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:
- Taxable income and tax paid in the prior two years.
- Revenue losses arising from the 2026–27 income year.
- Corporate tax rates applicable to the loss year.
- The company’s franking account balance.
- 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
