Blog

If you are a small Business operator, as the dust settles, you may be wondering how this Budget affects you. 

The Budget brought a mix of tax changes, regulatory reforms, and investment incentives. Depending on your Business circumstances, the announced measures can impact you differently.  

Blackburn Accounting can help navigate the changes and provide professional advice. To stay up to date, we are monitoring the latest announcements as they come to hand. Don’t second-guess or put it off. Contact us today. 

Instant Asset Write-off 

• The $20,000 Federal Government instant asset write-off will become a permanent tax scheme available to small Business owners. 

• This allows eligible small Business owners to claim immediate deductions for new or second-hand plant and equipment asset purchases, such as, tools, office equipment, and vehicles. 

• The assets must first be used or installed for use in the income year you are claiming for. 

Taxation of Trust Funds 

• A minimum tax of 30% on discretionary trusts will apply from 1 July 2028 (with some exceptions). No credits will be available to corporate beneficiaries for tax paid by trustees. 

• A three-year ‘rollover relief’ period will apply from 1 July 2027 to support small Business owners looking to restructure. 

Reintroduction of Loss Carry Back 

• Please note this scheme is not available to sole traders or Businesses structured as Trusts. 

• This tax scheme would allow incorporated entities to use a loss in the current year to receive refunds on tax paid in the previous two tax years. 

PAYG Instalment Reforms 

• From 1 July 2027, Businesses can opt in to monthly pay as you go (PAYG) instalment payments instead of the standard quarterly cycle. 

• Monthly amounts will be calculated automatically using ATO approved formulas embedded in accounting software, adjusting in real time to reflect actual income. 

• Businesses using these ATO approved calculators will be protected from penalty interest if instalment variations turn out to be unintentionally incorrect. 

Support for the small Business sector.  

Budget commitments aimed towards the Federal Government’s productivity agenda could potentially have flow-on effects for small Businesses. These include; 

• Company reporting requirements will be simplified, with regulators set to streamline data collections processes 

• Making all mandatory Australian Standards free, including across construction, work health and safety and product safety. 

• Making it easier to recognise the skills of migrant trades workers and to accelerate occupational licensing.  

• Working with State Governments to simplify payroll tax administration and improve national occupational licensing, making it easier for workers to move between states.