The Federal Treasurer delivered the 2025-26 Budget in March 2025. Here are the key measures that affect small businesses.
Key Highlights for Small Business
- Instant asset write-off — the $20,000 instant asset write-off threshold for small businesses has been extended.
- Energy incentive — a bonus 20% deduction for eligible energy-efficiency improvements (e.g., electrifying heating/cooling, upgrading to more efficient appliances).
- Tax cuts — personal income tax cuts flow through to sole traders and partners. Revised tax brackets reduce the tax burden for individuals earning between $45,000 and $200,000.
- Superannuation — the super guarantee rate continues its legislated path to 12% (reached in July 2025).
- Skills and training — continued investment in vocational education and apprenticeship incentives.
What This Means for You
If you’re planning equipment purchases, now is the time to take advantage of the instant asset write-off. Review your tax planning strategy with the new brackets in mind, and ensure your payroll system reflects the current super rate.
Need Help?
Talk to our team about how the Budget changes affect your specific situation.