Digital Business Growth & Strategy Weekly: The 90-Day Scale-Up Sprint for SMEs Ready for Global Expansion

Digital Business Growth & Strategy Weekly: The 90-Day Scale-Up Sprint for SMEs Ready for Global Expansion

TITLE: How to Scale Your Business Globally in 90 Days: A Structured Expansion Sprint

Global expansion becomes far safer when you treat it as a structured operating project rather than a distant ambition. A disciplined, phased approach transforms the chaos of international growth into a manageable, measurable process.

This 90-day scale-up sprint offers a practical route from business assessment to a controlled international launch. You will review your financials, select a viable market, protect cash flow, build compliance processes, and systemise the recurring work your team handles every week. By following this blueprint, you mitigate risk and set the stage for sustainable, profitable growth.

A critical principle: do not try to enter five markets at once. The key to success is building one repeatable expansion model first, proving its viability, and then replicating it elsewhere.

Set One Commercial Outcome Before You Start

Begin your sprint by defining a single, measurable commercial outcome for the next 90 days. This primary goal will anchor your team’s focus and provide a clear benchmark for success. Examples of strong primary outcomes include:

  • Generate 20% of new sales from one priority overseas market.
  • Reach £25,000 in monthly recurring revenue from international customers.
  • Reduce marketplace settlement and inventory reconciliation delays to fewer than seven days.
  • Launch in one new country while maintaining your existing gross margin.
  • Build enough cash visibility to fund expansion without disrupting payroll or supplier payments.

To support this primary goal, you must track three to five operating metrics that give you a real-time view of your progress and health. These metrics should cover the following areas:

  • Revenue and gross margin by market.
  • Customer acquisition cost and payback period.
  • Average order value or monthly recurring revenue.
  • Inventory days and stock cover.
  • Cash runway.
  • VAT, GST, and Sales Tax obligations.
  • Reporting and filing completion rates.

Assign one owner to every metric. If nobody owns a specific number, it will not improve consistently. Accountability is the engine of operational discipline.

Days 1–15: Establish Your Financial and Operational Baseline

Measure the Business You Have Before Funding the Business You Want

Your first step is to collect accurate, comprehensive information from your bank accounts, payment providers, ecommerce platforms, accounting software, payroll records, and inventory systems. This data forms the foundation of your entire expansion strategy.

Your baseline assessment should answer these critical questions:

  1. Which products, services, or customer segments generate the strongest contribution margin?
  2. Which sales channels create the most profitable growth?
  3. How quickly do customers pay?
  4. How much cash is tied up in inventory?
  5. Which markets already produce demand?
  6. Which compliance tasks are late, manual, or unclear?

Next, build a simple 13-week cash-flow forecast. List expected cash receipts and payments by week. This forecast should include a comprehensive view of your cash movements:

  • Customer receipts.
  • Marketplace settlements.
  • Subscription income.
  • Supplier payments.
  • Payroll and contractor costs.
  • Marketing spend.
  • Freight, duty, and fulfilment.
  • Software subscriptions.
  • VAT, GST, Sales Tax, and corporation tax payments.

Once you have this forecast, add a defined minimum cash buffer. This prevents you from treating every available pound as expansion capital and ensures you have a safety net for unexpected expenses or delays.

A reliable limited company accounting and compliance system can give you cleaner bookkeeping, VAT preparation, year-end accounts, and critical deadline visibility before you commit to significant expansion spending. This foundation of clean financials is non-negotiable.

Baseline checklist

  • Reconcile every bank and payment account.
  • Match marketplace settlements to orders, refunds, fees, and reserves.
  • Review gross margin by product or service.
  • Separate trading cash from tax liabilities.
  • Identify overdue customer balances.
  • Record inventory landed cost, not only supplier invoice value.
  • Document current filing and reporting responsibilities.

Example: An Amazon Seller Finds Hidden Cash Leakage

An Amazon seller may see strong sales figures but weak cash generation because marketplace settlements are frequently reduced by fulfilment fees, storage charges, advertising costs, returns, refunds, and reserve balances.

An Amazon seller accountant in the UK should not simply record the net bank receipt. Instead, the process must reconcile the full settlement report to the underlying sales and costs to uncover any inefficiencies.

For an FBA business, Amazon FBA accounting in the UK should also connect inventory movements with purchases, fulfilment, returns, and cost of goods sold. This detailed view shows whether your growth is genuinely profitable or simply increasing the amount of cash trapped in unsold stock.

Days 16–30: Select One Market With Evidence

Choose the Market That Fits Your Economics and Operations

Do not select a market simply because it appears large. Choose it because your specific business can serve it profitably and compliantly. Fit is more important than size.

Score each potential market from one to five against a clear set of criteria. This disciplined scoring removes emotion from the decision-making process. Evaluate based on:

  • Existing customer demand.
  • Expected selling price.
  • Shipping or service delivery cost.
  • Local competition.
  • Payment methods.
  • Currency and foreign exchange exposure.
  • Customer support requirements.
  • Import, VAT, GST, or Sales Tax obligations.
  • Availability of local fulfilment or business partners.
  • Ease of returning goods or resolving disputes.

For physical goods, map the full route from source to customer. Understanding this flow is critical for pricing and logistics:

Supplier → freight provider → customs entry → warehouse → customer → returns location

For digital businesses, map the entire customer lifecycle to understand friction points:

Lead source → payment provider → contract → service delivery → customer support → renewal

Select one primary market and one backup market. This approach forces disciplined experimentation and reduces wasted setup costs compared to a scattershot approach.

Test demand before committing to infrastructure

Before investing heavily, run a small market test to validate your assumptions. This low-risk experiment can use various channels to gauge real interest:

  • A localised landing page.
  • Market-specific pricing.
  • Search or social advertising.
  • A marketplace listing.
  • A partner or distributor conversation.
  • A small group of existing customers.

Track qualified demand rather than clicks. A market is only promising when customers convert at an acceptable acquisition cost and remain profitable after you account for fulfilment, payment, support, and compliance costs.

Days 31–45: Protect Cash Flow During Expansion

Fund Growth Without Creating a Working-Capital Crisis

International growth often increases costs before it increases receipts. You may need to pay for stock, freight, customs, software, local registrations, advertising, and contractors several weeks before the corresponding revenue arrives. Managing this timing gap is the core of cash flow protection.

Set strict financial guardrails before launching. These boundaries will help you make quick, responsible decisions under pressure:

  • Maximum launch budget.
  • Minimum cash buffer.
  • Maximum customer acquisition cost.
  • Target gross margin.
  • Maximum inventory commitment.
  • Maximum acceptable payback period.
  • Spend-reduction trigger if sales fall below plan.

Review your forecast every week without fail. Actively replace assumptions with actual performance data to keep your plan realistic and grounded.

For ecommerce, you must calculate your true contribution margin by accounting for all variable costs. This provides an accurate picture of profitability per unit:

  • Product cost.
  • Packaging.
  • Freight and duty.
  • Marketplace commissions.
  • Payment processing.
  • Fulfilment.
  • Returns.
  • Advertising.
  • Customer support.
  • Tax-related costs that cannot be recovered.

For SaaS and digital businesses, the contribution margin calculation differs but is equally critical for sustainability:

  • Hosting and software infrastructure.
  • Payment fees.
  • Sales commissions.
  • Customer onboarding.
  • Support.
  • Refunds.
  • Contractors.
  • Local taxes and compliance costs.

Example: A Shopify Business Funds a Controlled US Launch

A UK Shopify business may have strong recurring sales at home but insufficient cash to hire a US team immediately. Jumping in headfirst could be catastrophic for their cash position.

Instead, it can test the market using a US-focused campaign, transparent delivery terms, and a limited product range. The business should model currency conversion, payment fees, import costs, and other variables to build a comprehensive financial picture. This staged approach allows the company to learn, iterate, and scale in a financially responsible way.

Daily Australia Tax Update: 23 August 2026 : ATO Cracks Down on Alcohol Remission Rorting, Widow Tax Fix Passed & 28 August Deadlines Loom

Daily Australia Tax Update: 23 August 2026 : ATO Cracks Down on Alcohol Remission Rorting, Widow Tax Fix Passed & 28 August Deadlines Loom

TITLE: Tax Compliance Alert: Alcohol Excise, Widow Tax Fix, and Key August Deadlines

Australia’s tax compliance landscape is moving quickly this week. The ATO is increasing scrutiny of alcohol excise remission claims, Parliament has passed the so-called widow tax fix, and several important reporting obligations fall due on 28 August 2026.

Whether your business operates in Sydney, Melbourne, Brisbane, Perth, Canberra or Adelaide, use today to review your records, confirm your obligations and prepare before the next deadline arrives.

Alcohol manufacturers: strengthen your remission records now

The ATO has announced a targeted crackdown on misuse of the Alcohol Manufacturers Remission Scheme. The scheme provides eligible manufacturers with a 100% remission of excise duty, subject to an annual cap.

From 1 July 2026, the cap increased from $350,000 to $400,000 per financial year. The change applies to eligible alcoholic beverages entered for home consumption from that date. You can review the current requirements in the ATO’s remission scheme guidance.

The ATO is now focusing on arrangements that may improperly multiply access to the cap. Its compliance activity includes:

  • Business aggregation involving related or connected entities.
  • “Cap shopping” between entities to use separate or remaining caps.
  • Shared premises, equipment or production facilities.
  • Common directors, employees, distillers, brewers or other key personnel.
  • Contract manufacturing structures where responsibility for production is unclear.
  • Claims involving products that were diluted rather than genuinely brewed or distilled.
  • Businesses claiming remission without satisfying the still ownership or manufacturing requirements.

The ATO has indicated that enhanced checks for new licence applications will begin from September 2026. Businesses new to the excise system can also expect greater scrutiny during their first two years of operation from October.

Complete this alcohol excise compliance check

If you manufacture alcohol in NSW, Victoria, Queensland, Western Australia, South Australia or another Australian jurisdiction, review the following:

  1. Reconcile your remission claims to production records.
    This will help you identify errors before the ATO requests supporting evidence.

  2. Track the $400,000 cap throughout the financial year.
    Once the cap is reached, stop applying the automatic remission and select “No” at Label F on later excise returns.

  3. Document legal and economic independence.
    Keep ownership charts, financing records, lease agreements, staff arrangements and equipment registers.

  4. Review contract manufacturing agreements.
    Clearly identify who manufactures the product, who holds the relevant licence and who is entitled to claim the remission.

  5. Retain evidence of genuine manufacturing activity.
    Production logs, fermentation or distillation records, invoices and stock movements may be important during an ATO review.

Strong documentation will help you support valid claims and reduce the risk of unpaid excise, penalties and disruption.

Widow tax fix: preserve the correct CGT and gearing records

The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 passed Parliament on 19 August 2026, addressing an unintended outcome affecting surviving spouses and people experiencing relationship breakdown.

The fix preserves existing negative gearing and capital gains tax entitlements where a person acquires an interest in an investment property because of:

  • The death of a spouse.
  • A transfer from a deceased estate.
  • A change in ownership following relationship breakdown.

The issue arose because a transfer of a previously protected investment property interest could otherwise be treated as a new acquisition. That could have affected access to existing negative gearing treatment and capital gains tax concessions.

This is not an inheritance tax. Australia does not impose a general inheritance tax. The compliance issue is how the transfer is recorded and reported for income tax and CGT purposes.

Record every ownership change carefully

If your business, trust or personal tax affairs involve an investment property affected by death or relationship breakdown, do not rely only on the new policy announcement. Keep:

  • The original purchase contract and settlement statement.
  • Ownership and title records.
  • Probate or estate documentation.
  • Relationship breakdown or court documents, where relevant.
  • Loan statements and interest schedules.
  • Evidence supporting the property’s main residence or investment use.
  • Records of capital improvements and other cost-base items.

You must still consider whether a CGT event occurred, how the main residence exemption applies and whether the property was used to produce rental income. The fix protects the intended tax treatment in qualifying circumstances, but accurate reporting remains essential.

Check the Australian Parliament bills and legislation register and final ATO guidance for commencement dates, transitional rules and any retrospective operation before amending a lodged return.

Bendel decision: review UPE and Division 7A arrangements

Following the High Court decision in Commissioner of Taxation v Bendel, the ATO has clarified that an unpaid present entitlement, or UPE, owed to a corporate beneficiary is not automatically a Division 7A loan.

In practical terms, where a private company becomes presently entitled to trust income and simply leaves that entitlement unpaid, the UPE itself does not automatically create a loan under Division 7A.

However, this does not remove all compliance risk. The ATO’s Division 7A and trusts guidance confirms that other rules may still apply, including:

  • Subdivision EA, where a trust with an unpaid corporate entitlement provides a payment, loan or other benefit to a shareholder or associate.
  • Section 100A arrangements involving reimbursement agreements.
  • Actual loans, payments or financial accommodation by a private company.
  • Existing arrangements that contain additional steps beyond a passive UPE.

The Division 7A benchmark interest rate for the 2026–27 income year is 8.77%. Where a complying Division 7A loan exists, use the correct benchmark rate when calculating interest and minimum yearly repayments.

Reconcile trust accounts before lodgment

For each corporate beneficiary, confirm:

  1. The amount of the present entitlement.
  2. Whether the entitlement remains passive or has been used to fund benefits.
  3. Whether Subdivision EA could apply.
  4. Whether any written loan agreement is required.
  5. Whether the 8.77% benchmark rate has been used correctly.
  6. Whether the trust resolutions and company accounts agree.
USA Tax Update: IRS Updates Section 163(j) Business Interest Rules : Impact on International Sellers (August 2026)

USA Tax Update: IRS Updates Section 163(j) Business Interest Rules : Impact on International Sellers (August 2026)

TITLE: IRS Updates Section 163(j) Business Interest Deduction: What International Ecommerce Sellers Need to Know for 2026

The IRS has updated its guidance on the US business interest deduction. The changes matter if your international business has a US LLC, C corporation, controlled foreign corporation, or US trade or business with interest costs.

This update is especially relevant to UK ecommerce sellers, Amazon FBA brands, cross-border digital businesses, and us importers of record managing US inventory, warehouses, or financing.

Check your 2026 interest deduction before filing

On 19 August 2026, the IRS published Fact Sheet FS-2026-14, updating its frequently asked questions on the section 163(j) business interest expense limitation.

The new fact sheet supersedes FS-2025-09, published on 23 December 2025. It reflects changes and clarifications introduced by the One, Big, Beautiful Bill Act.

Section 163(j) generally limits the amount of business interest expense you can deduct for a tax year. The maximum deduction is the total of:

  • Your business interest income.
  • 30% of adjusted taxable income (ATI).
  • Floor plan financing interest expense.

Any business interest that you cannot deduct is carried forward to the next tax year. The carryforward may remain limited if section 163(j) continues to apply.

This is why accurate bookkeeping matters. Your tax calculation depends on correctly separating interest income, interest expense, depreciation, amortisation, depletion, and other ATI adjustments.

Confirm whether your business qualifies for the small business exemption

A business may generally be exempt from section 163(j) if it meets the gross receipts test and is not a tax shelter.

The base threshold is average annual gross receipts of $25 million or less over the previous three tax years. The inflation-adjusted thresholds are:

  • 2024 tax year: $30 million.
  • 2025 tax year: $31 million.
  • 2026 tax year: $32 million.

Do not assess this threshold using only your US marketplace sales. You may need to consider the relevant gross receipts of related entities and controlled groups.

For example, a UK parent company, US corporation, and related Canadian corporation may require a wider review than the US entity’s Amazon settlement reports alone.

Keep your group structure, ownership records, and revenue calculations together. This will support the exemption analysis and reduce the risk of an incorrect federal return.

Recalculate ATI under the 2026 rules

The updated IRS FAQs highlight two important ATI changes.

Add back depreciation, amortisation, and depletion again

For tax years beginning after 31 December 2024, depreciation, amortisation, and depletion deductions are added back when calculating ATI.

This can increase ATI and therefore increase the 30% interest limitation. However, the effect depends on your full tax computation and the relevant deductions.

Your ecommerce bookkeeping should clearly identify:

  • Warehouse and fulfilment equipment.
  • Computer hardware and software costs.
  • Capitalised development expenditure.
  • Leasehold improvements.
  • Depreciation and amortisation entries.
  • Interest paid on loans, credit facilities, and shareholder funding.

Exclude certain CFC income inclusions

For tax years beginning after 31 December 2025, a US shareholder’s controlled foreign corporation income inclusions under sections 951(a), 951A(a), and 78 are excluded from ATI.

The associated deduction portions are also addressed by the new rule.

In practical terms, a US shareholder can no longer increase ATI by including these CFC income amounts. This may reduce the available section 163(j) limitation for some international structures.

If your US entity owns or is treated as a US shareholder of a foreign corporation, review the calculation before preparing the 2026 return. Do not rely on older assumptions that CFC inclusions automatically increase ATI.

Understand how the rules apply to foreign businesses

Section 163(j) is not limited to domestic US corporations.

The IRS confirms that the rules can apply to:

  • Foreign corporations that are CFCs.
  • Foreign corporations engaged in a US trade or business.
  • Other foreign persons engaged in a US trade or business.
  • CFCs that are partners in partnerships.
  • CFC groups where the relevant group rules apply.

For a CFC, section 163(j) generally applies in a similar manner to a domestic C corporation. A CFC group election may allow a single limitation to be calculated for the group.

For a foreign corporation engaged in a US trade or business, proposed Treasury Regulation section 1.163(j)-8 coordinates the rules with income that is effectively connected with the US trade or business.

This can affect a UK company selling into the United States through:

  • A US warehouse or fulfilment provider.
  • A US branch or fixed business operation.
  • A US entity that borrows to fund inventory.
  • A US marketplace structure with related-party financing.
  • A US subsidiary receiving funding from its UK parent.

Your structure and tax classification will determine the filing treatment. Maintain entity-level records rather than combining every country’s income and expenses into one spreadsheet.

Worked example: UK Amazon seller with a US entity

Assume a London-based ecommerce brand sells through Amazon US. It operates through a US corporation and uses fulfilment locations in Texas and California.

For the 2026 tax year, the US corporation has:

  • Business interest expense: $50,000.
  • Business interest income: $2,000.
  • Adjusted taxable income before the 30% calculation: $100,000.
  • Floor plan financing interest: $0.

The section 163(j) limitation is:

  • Business interest income: $2,000.
  • 30% of ATI: $30,000.
  • Floor plan financing interest: $0.
  • Maximum deductible business interest: $32,000.

The result is:

  • Total interest expense: $50,000.
  • Deductible interest: $32,000.
  • Disallowed interest carried forward: $18,000.

This is an illustration only. The actual result could change after considering the gross receipts exemption, CFC rules, partnership rules, related entities, capitalisation rules, and the full ATI computation.

If the company also has relevant depreciation or amortisation deductions, those may be added back to ATI for a tax year beginning after 31 December 2024. That could increase the deduction limit.

However, if the structure involves CFC income inclusions for a tax year beginning after 31 December 2025, those inclusions may no longer increase ATI.

Separate federal interest rules from state sales tax

Section 163(j) concerns the federal deduction for business interest expense. It does not replace state sales tax compliance.

An Amazon or Shopify seller may still need to review sales tax obligations in states such as:

  • New York.
  • Texas.
  • California.

Marketplace facilitator rules may mean Amazon calculates and collects sales tax on certain transactions. You may still need to register, file returns, report marketplace sales, or manage direct Shopify and WooCommerce transactions.

Your warehouse locations also remain important. Inventory stored in Texas or California may affect state compliance even where the federal interest calculation is handled separately.

This is why Amaz

UAE Business Setup & Strategy Spotlight: August 2026 Edition for Digital and Global Businesses

UAE Business Setup & Strategy Spotlight: August 2026 Edition for Digital and Global Businesses

TITLE: UAE Business Setup and Tax Compliance: Key Updates for August 2026

If you are expanding an e-commerce brand, SaaS company, digital agency, or international SME into the UAE, August 2026 brings important compliance priorities.

This week’s focus is practical: choose the right structure, understand the latest UAE tax updates, and prepare your records before new filing and e-invoicing requirements become urgent.

Start with the right UAE business structure

Your business activity, customers, employees, warehouse arrangements, and tax position should drive the setup decision.

Mainland company

A mainland company can generally trade across the UAE and contract directly with UAE customers. It may be suitable if you need local operations, staff, premises, or broad access to the domestic market.

The usual structure is a mainland LLC. You should confirm activity-specific licensing, ownership, premises, and approvals before incorporation.

Free zone company

A free zone company can provide a focused operating environment, sector-specific licensing, and access to free zone infrastructure.

Common structures include:

  • FZ-LLC: a free zone limited liability company.
  • FZCo: a free zone company with the structure determined by the relevant free zone authority.
  • Free zone branch: an extension of an existing legal entity.

A free zone licence does not automatically mean that all income qualifies for the 0% Corporate Tax rate. You must separately satisfy the Qualifying Free Zone Person rules, including qualifying income, adequate substance, audited financial statements, and other conditions.

Offshore company

An offshore structure may be used for specific holding or international purposes. It is not usually the straightforward choice for operating a UAE-facing business, hiring employees, maintaining premises, or selling directly into the UAE.

Check the permitted activities and banking implications carefully before choosing this route.

Complete the setup in the correct order

Use this checklist to reduce delays:

  1. Define your business activity. Your licence must match what you actually sell or deliver.
  2. Choose the jurisdiction. Compare mainland, free zone, and offshore limitations.
  3. Reserve your trade name. Confirm availability and naming requirements.
  4. Apply for initial approval. Some activities require additional government approvals.
  5. Prepare the constitutional documents. This may include an LLC Memorandum of Association or free zone incorporation documents.
  6. Secure a business address and Ejari where required. Your premises should support your licence and operational needs.
  7. Obtain the trade licence. Keep the licence, incorporation certificate, shareholder information, and lease documents together.
  8. Open a business bank account. Prepare a clear business plan, ownership chart, source-of-funds evidence, and expected transaction profile. You can also compare multi-currency business account options if you trade internationally.
  9. Register for UAE Corporate Tax. Registration deadlines depend on the entity and when it became subject to tax. Do not assume that a new company has no registration obligation.
  10. Assess VAT registration. Consider both UAE turnover and cross-border supply rules.

Typical documentation includes passports, Emirates IDs or visa documents where applicable, shareholder and beneficial-owner details, proof of address, business plans, lease documents, constitutional documents, and banking evidence.

What changed this week: key UAE compliance updates

Prepare for the new QFZP distribution evidence requirement

FTA Decision No. 6 of 2026 applies to Qualifying Free Zone Persons carrying out the qualifying activity of distributing goods or materials in or from a Designated Zone.

For tax periods beginning on or after 1 January 2026, an affected QFZP must obtain an independent Agreed-Upon Procedures report from a UAE-licensed auditor. The report must be prepared under ISRS 4400.

It must verify that:

  • Customers are resellers purchasing goods for resale, onward supply, or processing for sale.
  • Goods entering the UAE entered through a Designated Zone.

The report must be submitted to the FTA within 30 days after the Corporate Tax return filing deadline.

Failure to submit the report can mean that the conditions for the qualifying distribution activity are treated as not met. This can put the QFZP benefit for that activity at risk.

This update affects goods-distribution free zone traders. It does not generally apply to pure SaaS, digital agency, software development, or other service-only businesses.

Deloitte’s summary of FTA Decision No. 6 of 2026 provides additional technical context.

Start e-invoicing preparation now

The UAE e-invoicing pilot and voluntary phase began on 1 July 2026.

Under Ministerial Decision No. 244 of 2025, as amended by Ministerial Resolution No. 66 of 2026:

  • Businesses with revenue of AED 50 million or more must appoint an Accredited Service Provider by 30 October 2026.
  • Those businesses must go live with e-invoicing by 1 January 2027.
  • Businesses with revenue below AED 50 million must appoint an Accredited Service Provider by 31 March 2027.
  • They must go live by 1 July 2027.
  • Government entities must go live by 1 October 2027.

B2B and B2G transactions are in scope. B2C transactions are not currently included in the mandatory rollout.

A PDF emailed to a customer is not an e-invoice. The UAE Ministry of Finance defines an e-invoice as structured invoice data exchanged electronically and reported to the FTA through the approved framework. Review the official UAE e-invoicing portal and begin mapping your accounting, billing, marketplace, and ERP systems.

Understand the latest Corporate Tax positions

The July 2026 FTA summary of private clarifications gives useful direction for businesses with complex structures.

Assess free zone entities and branches together

A free zone legal entity and its free zone branches are assessed collectively for relevant QFZP tests. However, each activity must ind

Daily Australia Tax Update: 22 August 2026 : $20,000 Instant Asset Write-Off Made Permanent, Loss Carry-Back Passed & 28 August Deadlines Loom

TITLE: Australia Tax Update: Key Changes and Deadlines Before 28 August 2026

Australian businesses have two major tax changes to record and several deadlines to meet before 28 August 2026. The new rules affect small businesses, companies carrying losses, employers, contractors and cross-border businesses.

Whether you operate from Sydney, Melbourne, Brisbane, Perth, Canberra, NSW, Victoria or Queensland, use today to update your accounting and payroll processes.

Australia Tax Update at a Glance

  • The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 passed Parliament on 19 August 2026.
  • The $20,000 instant asset write-off is now permanent for eligible small businesses from 1 July 2026.
  • A permanent loss carry-back regime applies to eligible corporate tax entities for income years beginning on or after 1 July 2026.
  • The Taxable Payments Annual Report (TPAR) for the year ended 30 June 2026 is due by 28 August 2026.
  • Employers that missed the April–June 2026 super deadline must lodge and pay their Super Guarantee Charge (SGC) by 28 August 2026.
  • Payday Super now requires contributions to reach employees’ funds within seven business days of each payday.
  • Proposed SMSF reforms have been announced, but they are not yet law.
  • The ATO will publish its 2023–24 R&D tax incentive transparency report in late September 2026.
  • Monthly foreign exchange rates for the 2026–27 income year, including July 2026 rates, are now available.

Claim the Permanent $20,000 Instant Asset Write-Off Correctly

The Bill passed the House of Representatives on 18 August and the Senate on 19 August. It makes the $20,000 instant asset write-off permanent for eligible small businesses.

You can generally use the measure if your business has aggregated annual turnover below $10 million and the asset is first used, or installed ready for use, for a taxable purpose from 1 July 2026.

The $20,000 threshold applies per asset. This means you may be able to immediately deduct multiple eligible assets costing less than $20,000 each.

Assets costing $20,000 or more are not immediately written off. Instead, they generally enter the small business simplified depreciation pool. The pool is depreciated at:

  • 15% in the first income year; and
  • 30% in later income years.

A small business pool balance below $20,000 may also be written off, subject to the applicable rules. The five-year lock-out for opting back into simplified depreciation remains suspended until 30 June 2027.

Before claiming a deduction, retain the invoice, payment record, asset description, business-use percentage and installation date. This evidence will support your claim if the ATO reviews your return.

Read the Parliamentary Bills Digest for the Tax Reform No. 2 Bill and the ATO’s instant asset write-off guidance.

Use the New Loss Carry-Back Rules to Improve Cash Flow

The Bill also establishes a permanent loss carry-back regime for eligible corporate tax entities.

The measure can apply to companies, corporate limited partnerships and public trading trusts with aggregated annual global turnover below $1 billion, provided they are not significant global entities.

For income years beginning on or after 1 July 2026, an eligible entity may carry back a revenue loss against tax paid in either or both of the previous two income years.

The resulting tax offset is broadly calculated by multiplying the eligible loss by the corporate tax rate applying in the loss year. The offset is capped by the entity’s franking account balance. It is not an unrestricted cash refund.

You should also check the integrity rules. The offset may be blocked where voting control changes primarily to obtain the benefit. Family succession arrangements and changes arising from relationship breakdowns are excluded from that integrity restriction.

Start by preparing a two-year tax payment history. Then reconcile:

  1. Taxable income and tax paid in the prior two years.
  2. Revenue losses arising from the 2026–27 income year.
  3. Corporate tax rates applicable to the loss year.
  4. The company’s franking account balance.
  5. Any ownership or voting-control changes.

This process will help you identify whether the relief may improve cash flow while avoiding an incorrect claim.

The Bill also provides a specific employment income tax exemption for PNG Chiefs Limited. This measure operates retrospectively from 1 July 2025 to 30 June 2035.

Meet the 28 August TPAR Deadline

If your business paid contractors for relevant services during the year ended 30 June 2026, your TPAR is due electronically by 28 August 2026.

The report may apply to businesses in construction, cleaning, courier and road freight, information technology, security, investigation and other industries covered by the taxable payments reporting rules.

Review your contractor records now. Check:

  • Contractor names and business names.
  • ABNs and GST registration details.
  • Total payments made during the 2025–26 financial year.
  • Payments reported through your accounting software.
  • Any excluded payments or payments for materials.
  • Contractors paid through different entities or bank accounts.

Lodge a nil report if the ATO requires one and your business has no reportable payments. Keeping the TPAR accurate will reduce follow-up work and help prevent mismatches with contractor records.

Use the ATO’s TPAR guidance and lodgment information.

Correct Missed Super Before Payday Super Costs More

Employers that missed the original 28 July 2026 super guarantee deadline for the April–June 2026 quarter must lodge their SGC statement and pay the charge by 28 August 2026.

Payments received by a fund on or after 29 July 2026 cannot generally be offset against the SGC for that quarter. They must be reviewed under the new Payday Super framework.

From 1 July 2026, super contributions must reach the employee’s fund, with sufficient information for allocation, within seven business days after each payday. This is an operational change. Payroll approval, payment processing and fund allocation must now work together.

If a shortfall occurs, the default administrative uplift is 60%. A voluntary disclosure statement lodged before the ATO assesses the liability may reduce the uplift by up to 40 percentage points where the disclosure is made within 30 days of the relevant quarter-end day. A further 20 percentage-point reduction may apply where there has been no Commissioner-initiated SGC assessment or estimate in the previous 24 months.

Do not wait for an ATO notice. Reconcile payroll, contribution files, payment dates and fund receipts today. The ATO Payday Super guidance explains the new payment process.

Treat SMSF Reforms as Proposals, Not Current Law

On 19 Augu