The 2025-2026 Federal Budget introduces significant tax changes affecting Australian businesses. From instant asset write-offs to superannuation guarantee increases, here is what you need to know to plan effectively.
The instant asset write-off threshold has been increased from $20,000 to $30,000 for eligible businesses with an aggregated annual turnover of less than $10 million.
Eligible businesses can immediately deduct the business portion of the cost of eligible assets costing less than $30,000. This applies to assets:
The instant asset write-off applies to most depreciating assets including:
From 1 July 2026, the superannuation guarantee (SG) rate will increase from 11% to 11.5%. This is part of the legislated increase path that will see the SG rate reach 12% by 1 July 2027.
This increase affects your payroll costs. For an employee earning $100,000 per year:
Exacc will automatically update SG rates on 1 July 2026, so your payroll calculations remain accurate without manual intervention.
The Technology Investment Boost has been extended until 30 June 2027, providing a 20% bonus tax deduction for eligible expenditure on business expenses and depreciating assets that support digital adoption.
Portable payment devices, cyber security systems, computer and cloud-based services
Subscriptions to cloud-based services, web-based applications, data backup and cloud storage
The Skills and Training Boost has been increased from 10% to 20% for eligible expenditure on external training provided to employees by registered training providers.
The company tax rate for small and medium businesses (aggregated turnover less than $50 million) remains at 25% for the 2025-2026 income year.
The small business income tax offset for unincorporated businesses also remains at 16% of the basic income tax liability that relates to small business income, up to a maximum of $1,000.
Businesses can choose to vary their PAYG instalments if their current year income is expected to differ significantly from prior year income, potentially improving cash flow.
The Fringe Benefits Tax exemption for electric vehicles has been extended, continuing the incentive for businesses to transition to zero and low emissions vehicles.
The Research and Development Tax Incentive rates remain unchanged, with the refundable tax offset for eligible entities with aggregated turnover less than $20 million continuing at the base rate plus 18.5 percentage points.
Consider bringing forward asset purchases under $30,000 to take advantage of the instant asset write-off before the end of the financial year.
Factor the 11.5% SG rate into your cash flow planning from 1 July 2026. Calculate the additional cost for your payroll.
Take advantage of the Technology Investment Boost for eligible digital expenses incurred before 30 June 2027.
Invest in employee training through registered providers to claim the 20% Skills and Training Boost.
Speak with your tax adviser or accountant to understand how these changes specifically affect your business and tax planning strategies.
Exacc automatically updates for all legislative changes, ensuring your business remains compliant without manual intervention.
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