03 Jun Tax time tips: What businesses and individuals need to know in 2026
Between rising costs, ongoing business pressures and looming tax changes, EOFY planning matters more than ever this year. And we’re here to help.
Here are some of the key tax considerations you need to be across for your business and personal finances.
For businesses
From instant asset write-offs to payday super reforms, here’s what you need to know (and action) before 30 June if you’re a business owner.
1. Eligibility for the $20,000 instant asset write-off
For small businesses feeling the pressure of rising costs, the extension of the $20,000 instant asset write-off until 30 June 2026 is welcome news. It is also very likely that it will be permanently extended into future years.
To be eligible, your business must:
- Have an annual turnover of less than $10 million
- Use the simplified depreciation rules
- Purchase an asset that’s less than $20,000
- Install or start using the asset before 30 June 2026
2. Electric vehicles (EVs) still offer fringe benefits tax opportunities
Eligible EVs can help reduce fringe benefits tax (FBT), which makes them worth considering if you’re reviewing company vehicles or salary packaging arrangements before EOFY.
However, most plug-in hybrid electric vehicles (PHEVs) no longer qualify for the FBT exemption, unless transitional rules apply.
Businesses with existing EV or PHEV arrangements should review them before 30 June to avoid unexpected tax costs.
3. Payday super is coming – and you should prepare now
Are you still paying your employees’ superannuation quarterly?
From 1 July 2026, businesses will need to pay super at the same time as salary and wages under the new payday super reforms.
As part of the reforms, the Small Business Superannuation Clearing House (SBSCH) will permanently close on 1 July 2026. If you currently use SBSCH, you’ll need to move to another payment service before then to make sure you can continue meeting your super obligations.
The ATO has released a guide to transitioning away from SBSCH. We recommend choosing a new payment method as soon as possible and saving your records from SBSCH before it closes.
It’s also a good time to review your payroll processes and cashflow management ahead of the changes.
For individuals and investors
From work-from-home deductions to super contribution strategies, there are several important EOFY considerations for individuals and investors this year.
1. WFH deductions require stronger records
With flexible work arrangements now common for many Australians, the ATO is continuing to tighten its approach to work-from-home deductions.
To claim a deduction, you must be genuinely working from home – with records of the actual hours worked throughout the income year. Estimates and short sample periods are no longer enough.
There are two ways to calculate your claim. Under the fixed-rate method, you can claim 70 cents per hour worked from home. Or you can use the actual cost method, which allows you to claim the work-related portion of household expenses such as electricity, gas and internet.
If you use the actual cost method, you’ll need detailed records showing how you divided each cost between personal and work use. You’ll also need invoices or statements for each expense you claim, along with evidence that you paid it.
If the invoice isn’t in your name, you may need supporting records to show that you incurred the cost.
2. Catch-up super contributions are still available
Making extra super contributions before EOFY can be a win-win – helping boost your retirement savings while potentially reducing your tax bill.
If you haven’t used your full concessional contributions cap in previous years, you may be able to carry forward unused amounts and make additional ‘catch-up’ contributions.
In general, this strategy is available to people with a total super balance of less than $500,000 on 30 June of the previous financial year. Additional eligibility rules may also apply, particularly for those aged 67 and over.
Because the rules can be complex, it’s worth seeking advice before making extra contributions.
3. Division 296: What high-balance super members should know
The new Division 296 tax rules are set to take effect from 1 July 2026 and will affect individuals with more than $3 million in super as at 30 June 2027.
Under the changes, additional tax may apply to earnings linked to the portion of a super balance above $3 million. Higher balances may attract a higher rate of tax.
The first assessments are not expected until the 2027–28 financial year. Once an assessment it issued, you can choose to pay the tax yourself or withdraw funds from your super to cover the liability.
Given the complexity of the new rules, you may benefit from reviewing your super arrangements well before the changes take effect.