What's New for Small Business Tax Time 2026
Tax rules don't stand still, and the 2025–26 year brings some changes worth knowing about — especially if you have employees or you've been claiming ATO interest charges. Here's a rundown of what's changed and what it means for your business.
Payday Super starts 1 July 2026
This is the big one for anyone with staff. From 1 July 2026, you'll need to pay super at the same time as wages, rather than quarterly. In short:
Super is paid to each employee's nominated fund on every payday.
It's calculated on "qualifying earnings", which brings together ordinary time earnings and other payments.
The money must reach your employees' super funds within 7 business days of payday (a longer timeframe can apply in some cases, such as for new employees).
You'll also need to report both qualifying earnings and your super liability through Single Touch Payroll (STP) from 1 July 2026.
A few practical things to keep in mind:
Updated payment systems allow near real-time super payments and clearer error messaging, so problems are easier to spot and fix.
If super doesn't reach the right fund in full and on time, the super guarantee charge (SGC) applies. Until you receive an SGC assessment, you should pay any late contributions straight to your employee's fund.
Late payment offsets aren't available under Payday Super, or for the quarter ending June 2026.
The Small Business Super Clearing House (SBSCH) can't be used for any payments on or after 1 July 2026. Give yourself time to download your records and move to an alternative provider before then.
If you have staff, start preparing now rather than waiting until July.
You can no longer deduct ATO interest charges
If you're charged general interest charge (GIC) or shortfall interest charge (SIC) on or after 1 July 2025, you can't claim these as a tax deduction in your 2025–26 or later returns.
Pre-fill is expanding for sole traders
If you're a sole trader, more of your tax return will now be filled in for you automatically. Pre-fill securely imports verified information so you're less likely to make mistakes.
From Tax Time 2026, the following will be pre-filled for sole traders:
Assessable payments you've received, including government grants and payments reported on a Taxable Payments Annual Report (TPAR)
Your Australian Business Number (ABN)
The value of your opening stock (if any)
A couple of tips:
Pre-fill data arrives as it becomes available from banks, government agencies, health funds and other providers.
Most TPAR data won't be ready until after 28 August, so lodging after that date means fewer gaps to fill and less chance of needing an amendment later.
You stay in control — all pre-filled information must be reviewed and confirmed by you before you lodge.
Instant asset write-off: deduct eligible assets under $20,000
If your business has an aggregated annual turnover of less than $10 million, you may be able to immediately deduct the business portion of eligible assets that cost less than $20,000.
The key conditions:
The asset must be first used or installed ready for use between 1 July 2025 and 30 June 2026.
The $20,000 limit applies per asset, so you can instantly write off multiple assets.
Changes to plug-in hybrids (PHEVs) and FBT
If you provide plug-in hybrid vehicles to employees, their families or associates for private use, two changes may affect you this fringe benefits tax (FBT) year:
New shortcut method for home charging. There's now a simpler optional method to work out the electricity cost when an employee charges a PHEV at home. You need to meet the eligibility requirements to use it, or you can keep calculating the actual costs.
FBT exemption no longer applies to PHEVs. Since 1 April 2025, PHEVs are no longer treated as a zero or low-emissions vehicle under FBT law. If you've kept providing PHEVs for private use, you may now have FBT obligations for the 2025–26 FBT year. (You may still be eligible for the electric car exemption if you meet those requirements.)
More time to amend your tax return
Good news if you spot a mistake after lodging. Businesses with an aggregated turnover of less than $50 million now have up to 4 years from the date of their tax assessment to request an amendment. This applies to assessments for the 2024–25 income year and later.
This is a general summary of the ATO's 2026 guidance. Rules and thresholds can change, so for the full detail visit ato.gov.au or speak with a registered tax professional about your situation.