On 25 June 2026, the Senate officially referred the Tax Reform No 2 Bill to the Senate Economics Legislation Committee for an inquiry.
Here are the three most critical components under review that will impact your business strategy.
1. Making the $20,000 Instant Asset Write-Off Permanent
The bill aims to make the $20,000 instant asset write off permanent:
– The News: Schedule 2 of the Bill permanently extends the $20,000 instant asset write-off from 1 July 2026. It applies to up to 4.1 million small businesses with an aggregated annual turnover of less than $10 million.
– The Benefit: You can immediately deduct the full cost of multiple eligible assets—such as technology, vehicles, or machinery—purchased for less than $20,000. Assets valued at $20,000 or more can be seamlessly placed into the small business simplified depreciation pool.
– The EMspire Tip: Because this measure is becoming permanent, the pressure to “panic buy” equipment right before June 30 will disappear.
2. A Permanent Two-Year Loss Carry-Back Cash Safeguard
To smooth out the impacts of economic cycles and supply chain disruptions, the government is introducing a robust cash flow safety net for corporate entities.
– The News: Schedule 1 introduces a permanent 2-year loss carry-back regime for companies with an annual global turnover of less than $1 billion, backdated to apply from 1 July 2026.
– The Benefit: If your company incurs a revenue tax loss, you don’t just carry it forward to offset future profits. Instead, you can choose to carry that loss back and offset it against tax you already paid up to two years earlier, triggering an immediate refundable tax offset.
– The EMspire Tip: This refund is strictly limited by your company’s franking account balance at the end of the year. To make sure your company can tap into this cash injection during a temporary downturn, it is critical to keep financial records and franking account balances up to date.
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.