If you only skim one tax update this month, make it this one.
August locked in a permanent $20,000 instant asset write-off for eligible small businesses, Payday Super rules got sharper around timing and contractors, and draft property and trust changes for 2027 are worth watching before you buy, sell, or restructure.
Here’s the plain-English version — what changed, what it means for your business, and what to do next.
Good news if you’ve been waiting for clarity on the instant asset write-off.
The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 received Royal Assent on 26 August 2026. Among other things, it permanently extends the $20,000 instant asset write-off for eligible small businesses from 1 July 2026 — so you’re no longer stuck waiting for a last-minute yearly extension.
In plain English: if your business qualifies (generally turnover up to $10 million), you can keep writing off eligible assets costing less than $20,000 straight away, instead of depreciating them over years. That’s cashflow timing you can plan around.
The same Act also brings back corporate tax loss carry-back rules.
What to do next: If you’re thinking about buying tools, vehicles, or equipment this year, talk to us before you spend. We’ll check whether the write-off fits your situation and how it sits with your broader tax plan.
Payday Super isn’t “coming soon” anymore — it’s how super works now, and the ATO has put more detail around the edges.
Key points for employers:
Missed the June quarter deadline? If contributions didn’t hit the fund by 28 July, you needed an SGC statement lodged and paid by 28 August to stay compliant. If you’re unsure where you landed, we can review it.
What to do next: Check your payroll setup still pays super with every pay run, and flag any contractors who look a lot like employees. We’re happy to run a quick sense-check with you.
If you own (or are thinking about buying) investment property, keep an eye on this one — it’s draft only, but the direction is clear.
Exposure draft legislation for 2026–27 Budget measures proposes, from 1 July 2027:
Treasury also floated an apportionment method so you aren’t forced into a full market valuation at 30 June 2027 for every asset without a clear market price. Feedback was sought on death, relationship breakdown, what counts as a “new” dwelling, and how trusts and deceased estates are treated.
Separately, the Tax Reform No. 2 Act extends some negative gearing treatment for residential dwellings acquired via inheritance or relationship breakdown — useful detail if that’s your situation.
Nothing here is “sell everything tomorrow” advice. It is “know the rules that might apply from mid-2027 and plan with eyes open.”
What to do next: If property is a big part of your wealth plan, book a chat before you refinance, buy, or sell. We’ll map what the drafts could mean for you once the final law is clearer.
The Government released draft legislation for a minimum 30% tax on discretionary trusts, including restructuring cost-limitation options and an alternative path via fixed distribution elections. Submissions were due 18 September 2026.
If you run profits through a family or discretionary trust, this is worth understanding early — not because you need to restructure overnight, but because the shape of the final rules will matter for how (and to whom) you distribute.
What to do next: Send us your current trust deed and last year’s distribution pattern if you want a plain-English read on where you might sit once the rules settle.
Work-related expenses — standard deduction draft
The ATO issued Draft LCR 2026/D5 on the standard deduction for work-related expenses under s 25-130. Comments are open until 9 October 2026. If you usually claim a pile of work expenses, this may simplify (or change) how you claim — we’ll update you when it’s final.
ATO watching PAYG instalment “nil” variations
The ATO is contacting taxpayers who have varied PAYG instalments to nil for multiple years. Understating instalments can attract general interest charge (GIC). If your business has bounced around, don’t set nil on autopilot — check it stacks up.
Travel and property data matching
The ATO will match passenger movement data from Home Affairs (2026–27 to 2028–29) against tax records, and continues to refine real property transaction data matching. Overseas trips and property deals leave a clearer digital trail than they used to.
Lost super reminder
The ATO is again urging people to track down lost super — more than $21 billion still sitting in inactive accounts. A five-minute check via ATO online services is often worth it.
September’s theme is simple: the write-off is locked in, Payday Super is about systems and timing, and property and trust drafts are worth watching before 2027.
We’ll keep translating the noise into what actually matters for your business. If any of the above sounds like you, get in touch — that’s what we’re here for.
Full Cycle Accounting
P: +61 419 993 982
E: info@fullcycleaccounting.com.au
W: www.fullcycleaccounting.com.au
Disclaimer: This information has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, consider its appropriateness having regard to your own circumstances. This is general information only and is not personal tax or financial advice.
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