At Hills Accounting, the tax accountant Hobart trusts, we understand that running a small business in Australia means keeping an eye on more than just your sales figures — you’ve got to stay on top of the ever-changing tax rules too.
With the 2025–26 financial year underway, and shaping up to be a busy one, now’s the perfect time to make sure you know what’s changing and how it might affect your business.
1. Instant Asset Write-Off: Reduced but Still Handy
The government has extended the instant asset write-off for small businesses with turnover under $10 million — but the threshold has dropped back to $20,000.
That means you can immediately deduct the cost of assets (like new tools, laptops, or equipment) up to $20k per item, provided they’re installed and ready for use before 30 June 2026.
👉 Tip: Plan your purchases carefully — multiple smaller items might be deductible, but one big piece of machinery may not.
2. Super to Be Paid on Payday
From 1 July 2026, employers will have to pay superannuation contributions at the same time as wages, not quarterly. This change, known as Payday Super, will improve employees’ retirement outcomes but may impact cash flow for small businesses.
Start reviewing your payroll systems early and talk to your accountant about forecasting before the switch.
3. Changes to PAYG Instalments for 2025–26
The government has updated the GDP uplift factor for PAYG instalments, which may change how much tax small businesses pre-pay during the year.
This affects sole traders, companies, and trusts that use the instalment system.
👉 Action: Review your next IAS/BAS instalment to ensure you’re not overpaying or underpaying.
4. Digital Record-Keeping and e-Invoicing Push
The ATO is doubling down on digital-first record-keeping.
While not mandatory for every business yet, e-Invoicing offers safer, faster and more accurate invoice exchange.
Businesses already using cloud systems like Xero, MYOB, or QuickBooks Online will transition easily.
If you’re still on spreadsheets or paper, 2025 is the year to switch.
5. Crackdown on Cash and Non-Lodgers
The ATO’s compliance program continues to target cash-heavy businesses and those who fall behind on lodgements. BAS, GST, income reporting and super payments are all now more visible thanks to data-matching and real-time reporting tools.
Keeping your data clean now will save headaches later.
The Bottom Line
Tax rules shift every year, but a good accountant helps you stay one step ahead. With asset write-off thresholds reduced, digital compliance tightening, and Payday Super on the horizon, now’s the perfect time to review your systems and plan ahead.
If you’d like to talk through what these changes mean for your business, Hills Accounting Hobart can help you prepare and stay compliant.
👉 Read more from the ATO here:
https://www.ato.gov.au/businesses-and-organisations/small-business-newsroom/our-new-focus-areas-for-small-business
Remember, this article is general in nature and doesn’t take into account your specific objectives, financial situation, or needs. For advice tailored to your circumstances, have a chat with us at Hills Accounting Hobart.
Talk to Kathy and the team today and stay ahead with Hills Insights.
Call Now! 03 6273 7800, or email admin@hillsaccounting.com.au.