The 2025–26 financial year runs from 1 July 2025 to 30 June 2026. Some of the changes from 1 July affect employers and small businesses directly, while others depend on your income, business structure and circumstances. Use this as a planning overview, then confirm the rules that apply to you with the ATO or your tax professional.
Super guarantee increased to 12%
The super guarantee (SG) rate increased from 11.5% to 12% on 1 July 2025. Employers need to use the new rate for salary and wages paid on or after that date, including where the pay period began before 1 July. Check payroll settings, employee classifications and employment arrangements so the correct super is calculated and paid to the right fund on time.
If an employee's package is described as inclusive of super, review the agreement and payroll setup rather than assuming the employer's total cost stays the same. If you are a worker, check your payslip and super account if you are unsure how your contributions are being handled.
Small business instant asset write-off
Eligible small businesses may be able to immediately deduct the business-use portion of an eligible depreciating asset costing less than $20,000. For the 2025–26 income year, the asset must be first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026. The turnover test, simplified depreciation rules, asset exclusions and normal record-keeping requirements still apply. The threshold is assessed per asset, not as one annual spending limit.
An asset that costs $20,000 or more does not qualify for this immediate write-off under the threshold, although other depreciation rules may apply. A deduction is not a rebate for the purchase price: you still need to fund the purchase, and the claim is limited to eligible business use. Keep the invoice, evidence of when the asset was ready for use, and records showing how you calculated the business-use percentage. Check the ATO's current guidance before committing to a purchase, as eligibility depends on the details.
Plan for the year, not just the deadline
Set aside money for income tax, GST and super separately. Reconcile bank transactions regularly, keep receipts and invoices, and review your cash flow before making large purchases or drawings. If you employ staff, budget for the higher SG rate and check that your payroll reports and super payment process are up to date.
The structure you use also matters. A company's tax rate and eligibility for the lower base-rate-entity rate are not the same as an individual's marginal tax rate, and a company is a separate legal entity. Do not assume a headline tax rate tells you how much tax you personally will pay or whether changing structures will save tax.
Before lodging, confirm that income, expenses, payroll, GST and asset records agree with your bank and accounting records. If a rule is unclear, ask before lodging or making a claim. Tax treatment can depend on dates, business use, eligibility and current law; this article is general information, not individual tax advice.