Tax & Compliance
Tax Changes Small Business Owners Need to Know
The changes that actually move the needle for a small business, each one dated so you can see when it applied to you, 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 together.
Key Takeaways
- Super guarantee is 12% from 1 July 2025, its final legislated step.
- The $20,000 instant asset write-off is law beyond 2025-26. The bill passed on 26 August 2026 and the ATO's limits table no longer carries an end date, so the $20,000 limit still applies.
- Payday Super started 1 July 2026, super paid every payday, not quarterly.
Tax rules shift every year, and a few of the recent changes matter more than others if you run a small business. Here is the plain-English rundown, each item dated so you can see when it started applying to you, and every figure checked against the ATO.
1. Super guarantee is 12%, from 1 July 2025
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, and there is a full guide to Payday Super here.
3. The $20,000 instant asset write-off, settled 26 August 2026
Eligible small businesses (aggregated turnover under $10 million) can claim an immediate deduction for assets costing less than $20,000 each. The asset has to be installed and ready for use by 30 June of the year you claim it in, not simply ordered or paid for.
This was unsettled for most of 2026, and it is now settled. The measure announced in the 2026-27 Budget passed as the Treasury Laws Amendment (Tax Reform No. 2) Act 2026 and received assent on 26 August 2026. Its Schedule 2 is titled "$20,000 instant asset write-off for small business entities".
The ATO rewrote its limits table two days later. The top row now reads "on or after 1 July 2023, $20,000", with no end date on it, where it previously stopped at 30 June 2026. So a business with aggregated turnover under $10 million that uses the simplified depreciation rules can still deduct assets costing under $20,000 each, in the year each one is installed and ready for use.
One thing worth saying plainly: a threshold that has been extended year by year since 2015 can be changed again. If you are weighing up a significant purchase, ask me to confirm the limit for the year you will actually claim it in, rather than assuming this year's answer holds.
4. Company tax rates: 25% or 30%
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 for that same year its aggregated turnover is under $50 million and no more than 80% of its income is passive: interest, rent, royalties, dividends and franking credits, and net capital gains. Otherwise, the rate is 30%. The capital gain is the one that catches people: sell a business asset at a profit and a company that has always paid 25% can land on 30% for that year. There is more on what that means day to day on the company accounting page.
5. Super contribution caps
The concessional (before-tax) contributions cap was $30,000 for 2025-26, though if your total super balance was under $500,000 at 30 June last year, you may be able to use unused cap from up to five previous years on top. 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. The cap is reviewed and indexed periodically, so check the figure for the year you are actually contributing in.
A standing 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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