Tax Time 2026: Key Reminders for Small Businesses

With the end of the financial year fast approaching, the Australian Taxation Office (ATO) has released updated guidance to help small businesses prepare for tax time and stay on top of their tax and superannuation obligations.

The ATO's latest Small Business Tax Time Toolkit provides practical information on a range of topics, including deductions, record keeping, superannuation obligations and changes that will impact businesses from 1 July 2026.
 

Payday Super Starts 1 July

One of the most significant changes for employers is the introduction of Payday Super. From 1 July, employers will be required to pay employees' superannuation contributions at the same time as wages are paid.

While the change is designed to improve retirement outcomes for employees, it will have cash flow implications for many businesses, particularly those operating in industries where payment terms can extend to 30, 60 or even 90 days.

Businesses are encouraged to review their payroll systems and processes now to ensure they are prepared for the transition.

Interest Charges No Longer Deductible

The ATO has also reminded businesses that the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) are no longer tax deductible. This makes it even more important for businesses to lodge and pay on time wherever possible.

If your business is experiencing financial difficulties, engaging with the ATO early may help avoid additional costs and compliance issues.

Common Tax Time Topics

The toolkit also provides guidance on:

• Claiming home-based business expenses
• Vehicle and travel expense deductions
• Software subscriptions and digital tools
• Record keeping requirements
• Tax considerations when withdrawing money from a company or trust
• Closing or winding up a business

Businesses operating from home should also be aware of potential capital gains tax implications when selling their property.

Resources Available

The toolkit includes links to calculators, online learning resources, and other practical tools to help business owners understand their obligations and prepare for tax time: Click here

MPAQ encourages members to speak with their accountant or tax adviser if they are unsure how these changes may impact their business. Members can also access support through Xact Accounting. MPAQ members are eligible for a free consultation, along with discounts of up to 25% on accounting, bookkeeping, taxation, and profit coaching services. To arrange a free consultation, contact the Master Plumbers Members Hotline on 07 3124 8666 or visit the MPAQ website for details.