For our small business clients, the 2026–27 Budget is all about certainty, resilience, and reducing red tape. The latest announcements are designed to help you plan your investments with confidence and manage your cash flow more effectively.
- The $20,000 Instant Asset Write-Off is Now Permanent
This is the announcement many of our clients have been waiting for.
– The News: Small businesses with an aggregated turnover of under $10 million can now rely on the $20,000 instant asset write-off as a permanent fixture of the tax system.
– What it means: You can immediately deduct the full cost of eligible assets purchased for less than $20,000, rather than depreciating them over several years.
– The EMspire Tip: Because this is now permanent, you no longer need to “rush” a purchase before June 30 just to beat a deadline. You can now time your investments to match your actual cash flow needs throughout the year.
- Reintroduction of the Loss Carry-Back Regime
To support businesses through leaner years, the government is bringing back a vital cash flow safety net.
– The News: From 1 July 2026, companies with a turnover of less than $1 billion can “carry back” a tax loss to offset it against tax paid up to two years earlier.
– The Benefit: Instead of waiting years to use a loss against future profits, you can generate an immediate refund of previously paid tax to provide a cash injection when you need it most.
– The EMspire Tip: This measure is expected to benefit up to 85,000 companies annually, helping them stay resilient through temporary economic shocks.
- Dynamic Monthly Business Tax Payments
Managing quarterly “tax shocks” is a common pain point for our clients. The government is finally introducing more flexibility to the PAYG system.
– The News: From 1 July 2027, small and medium businesses will be able to opt-in to monthly PAYG instalments.
– Real-Time Data: You will be able to use ATO-approved calculations embedded in your accounting software to ensure your tax instalments accurately reflect your real-time business activity.
– The EMspire Tip: Transitioning to monthly payments can turn tax into a regular, manageable cost rather than a looming quarterly bill. We recommend adopting a “real-time” digital mindset now to prepare for this shift.
A Note for Startups and EV Owners The government is also introducing “loss refundability” for small start-up companies from July 2028 and is phasing in new FBT rules for electric vehicles, which will move to a permanent 25% discount by 2029.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.