The 2026–27 federal budget landed on 12 May 2026 with some of the most significant tax changes in years.
If you run a business in regional Australia, here’s what matters most and what you should be doing before 30 June.
The $20,000 instant asset write-off is now permanent
Small businesses with turnover under $10 million can write off assets valued under $20,000, and from 1 July 2026, this is permanent. No more uncertainty each year about whether it’ll be extended.
If you’ve been holding off on investing in equipment, tools, or machinery, this is a good time to revisit that decision with your accountant.
Big changes to capital gains tax – act before 1 July 2027
This is one of the most significant reforms in the budget. From 1 July 2027, the 50% CGT discount for assets held more than 12 months will be replaced by cost base indexation, with a 30% minimum tax on net capital gains. This applies to individuals, trusts, and partnerships.
The good news: gains accrued before 1 July 2027 are protected by transitional arrangements. If you’re planning to sell a business asset or investment property, timing matters. Selling before July 2027 could mean significant tax savings.
Discretionary trusts face a new minimum tax (but farming income is protected)
From 1 July 2028, trustees of discretionary trusts will pay a minimum 30% tax on the trust’s taxable income. For many family businesses and farming operations, this is a big deal.
Importantly, primary production income is excluded from the minimum tax. If your farming income is distributed through a discretionary trust, this measure doesn’t apply to that income. But if your trust earns other types of income, you’ll want to understand the impact.
The government is also offering expanded rollover relief from 1 July 2027, giving businesses three years to restructure out of a discretionary trust if a different entity type, like a company or fixed trust, makes more sense.
To find out more about how this change might affect you, you can book a free appointment with Matt Meehan from our Farm Advisory office.
Loss carry back returns for companies
Had a tough year? From 1 July 2026, companies with global turnover under $1 billion can carry a tax loss back and offset it against tax paid in the previous two years. Rather than carrying a loss forward, this can generate a cash refund, a genuine lifeline for businesses that have done it tough.
Tax cuts for individuals and simpler deductions
From 1 July 2026, individuals can claim a standard $1,000 deduction for work-related expenses without receipts or itemisation, a handy simplification for employees and sole traders.
From 1 July 2027 a new $250 Working Australians Tax Offset will apply to salary, wage, and sole trader income.
R&D tax incentives: more generous support for innovative businesses
If your business invests in research and development, the government is making the R&D tax incentive more accessible and more rewarding from 1 July 2028. The offset for core R&D expenditure is increasing by around 25%, and the turnover threshold for the highest offset rate is lifting from $20 million to $50 million, meaning more growing businesses can access the top rate for longer.
The minimum claim threshold is also rising from $20,000 to $50,000. If you’re currently claiming smaller R&D amounts, it’s worth understanding how that affects your eligibility and whether partnering with a registered Research Service Provider makes sense for your situation.
This is particularly relevant for businesses in mining, energy, and environmental services. If you’re not sure whether your activity qualifies as R&D under the incentive, it’s worth having that conversation sooner rather than later.
What to do before 30 June
There’s still time to act before EOFY. If any of the above affects your business, whether it’s reviewing your trust structure, planning an asset sale, or making the most of the instant write-off, it’s worth having a conversation with your accountant now rather than later.
This article provides general information only and doesn’t constitute financial or taxation advice. Your individual circumstances will affect how these changes apply to you. Please speak with your accountant before acting on any information in this article.