The 2026–27 Federal Budget included a range of measures relevant to small businesses, including changes to business investment, taxation and business structures. Key measures announced include making the $20,000 instant asset write-off permanent for eligible small businesses from 1 July 2026, as well as expanded tax loss carry-back arrangements.
The Budget also announced broader tax reforms that may affect some small businesses and family-owned enterprises, including proposed changes relating to discretionary trusts, capital gains tax arrangements and negative gearing settings. The proposed minimum 30 per cent tax on discretionary trusts is intended to commence from 1 July 2028, with transitional rollover relief proposed for some businesses seeking to restructure. Small business owners are encouraged to seek independent professional advice to understand how the measures may apply to their individual circumstances. The Australian Government and relevant agencies are expected to provide further information and guidance as implementation details are finalised.
