Your practical guide to the actions, deadlines and reforms that matter before 30 June 2026 – and the structural changes reshaping the years ahead.
This year's guide carries more weight than most. The 2025‑26 financial year is the last under several long‑standing settings – and the runway into a materially different tax landscape.
The 2026‑27 Federal Budget, handed down on 12 May 2026, set out the most significant changes to capital gains tax, negative gearing and trust taxation in a generation, while Payday Super and the closure of the ATO clearing house reshape payroll from 1 July 2026.
The actions you take in the next few days will shape your tax position for the entire year. Just as importantly, decisions made between now and mid‑2027 will have lasting consequences for both business and personal wealth. The window to plan is open now.
Work through Sections 1 to 4 before 30 June – these are the levers still available this year. Sections 5 to 7 are about positioning for what is coming. Anything marked Act Now is time‑critical. Speak to us before actioning any restructure.
If you do nothing else this June, do these. Each is time‑critical and the opportunity is lost once the year ticks over.
Businesses with aggregated turnover under $10 million can immediately deduct eligible assets costing less than $20,000 (excluding GST if registered), provided each asset is first used or installed ready for use by 30 June 2026. Ordering before year‑end is not enough – it must be in use. The threshold becomes permanent from 1 July 2026, but assets bought next year are claimed next year.
For employee or personal super to be deductible this year, it must be received by the fund before 30 June – not merely sent. Allow up to two weeks for clearing. Note the ATO's Small Business Superannuation Clearing House closes permanently on 30 June 2026.
The concessional cap is $30,000 for 2025‑26. If your total super balance was under $500,000 at 30 June 2025, you may carry forward unused cap from the prior five years – and 2025‑26 is the final year you can use any unused 2020‑21 cap before it expires. Lodge a valid Notice of Intent before lodging your return.
If you operate through a discretionary trust, the trustee resolution must be made and documented before midnight on 30 June (or earlier if the deed requires). Missing it can see the trustee assessed at the top marginal rate. Do not leave it to the last day.
Eligible expenses prepaid up to 12 months in advance (including interest) can be brought forward where turnover is under $50 million. Genuinely unrecoverable debts written off by 30 June are deductible this year – and you can claim back the associated GST.
Clients of a registered tax agent access an extended lodgement program (out to 15 May 2027 for many returns), provided you are on our books by 31 October 2026. Earlier engagement also means more planning levers are still available.
Companies · Trading trusts · Sole traders · SBE <$10M · Mid‑market <$50M
Everything below depends on accurate records. Reconcile all bank, credit card and loan accounts to 30 June, ensure clearing and payroll‑clearing accounts sit at zero, run your P&L, Balance Sheet and Cash Flow, and lock prior periods once reconciled.
| Measure | 2025‑26 position |
|---|---|
| Instant asset write‑off (SBE <$10M turnover) | Immediate deduction for assets <$20,000 each, in use by 30 June 2026. Per‑asset basis, no cap on number of assets. Becomes permanent from 1 July 2026. |
| Assets $20,000 or more (SBE) | Allocated to the small business pool – 15% in year one, 30% thereafter. |
| Car depreciation cost limit | $69,674 for 2025‑26 (rising to $69,883 for 2026‑27) – applies regardless of fuel efficiency. Cost above the limit is not depreciable. |
For the year ending 30 June 2026, base rate entities in a group with aggregated turnover under $50 million (and no more than 80% passive income) are taxed at 25%; others at 30%. The franking rate and income tax rate are set independently – a company on predominantly passive income franks at 30% even within a sub‑$50M group. Review the income mix across your group before declaring dividends.
The 16% marginal rate on income between $18,201 and $45,000 falls to 15% from 1 July 2026. For business owners this sharpens the case for deferring personal income (trust distributions or bonuses) into 2026‑27 where commercially sensible – every taxpayer earning above $45,000 saves around $268.
High‑net‑worth individuals · Property investors · PAYG employees · Share investors
| Taxable income | Tax on this income |
|---|---|
| 0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Excludes the 2% Medicare levy. From 1 July 2026 the second bracket rate falls from 16% to 15%.
The 2026‑27 Budget proposes major changes to negative gearing and CGT from 1 July 2027, with established residential properties acquired after 7:30pm on 12 May 2026 treated differently from grandfathered holdings. If you are contemplating an acquisition or disposal, the structuring decision now has long‑term consequences. Talk to us first.
| Measure | 2025‑26 | From 1 Jul 2026 (indexed) |
|---|---|---|
| Concessional (deductible) | $30,000 | $32,500 |
| Non‑concessional | $120,000 | $130,000 |
| Bring‑forward (non‑concessional, 3 yrs) | up to $360,000 | up to $390,000 |
| Super Guarantee rate | 12% (final legislated) | 12% |
| General transfer balance cap | $2.0 million | $2.1 million |
Because the caps rise from 1 July 2026, timing matters. A non‑concessional bring‑forward triggered in 2025‑26 locks you into the old $360,000 maximum – waiting until July unlocks $390,000. Conversely, the carry‑forward concessional window is closing: 2025‑26 is the last year to use any unused 2020‑21 concessional cap.
If your total super balance was under $500,000 at 30 June 2025, you may carry forward unused concessional cap from the previous five years to make a larger deductible contribution this year. Check available amounts via myGov or with us. Contributions count only when received by the fund – allow processing time before 30 June.
Ensure the minimum pension has been drawn and cleared from the fund's bank account before 30 June 2026; failing to meet the minimum can cost the pension's tax exemption. Factor in any pension commenced after 1 July 2025.
| Age of pension account‑holder | 2025‑26 minimum |
|---|---|
| Under 65 | 4% |
| 65 – 74 | 5% |
| 75 – 79 | 6% |
| 80 – 84 | 7% |
| 85 – 89 | 9% |
| 90 – 94 | 11% |
| 95 or older | 14% |
Division 296 was enacted on 10 March 2026 and applies from 1 July 2026. It imposes an additional 15% tax on a portion of earnings attributable to total super balances above $3 million, calculated across all your funds. As passed, it applies to realised earnings only – dividends, interest, rent and realised capital gains – not unrealised gains still held in the fund.
SMSF trustees – a one‑off cost‑base reset. Affected members may elect to reset the cost base of fund assets to market value as at 30 June 2026, so only post‑reset gains fall within Division 296. The election need not be made by 30 June 2026, but obtaining market valuations of all assets at that date is an important step. This is a complex, high‑value decision – please raise it with us.
Two permanent changes land on 1 July 2026. The 2025‑26 year is the last under the old quarterly system – use EOFY to get your systems ready.
Super must be paid on every payday, not quarterly. Contributions, calculated on the employee's qualifying earnings, must reach the fund within seven business days of each salary or wage payment. The final quarterly payment (Q4, April–June 2026) is due 28 July 2026 – pay it early to claim the deduction in 2025‑26.
The ATO's free Small Business Superannuation Clearing House closed to new users on 1 October 2025 and shuts entirely on 30 June 2026. If you still use it, transition to a SuperStream‑compliant alternative (most Xero, MYOB and KeyPay setups have one built in) before your first July pay run. Don't leave the switch to July.
The 16% rate on income from $18,201 to $45,000 drops to 15%. Updated PAYG tables apply from your first July pay run – your software should update automatically, but verify before processing.
From 1 July 2026, STP must report both Ordinary Time Earnings and total super liability, supporting the ATO's real‑time Payday Super monitoring. Confirm your payroll software is configured before the first July run.
The Budget handed down on 12 May 2026 proposed the most significant structural tax changes in a generation. These measures are not yet law and detail may change – but the direction is clear, and the planning window is finite. Understand the implications now; hold off on any actual restructure until measures have passed.
From 1 July 2027, the Government proposes to replace the 50% CGT discount for individuals, trusts and partnerships with cost‑base indexation (for assets held more than 12 months) plus a 30% minimum tax on net capital gains – in effect a partial return to the pre‑1999 regime: taxed only on the "real" gain after inflation, but with a tax‑rate floor.
Established residential properties acquired after 7:30pm AEST on 12 May 2026 will no longer be eligible for negative gearing from 1 July 2027. Losses on these properties can only be offset against income from similar property investments (including future capital gains), not against salary or business income.
From 1 July 2028, the Government proposes a 30% minimum tax at the trustee level on discretionary trust distributions, with beneficiaries then taxed at their marginal rates and allowed a non‑refundable 30% credit for tax already paid.
The period between now and mid‑2027 is a key planning window. For clients with material assets, investment property, or family‑trust structures, decisions made in the next 12–24 months will have lasting consequences. Our recommendation is to model the alternatives now – including potential disposals, valuations and restructures – but to hold off actioning any material change until the measures have passed Parliament, given remaining uncertainty around concessions and carve‑outs.
The treatment of unpaid present entitlements (UPEs) from trusts to corporate beneficiaries under Division 7A has been before the High Court in the Bendel matter, with a decision anticipated shortly. 2026 distributions from trusts to companies should be considered carefully, especially if Bendel is handed down before 30 June 2026. That said, the Budget's proposed trustee‑level trust tax (Section 6) may reduce the decision's longer‑term practical relevance. We will keep you updated.
EOFY is the natural moment to step back. With the proposed trust and CGT reforms, the rollover relief from 1 July 2027, and your own growth, the structure that suited you three years ago may not be optimal for the years ahead. Some structural changes can only be made cleanly at the start of a financial year and need lead time. If you have been meaning to map your options – across companies, trusts and SMSFs – let's start that conversation now rather than in the rush of June 2027.
| Item | 2025‑26 | 2026‑27 |
|---|---|---|
| Instant asset write‑off (SBE <$10M) | < $20,000 | < $20,000 |
| Car depreciation cost limit | $69,674 | $69,883 |
| Super Guarantee rate | 12% | 12% |
| Concessional contributions cap | $30,000 | $32,500 |
| Non‑concessional cap | $120,000 | $130,000 |
| Transfer balance cap | $2.0M | $2.1M |
| Division 7A benchmark rate | 8.37% | 8.77% |
| Division 296 threshold | n/a | $3.0M |
| WFH fixed rate | 70c / hour | 70c / hour |
| Cents‑per‑km (max 5,000km) | 88c / km | 91c / km (draft) |
| Company tax rate (BRE <$50M) | 25% | 25% |
| HELP repayment threshold | $67,000 | $69,528 |
| Effective | Reform |
|---|---|
| 1 Jul 2027 | 50% CGT discount replaced by indexation + 30% minimum tax; negative gearing limited to new builds; pre‑CGT exemption ends 30 Jun 2027. |
| 1 Jul 2027 | Three‑year restructure rollover relief opens. |
| 1 Jul 2028 | 30% minimum tax on discretionary trust distributions. |
This guide is general in nature. The real value comes from applying it to your specific position – your business, your structure, your goals. As your proactive partner, we would rather have the planning conversation in May than the explanation conversation in October.
Book your year‑end planning review