The 2025-26 financial year brings several important tax updates that could directly impact your business's bottom line. As a small business owner, staying informed about these changes ensures you remain compliant while taking full advantage of available concessions.
Key Tax Rate Updates
For the 2025-26 financial year, the company tax rate remains at 25% for base rate entities (companies with aggregated turnover of less than $50 million). However, it's essential to review your business structure annually, as individual tax thresholds have shifted slightly. The Stage 3 tax cuts implemented in July 2024 continue to reduce personal income tax rates, which may influence decisions about salary packaging and profit distribution for sole traders and partnerships.
Instant Asset Write-Off Threshold
The instant asset write-off scheme remains a valuable tool for businesses looking to invest in equipment and technology. For the 2025-26 financial year, eligible businesses can immediately deduct the full cost of depreciating assets costing less than the relevant threshold. This concession applies per asset, meaning multiple purchases can be written off in the same financial year. Remember that the asset must be first used or installed ready for use by June 30, 2026.
Small Business Concessions You Should Know
Several small business tax concessions remain available:
Simplified depreciation rules for assets not eligible for immediate write-off
Immediate deductions for prepaid expenses when the service period is 12 months or less
Fringe benefits tax (FBT) exemptions for work-related devices and tools of trade
Small business restructure rollover allowing deferral of capital gains tax when changing business structures
Important Lodgment Deadlines
Missing tax deadlines can result in costly penalties. For the 2025-26 financial year, keep these dates in mind:
Quarterly BAS lodgments: 28 October 2025, 28 February 2026, 28 April 2026, and 28 July 2026
Company tax returns: Generally due by 15 May 2026 (or 15 January 2027 for tax professionals)
Individual tax returns: Due by 31 October 2026 (or 15 May 2027 for registered tax agents)
Superannuation Guarantee Rate
The Superannuation Guarantee rate increased to 11.5% on 1 July 2024 and remains at this level for the 2025-26 financial year. This increased obligation affects your payroll costs, so ensure your accounting systems are correctly calculating employee super contributions. From 1 July 2026, the rate will increase to 12%, so now is the time to plan for this additional expense.
Action Steps for Business Owners
Review your business structure to ensure it's still tax-effective given current rates
Plan capital expenditure strategically around the instant asset write-off provisions
Update payroll systems to ensure superannuation calculations are accurate
Schedule quarterly BAS reviews to maintain cash flow and avoid surprises
Consult with your accountant before June 30 to implement year-end tax strategies
Need help navigating these changes? At Lloyd & Co Accountants in Hawthorn, we specialize in helping Melbourne small businesses stay compliant while minimizing their tax burden. Contact us today to schedule a consultation and ensure your business is positioned for success in the 2025-26 financial year.
