Changes from 1 July 2026

As seen in Woopi News July 2026

Tax Rate decrease for the income bracket between $18,201 to $45,000 reducing from 16% to 15%. This means all taxpayers earning salaries and wages of more than $18,201 should see a small increase in their take home pay from July.

Payday Super comes into effect. Employers need to pay their employees superannuation on the same cycle as payroll, i.e. weekly/fortnightly/monthly, rather than the previous quarterly cycle. Contributions need to be received by the superannuation fund within 7 business days or 20 business days where it is a new employee or an employee has a new super account.

Professionals such as accountants, real estate agents and solicitors need to comply with Anti Money Laundering (AML) and Couter- Terrorism Financing (CTF) reporting obligations. AML/CTF compliance requires professionals to conduct identity checks and risk assessments when providing designated services including the setup up of new business which will increase costs for startups and business restructures. AML/CTF compliance also includes mandatory reporting of suspicious matters to AUSTRAC.

$20,000 immediate write off of assets for small business taxpayers now made permanent. This applies per individual assets. Businesses can buy multiple assets so long as each asset is under $20,000 and it is installed ready for use by the end of the financial year (not on order).

ATO interest is non-deductible. In the past taxpayers have been able to claim a tax deduction for interest paid to the ATO on outstanding debt. From 1 July 2026 ATO interest is no longer deductible. However, interest on financing options such as bank loans used to pay ATO debt, is still deductible.

The instant $1000 deduction does NOT apply to the 2026 Tax Return that taxpayers will be lodging this tax season, it applies from 1/7/2026 for the 2027 Tax Return. You still need to have all your receipts to substantiate deductions for your 2026 Tax Return due for lodgement on 31st October 2026, or by 15th May 2027 if lodging via a registered tax agent and all your prior years are up to date.