is legislated to drop to $1,000 from 1 July 2026.
- Payday Super started 1 July 2026, super paid every payday, not quarterly.
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. If you employ staff, make sure your payroll is using the right rate on every pay run.
2. Payday Super (from 1 July 2026)
From 1 July 2026, employers 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. It's worth getting your payroll and cash flow lined up, 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) could claim an immediate deduction for assets costing less than $20,000 each for the 2025-26 year. The asset had to be installed and ready for use by 30 June 2026. From 1 July 2026, this threshold is 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%.
5. Super contribution caps
The concessional (before-tax) contributions cap was $30,000 for 2025-26, though you may be able to contribute more using unused cap amounts carried forward from prior years. 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.
Sources
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