What Should Brisbane Small Business Owners Know About the 2026–27 Tax Changes?
The 2026–27 Federal Budget introduced major changes for Queensland small businesses, including the permanent instant asset write-off, Payday Super and loss carry-back. Those seeking small business tax advice in QLD should confirm which measures are already law before making plans for the year.
This article provides general information only and does not constitute personal financial or tax advice. Speak with a qualified adviser before making decisions based on the measures described below.
What Changed on 1 July 2026?
From new tax measures to changes in superannuation and payroll obligations, the 2026–27 financial year brings several developments for Brisbane businesses to consider. A small business accountant in Brisbane can help you understand which changes are already in force, which remain proposals and how they may affect your planning.
Several major federal tax measures took effect or were announced for small businesses from 1 July 2026, forming part of a $3.5 billion business tax relief package outlined by the Treasurer. The table below summarises the key changes, their eligibility requirements, and their current legislative status.
| Measure | Effective date | Who is eligible | Status |
| Permanent $20,000 instant asset write-off | 1 July 2026 | Aggregated turnover under $10 million | Announced — not yet legislated |
| Payday Super | 1 July 2026 | All employers with SG obligations | Law — in force |
| Permanent two-year loss carry-back | 1 July 2026 | Corporate tax entities with turnover under $1 billion | Announced — not yet legislated |
| Dynamic PAYG instalments | 1 July 2027 | Businesses opting in via accounting software | Announced — not yet legislated |
| National minimum wage increase (4.75%) | 1 July 2026 | All employees on award/minimum wages | In force |
It is important to note that while Payday Super is legislated and commenced on 1 July 2026, several other measures — including the permanent write-off and loss carry-back — have been announced but await passage through Parliament. Businesses can plan for these measures but may need to adjust if final legislation differs from the announcements.
How Does the Permanent $20,000 Instant Asset Write-Off Work?
Small businesses with an aggregated turnover of less than $10 million can deduct the full cost of eligible depreciating assets costing less than $20,000, provided the asset is first used or installed ready for use in the relevant income year. The measure is being made permanent from 1 July 2026, replacing the annual extensions businesses have relied on in previous years.
To be eligible, a business generally needs to meet the following conditions:
- Aggregated annual turnover of less than $10 million
- The asset costs less than $20,000 (each asset assessed individually)
- The asset is first used, or installed ready for use, during the income year
- The business uses the simplified depreciation rules
According to the Treasurer’s announcement, making the write-off permanent is expected to deliver around $890 million in cash flow support over five years, reduce compliance costs by approximately $32 million per year, and save small businesses an estimated 366,000 hours on record keeping.
The 5-year lockout rule for re-entering simplified depreciation also remains suspended until 30 June 2027, which means businesses that previously opted out can re-enter the simplified system without penalty during this period. This measure was announced in the May 2026 Budget but has not yet been legislated — the ATO has published guidance on the basis that the measure will proceed as announced.
What Is Payday Super and How Does It Affect Employers?
From 1 July 2026, employers must pay their employees’ superannuation guarantee contributions each payday rather than quarterly — this is now law and is already in force. Super is calculated at 12% on an employee’s “qualifying earnings,” a new term that replaces the previous Ordinary Time Earnings (OTE) concept.
| Requirement | Previous rules (before 1 July 2026) | Payday Super (from 1 July 2026) |
| Payment frequency | Quarterly (within 28 days of quarter end) | Each payday |
| Calculation basis | Ordinary Time Earnings (OTE) | Qualifying earnings |
| Payment deadline | 28 days after quarter end | 7 business days after payday |
| Fund allocation window | Up to 20 business days | 3 business days |
A contribution is on time if it is received by the employee’s super fund — with all necessary information to allocate it — within 7 business days after paying the employee. Super funds, in turn, must allocate or return contributions within 3 business days, significantly reduced from the previous 20-day window.
The ATO has indicated it will take a supportive compliance approach during the first year of Payday Super. However, employers on Brisbane’s Northside and throughout Queensland may wish to review their payroll systems and clearing house arrangements to ensure they can meet the tighter deadlines consistently.
For employers, adapting to Payday Super involves more than increasing payment frequency—it also requires reliable systems and sufficient cash flow on every pay cycle. Financial Strategies Group can assist businesses across Brisbane’s Northside in reviewing their payroll and financial processes so they are better positioned to manage the transition.
How Does the Permanent Loss Carry-Back Work?
Corporate tax entities with an aggregated annual global turnover of less than $1 billion can carry back a tax loss and offset it against tax paid in either or both of the two previous income years. This permanent reintroduction of the loss carry-back — first claimable in 2026–27 income tax returns — replaces the temporary COVID-era measure that had lapsed.
The measure is expected to benefit approximately 85,000 companies across Australia, providing cash flow support during years when a business makes a loss rather than requiring the loss to be carried forward indefinitely.
For Brisbane small businesses operating through a company structure, the practical effect is that a loss in 2026–27 could generate a tax refund based on the 25% base rate entity tax paid in 2024–25 or 2025–26. This may be particularly relevant for businesses investing in growth or experiencing a temporary downturn. Like the permanent write-off, this measure was announced in the May 2026 Budget and has not yet been legislated, and sole traders and partnerships are not eligible — the loss carry-back applies to corporate tax entities only.
What About Queensland-Specific Obligations?
Queensland businesses with annual Australian taxable wages above $1.3 million are liable for state payroll tax at a rate of 4.75% for employers paying $6.5 million or less in taxable wages, or 4.95% for those above that threshold. A 1% regional employer discount is available until 30 June 2030 for qualifying regional businesses, and a mental health levy also applies to employers above separate wage thresholds. These rates and thresholds have not changed for 2026–27.
With the national minimum wage increasing by 4.75% from 1 July 2026, some growing businesses on Brisbane’s Northside may find themselves approaching the payroll tax threshold for the first time. A tax accountant in Brisbane can help model whether your wage bill is likely to trigger a registration obligation.
What Else Is Coming in 2027 and Beyond?
Several additional measures are scheduled for future income years, giving Brisbane businesses time to plan. These have been announced but are not yet legislated:
- Dynamic PAYG instalments (from 1 July 2027): Businesses will be able to opt in to monthly PAYG instalments via their accounting software, aligning instalments with real-time business conditions rather than fixed annual estimates.
- Expanded CGT concession threshold (from 1 July 2027): The turnover threshold for the existing small business 50% active asset CGT reduction is increasing from $2 million to $10 million, potentially benefiting many more business owners at sale.
- Working Australians Tax Offset (from 2027–28): A $250 tax offset for sole traders and wage earners, commencing in the 2027–28 income year.
- Loss refundability for start-ups (from 2028–29): Start-ups with turnover under $10 million may be able to receive a refund for tax losses in their first two years of operation.
These forward-looking measures are worth noting for longer-term planning, even though they may be subject to amendment before legislation passes.
How Can Brisbane Small Businesses Prepare?
Reviewing current systems, asset registers, and cash flow forecasts now can help businesses on Brisbane’s Northside manage the transition smoothly. In general terms, the following steps may be useful:
- Confirm your payroll software and clearing house can process super payments within the 7-business-day Payday Super deadline.
- Review your asset register and identify any planned purchases under $20,000 that may qualify for immediate deduction once the permanent write-off is legislated.
- If your business operates through a company, check whether any prior-year tax paid could be refundable under the loss carry-back provisions.
- Monitor your annual wages against the $1.3 million Queensland payroll tax threshold, particularly given the minimum wage increase.
- Speak with a qualified adviser about how these changes interact with your specific circumstances.
About the author: Paul Young is Financial Strategies Group’s Business Growth Adviser and AI Solutions Consultant. A Xero Certified Partner who studied Business Accounting at Monash University, Paul has more than 25 years of business and accounting experience. His background includes taxation, finance, business coaching, property investment, tax planning and financial strategy. Based in Brisbane, he now specialises in helping professional-services firms improve business growth, operations, and client acquisition. Financial Strategies Group serves clients through offices in Brisbane’s Northside, the Sunshine Coast and the Gold Coast.
Frequently Asked Questions
Is the $20,000 instant asset write-off available now?
The ATO has published guidance on the basis that the $20,000 instant asset write-off will be permanent from 1 July 2026, but the measure has not yet passed through Parliament. Businesses with aggregated turnover under $10 million can plan based on the announcement, though final eligibility will depend on the legislation as enacted. If you are unsure how this applies to your situation, a small business accountant in Brisbane can help you assess your position.
What happens if I miss a Payday Super deadline?
Contributions must reach the employee’s super fund within 7 business days of payday to be considered on time. Missing deadlines may result in a superannuation guarantee charge, although the ATO has indicated a supportive compliance approach during year one. Setting up automated payment processes through your payroll software can help avoid late payments — a tax accountant in Brisbane can assist with system configuration.
Can sole traders claim the loss carry-back?
No. The permanent loss carry-back is available to corporate tax entities only — this means companies and, in some circumstances, corporate limited partnerships. Sole traders and partnerships are not eligible, though they may benefit from the separate $250 Working Australians Tax Offset from 2027–28. A small business accountant in Brisbane can advise on whether a change of structure could improve your tax position.
What is the company tax rate for small businesses in 2026–27?
Base rate entities — companies with aggregated turnover under $50 million and no more than 80% passive income — are taxed at the 25% base rate entity tax rate. All other companies are taxed at 30%. These rates are unchanged for 2026–27. Understanding which rate applies is important for calculating the value of any loss carry-back refund — contact a small business accountant in Brisbane for guidance on your entity classification.
Do I need to pay payroll tax in Queensland?
Queensland payroll tax applies when your annual Australian taxable wages exceed the $1.3 million threshold. The rate is 4.75% for employers paying $6.5 million or less in wages, with a regional discount of 1% available until 30 June 2030. With the 2026 minimum wage increase, some growing businesses may approach this threshold — seek small business tax advice in QLD if you are unsure about your obligations.
What are Dynamic PAYG instalments?
Dynamic PAYG instalments are a proposed reform that would allow businesses to opt in to adjusted tax instalments from 1 July 2027, aligning payments with real-time business conditions via accounting software rather than relying on fixed annual estimates. The measure has not yet been legislated. Discuss how this may affect your cash flow planning with a tax accountant in Brisbane.
How much is the Working Australians Tax Offset for sole traders?
The Working Australians Tax Offset is a $250 annual tax offset for sole traders and wage earners, commencing in the 2027–28 income year. It has been announced but not yet legislated. For broader tax planning across multiple income years, small business tax advice in QLD from a qualified adviser can help you make the most of available offsets.
Ready to Navigate the 2026–27 Tax Changes?
The 2026–27 income year brings meaningful changes to how Brisbane small businesses manage assets, superannuation, and tax losses. Whether you need help reviewing your Payday Super compliance, identifying assets eligible for the permanent write-off, or modelling a loss carry-back claim, Financial Strategies Group’s team works with business owners across Brisbane’s Northside to develop tailored strategies. Visit our small business accountant page to learn how we can help, or book an initial consultation to discuss your situation.