Business | Kasker Associates

Latest Tax changes 2026/2027

Sophie — Mon, 22 Jun 2026 00:23:00 +0000

The corporate tax rate for companies are base rated entities is 25% from the 2022 and future years.
Work from home fixed rate
- The fixed rate for work from home expenses for 2025-26 – is 70c per hour.
Cents per kilometre increase
- The cents per kilometre rate for work-related car expenses for 2025-26 is 91c per kilometre.
Electric vehicle home charging rate – plug-in hybrid electric vehicles – From 1 July 2024, if you own and use a plug-in hybrid electric vehicle (PHEV) you can use the EV home charging rate to calculate the cost of charging your PHEV at home.
- To use the EV home charging rate of 5.47c per kilometre to determine the cost of your electricity, you must:
  1. have kept the relevant records for the income year
  2. be claiming your car expenses using the logbook method or claiming your actual work-related vehicle expenses.
  3. If you choose to use this rate and your vehicle doesn’t have the ability to accurately determine the home charging percentage, you can’t claim commercial charging station costs you incurred during the income year as a separate deduction.
- Alternatively, you can choose to claim the electricity used for charging your PHEV by determining the actual cost incurred. Owners of zero emissions electric vehicles (EVs) can continue using the EV home charging rate provided they meet the relevant requirements.
- (This guidance doesn’t apply to electric motorcycles or electric scooters).
From 1 July 2026, taxpayers won’t need receipts to claim a deduction of less than $1,000 for work-related expenses in their tax return (it is still $300 limit until 30 June 2026 FY). While the ATO won’t ask you for receipts if your claim is below this amount, they may still ask you to explain what it was, how you paid for it, and how it is related to your work.
From 1 July 2025 and same in 2027 FY, Employer Superannuation Guarantee is to be increased from 12% of the gross wages.
Businesses’ Instant write-offs
- As part of the Federal Government’s Coronavirus Stimulus Package, the Instant Asset Write-Off threshold is $20,000 (GST inclusive) per asset acquired. This change applies to businesses with an aggregated annual turnover of less than $10 million, where those assets are first used or installed ready for use after 1 July 2024.
Payday Super starts from 1 July 2026
- From 1 July 2026, Employers pay super guarantee for each payday, instead of quarterly.
- Payments are due in employees’ super accounts within 7 business days after payday (unless longer applies, such as for new employees).
- The Small Business Superannuation Clearing House (SBSCH) will be closed. Businesses need to switch to an alternative provider before it shuts down permanently on 30 June 2026.
Housing tax incentives – build to rent developments
- The housing tax incentives give owners and investors in large-scale eligible build to rent developments access to an accelerated deduction of 4% for capital works relating to build to rent developments and a concessional final withholding tax rate of 15% on eligible fund payments (amounts referrable to rental income and capital gains from the build to rent development). For more information, see ATO: Build to rent development tax incentives.

2026 Federal Budget

Sophie — Mon, 22 Jun 2026 00:15:40 +0000

2026 Federal Budget – Tax-related topics:

(Below is new policy announcement – not yet legislated as law)

Personal Income Tax:

From 1 July 2026, the tax rate for income between $18,201 and $45,000 drops from 16% to 15%, then to 14% from 1 July 2027.
From 2027-28 FY, the new Working Australians Tax Offset kicks in being a $250 offset (tax credit) which directly reduces the amount of tax you owe.
From 2027 FY, many people will be able to claim a flat $1,000 deduction without keeping receipts (replacing $300 in the past).

Negative gearing (properties):

Negative gearing (where rental losses are deducted from taxable income) will be limited to new builds only.
Existing properties owned before Budget night (12 May 2026) are not affected.
Held property before the Budget night as a main residence and subsequently changing the property to rental, negative gearing will still be applicable.

Capital Gains Tax (CGT)

The Capital Gains Tax (CGT) discount will move from a flat 50% discount to an inflation-based model with a minimum effective tax of 30% on gains (waived in years you receive means-tested support, e.g. Age Pension, JobSeeker).
Assets held before July 1, 2027 and sold before 30 June 2026 will still have the old rules applied.
Assets include real estate, shares, managed funds, cryptocurrencies and most businesses.
Assets owned before 1 July 2027 get split treatment: 50% discount on the pre-2027 portion, indexation + 30% minimum on the post-2027 portion.
A legitimate valuation report is required for 1/7/2027. The ATO should be giving more guidelines for acceptable valuation reports at a later date.
Share prices and crypto prices published on 1/7/2027 by trusted online resources can be used.
New build election: Investors who buy a qualifying new residential build can elect either the old 50% discount or the new indexation + 30% minimum tax – whichever produces a better outcome. A subsequent buyer of the same property will lose this election.
A granny flat is not a treated as a new built home.
Knock down house and rebuild is not treated as a new built home as there is still one home on the same block of land. Exceptions apply to multiple dwellings (e.g. duplex or units).

Small businesses:

From 1 July 2026, the $20,000 (GST inclusive) instant asset write-off will become permanent, making it easier to immediately deduct the cost of business essentials like tools, equipment or vehicles.
The 50% capital gains tax discount for small businesses will be extended to those with a turnover of up to $10 million instead of $2 million.

Income Tax Rates

Sophie — Thu, 27 Jun 2024 06:01:31 +0000

2026–27 financial year

TAXABLE INCOME	Tax (not including 2% Medicare levy)
$0 – $18,200	0% (tax-free threshold)
$18,201 – $45,000	15% (down from 16%)
$45,001 – $135,000	30%
$135,001 – $180,000	37%
$180,001 and over	45%

These rates apply to Australian tax residents and are marginal, meaning each rate applies only to income within that bracket. The Medicare levy of 2% is additional, and Low Income Tax Offset (LITO) and other offsets may also apply

Foreign resident tax rates 2026–27 (same in 2024 and 2025 FYs)

Income up to $135,000	30%
Income from $135,001	37%
Income over $190,000	45%

2025–26 financial year

TAXABLE INCOME	Tax (not including 2% Medicare levy)
$0 – $18,200	0% (tax-free threshold)
$18,201 – $45,000	16%
$45,001 – $135,000	30%
$135,001 $180,000	37%
$180,001 and over	45%

Money Smart Tax Calculator:
https://moneysmart.gov.au/work-and-tax/income-tax-calculator

Latest tax changes 2025/26

Sophie — Thu, 27 Jun 2024 05:31:06 +0000

The corporate tax rate for companies are base rated entities is 25% from the 2022 and future years.
Work from home fixed rate: The fixed rate for work from home expenses for 2024–25 is 70c per hour.
Cents per kilometre increase
The cents per kilometre rate for work-related car expenses for 2024–25 is 88c per kilometre.
Electric vehicle home charging rate – plug-in hybrid electric vehicles
- From 1 July 2024, if you own and use a plug-in hybrid electric vehicle (PHEV) you can use the EV home charging rate to calculate the cost of charging your PHEV at home.
  - To use the EV home charging rate of 4.2c per kilometre to determine the cost of your electricity, you must:
    - have kept the relevant records for the income year
    - be claiming your car expenses using the logbook method or claiming your actual work-related vehicle expenses.
    - If you choose to use this rate and your vehicle doesn’t have the ability to accurately determine the home charging percentage, you can’t claim commercial charging station costs you incurred during the income year as a separate deduction.
  - Alternatively, you can choose to claim the electricity used for charging your PHEV by determining the actual cost incurred. Owners of zero emissions electric vehicles (EVs) can continue using the EV home charging rate provided they meet the relevant requirements.
    - (This guidance doesn’t apply to electric motorcycles or electric scooters).
From 2026, taxpayers won’t need receipts to claim a deduction of less than $1,000 for work-related expenses in their tax return (it is still $300 limit until 30 June 2026 F). While the ATO won’t ask you for receipts if your claim is below this amount, they may still ask you to explain what it was, how you paid for it, and how it is related to your work.
From 1 July 2024, Employer Superannuation Guarantee is to be increased from 11.5% of the gross wages.
From 1 July 2025, Employer Superannuation Guarantee is to be increased from 12% of the gross wages.
Businesses’ Instant write-offs:
1. As part of the Federal Government’s Coronavirus Stimulus Package, the Instant Asset Write-Off threshold is $20,000 (GST inclusive) per asset acquired. This change applies to businesses with an aggregated annual turnover of less than $10 million, where those assets are first used or installed ready for use after 1 July 2024.
“Technology Investment Boost” – deductions ended 30 June 2024.
Digitising “Taxable Payments Reporting” system
- From 1 January 2024, businesses can able to report Taxable Payments Reporting System data via their accounting software on the same lodgement cycle as their activity statements
Digitalising trust income reporting
- Trust and beneficiary income reporting and processing can digitalise with all trusts being provided with the option of lodging income tax returns electronically.
Selling and purchasing property
- From 1 January 2025 the foreign resident capital gains withholding (FRCGW) rate increased to 15% (ALL properties). Australian residents selling property need a clearance certificate to avoid having an amount withheld from the sale price.
Housing tax incentives – build to rent developments
- The housing tax incentives give owners and investors in large-scale eligible build to rent developments access to an accelerated deduction of 4% for capital works relating to build to rent developments and a concessional final withholding tax rate of 15% on eligible fund payments (amounts referrable to rental income and capital gains from the build to rent development). For more information, see ATO: Build to rent development tax incentives.

Small business instant asset write-off extension

Sophie — Thu, 27 Jun 2024 04:39:50 +0000

From 9 May 2023, the Instant Asset Write-Off threshold is $20,000 (GST inclusive) per asset acquired. This change applies to businesses with an aggregated annual turnover of less than $10 million, where those assets are first used or installed ready for use after 1 July 2024.

Small businesses, with aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use from 1 July 2024.

Small businesses that have claimed immediate deduction for an asset under the simplified depreciation rules in a prior income year can also immediately deduct an amount included in the second element (cost addition) of that asset’s cost, where the amount is:

the first amount of second element cost incurred after the end of the income year in which the asset was written off
less than $20,000
incurred the cost and ready to use the asset(s) within the financial year.

The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.

Assets valued at $20,000 or more can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2023–24 income year will be able to be written off.

(above information is from the ATO publication QC 72501)

New Work From Home Deduction Rules

Sophie — Tue, 27 Jun 2023 03:09:36 +0000

NEW WORK FROM HOME DEDUCTION RULES

From 1 July 2022, there are only two ways to claim deductions for ‘working from home’ expenses: the ‘fixed rate method’ or the ‘actual cost method’.

Three essential criteria:

the work must involve carrying on substantive employment duties or in carrying on business. Occasionally checking emails is not sufficient to meet this condition.
the taxpayer must have incurred deductible additional running expenses of a kind outlined below.
the taxpayer must meet the STRICT RECORD KEEPING requirement. The importance of actual records will be crucial – taxpayers cannot rely on estimations.

Method 1: Fixed Rate Method (from 2023 FY):

The ATO accepts the claim amount being 67 cents per hour working from home.

You should keep written records (diary or float chart) to record all of the work from home hours.

The fixed rate method covers the following expenses:

data and internet
mobile and home phone usage
electricity and gas
computer consumables (e.g. printer ink)
stationery.

That means, you can’t claim a separate deduction for any of the expenses the revised fixed rate includes.

What you can still claim separately:

the decline in value of assets used while working from home, such as computers and office furniture
the repairs and maintenance of these assets,
cleaning (only if you have a dedicated home office).

Method 2: Actual Cost Method:

If you have an “exclusive area for your work”, you may use the exact expense ratios to claim percentages of the running costs such as: home office equipment, computers, printers and telephones, heating, cooling and lighting; the costs of repairs to your home office furniture and fittings and portion of cleaning expenses. Employees cannot claim rent or mortgage repayments.

Calculating the cost base of real estate

Sophie — Fri, 19 Nov 2021 02:27:12 +0000

To calculate a capital gain or capital loss, you need to know the cost base of your asset. The basic rules are the same for all assets, but some additional rules apply to calculating the cost base or reduced cost base of real estate.

There are a few rules to keep in mind when you calculate your capital gain or capital loss from real estate, in particular rules relating to:

the costs of owning
cost base adjustments for capital works deductions.

Costs of owning

You do not include rates, insurance, land tax, maintenance and interest on money you borrowed to buy the property or finance improvements to it in the reduced cost base. You only included them in the cost base if:

you acquired the property under a contract entered into after 20 August 1991 (or, if you didn’t acquire it under a contract, you became the owner after that date), and
you could not claim a deduction for the costs because you did not use the property to produce assessable income – for example, it was vacant land, your main residence or a holiday home during the period.

Example

On 1 July 2010, Kris purchased a block of land for $240,000 (including legal fees, stamp duty and related expenses). On 30 June 2015, he sold it.

During the five years he owned the block, he paid $25,000 for rates, land tax and interest. As he did not use the land to generate any income, he could not claim a deduction for any of these expenses.

The cost base of the block of land is $265,000.

End of example

Work-related Travel Expenses

Sophie — Thu, 18 Nov 2021 09:01:16 +0000

In a general rule, travel expenses which are relevant to gain assessable income are deductible under s8-1 of ITAA to the extent that the expenses are not in a private or capital nature.

Travel within Australia:

A travel diary or similar documents are required for travel within Australia overseas if the employee, director or partner is travelling away from their ordinary residence for 6 nights or more.

No written evidence and travel records are required for travel within Australia if the person receives a travel allowance and claims no more than the amount considered reasonable by the ATO (TD2004/19).
http://law.ato.gov.au/atolaw/view.htm?docid=TXD/TD200419/NAT/ATO/00001

If there was no travel allowance paid by the employer, in other words, the allowance amount is not shown in the PAYG summary, the person claims more than the amount considered reasonable by ATO, all travel expenses must be substantiated.

Travel records include:

The nature of the trip
When does it begin?
The length of the trip, and
The destinations

Travel between home and work

In a general rule, travel between home and work is not deductible.

However the following situation may be deductible where:

Home is the place or employment and the travel is between two places of employments
The person’s employment effectively starts from home before leaving to the work place
Heavy tools or equipment stored must be stored at the person’s home at the end of each day and the person must take the equipment from home to his job each day
The person’s nature of work is of an itinerant nature and is required to go to different locations each day

Note: collecting mails on the way to work is not claimable as being insignificant.

Overseas travel

Employee s travelling overseas who received travel allowance still need to obtain written evidence of their travel expenses and detailed travel record if they are away from their ordinary residence for 6 nights or more. Regardless of the length of the trip when a reasonable claim is made, written evidence is required for overseas accommodation expenses, but not for food, drink and incidentals.

Crew members on international flights receiving travel allowance are excluded from this rule if they travel primarily outside Australia and the total expenses claimed do not exceed the ATO reasonable limits.

Reasonable claims for meals and incidentals when travelling overseas are only for employees who receive travel allowance. The reasonable amounts are available for employee only: TD2004/6.

http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR20046/nat/ato/00001

Claims for non-employees on business trip must be fully substantiated for claims to be deductible.

The following table contended in TR2004/6 provides a summary of the substantiation requirements:

	Domestic Travel		Overseas Travel
Travel Allowance received and:	Written evidence	Travel diary	Written evidence	Travel diary
The amount claims does not exceed the reasonable allowance amount:
1. Travel less than 6 nights in a row	No	No	No	No
2. Travel 6 or more nights in a row	No	No	No	Yes
The amount claims exceeds the reasonable allowance amount:
3. Travel less than 6 nights in a row	Yes – for the whole claim	No	Yes	No
4. Travel 6 or more nights in a row	Yes – for the whole claim	Yes	Yes	Yes

DISCLAIMER

Kasker Associates website is to provide information of general interest to their clients. The content of this website does not constitute specific advice. Readers are encouraged to consult their tax adviser for advice on specific matters.

Considering An Accounting Software?

Sophie — Wed, 03 Nov 2021 09:17:42 +0000

Managing your paperwork “more regularly” and “systematically” will surely save you a lot of time and tax bills.

Managing your small business is hard enough and staying on top of your finances is even harder. From sending invoices to paying bills, tracking expenses, managing daily transactions and paying. You are not an accountant and you do not have so much time to deal with numbers after a long day work.

A useful and easy operational accounting software can help you organising these tasks, so you can spend less time dealing with your finances and more time running your business. Remember that even having an accounting software, you will need to utilise it regularly by not putting off managing the tasks to the end.

If you are not the type of person who are able to cope with additional workload in dealing numbers, don’t worry. You will need more help from your bookkeeper and accountant to assist you to get your finance in order before they become out of control. You need to pay frequent visits to them or request them to meet you after-hour or at your premises if you are not able to leave your shop at all.

What to consider?

Every business will have different requirements from an accounting software. When choosing an accounting software consider the following:

Does the system calculate all payroll requirements (PAYE, annual leave, long service leave etc.)
Does the system track stock, work in progress, orders, jobs and other task management requirements
Will the system be able to handle multiple bank accounts
Does the system need to handle foreign currency
Does the system track separate financial records for each business or department within the business
Does the system allow for interface with other computer systems such as online payments
Does the system keep detailed records on customers including what they buy, how often they buy, when they buy etc (often referred to as a Customer Relationship Manager system).

Software options

There are many software packages on the market that allow business managers to successfully control records without an accounting degree. Some popular accounting systems used by small businesses are:

Setting up a bookkeeping system

When you set up your financial records you need to make sure they meet any compliance requirements such as GST or other tax compliance. This is done through setting up classifications, also known as a chart of accounts.

A chart of accounts is a listing of all the accounts needed to cover the financial transactions of the business. Classifications are used to separate profit and loss calculations to show where a business is making or losing money. It is also used to determine the overall financial position of a business in a balance sheet.

Getting advice

Even after you have set up your accounting system, you still need to check with your accountant or bookkeeper regularly so you know you are on the right track. It is always better to check with the professionals at the start of your business. A correct use of accounting software will save you time and tax bill for sure.

DISCLAIMER

Running your business

Sophie — Wed, 03 Nov 2021 09:05:19 +0000

Taxation obligations is important when starting up a new business.

If you were employed before you started your business, you’ll find that your tax affairs now become a lot more complicated.

Various federal, state and local government taxes and rates can apply, depending on the size and location of your business.

While you pay tax on your income, you can claim legitimate business expenses. These are costs necessarily incurred in running your business and include such items as advertising, bank charges, computer supplies, insurance premiums, postage, printing and stationery, staff training expenses, sub-contracting costs, technical journals, telephone and other communication costs, and travel.

You’ll need to keep records relating to all transactions for at least five years and, in the case of records relating to the fringe benefits tax, for seven years.

Your professional advisers will help you set up an accounting system that is appropriate for the nature and scale of your business.

Some of the taxes that apply when you are in business include the following:

Pay As You Go (PAYG Installment)

PAYG is a system for businesses to pay instalments of their expected tax liability on their business and investment income during the financial year. PAYG instalments are usually paid quarterly.

Pay As You Go (PAYG Withholding)

Employers withhold PAYG withholding tax on behalf of the employees. The employees can claim against the amount withheld at the end of the financial year (called tax return).

Business owners may also have to withhold from payments to:

other workers, such as contractors
businesses that don’t provide their ABN

Single Touch Payroll

From 1 July 2018 and 2019, employers are required to report employees’ payroll information to the ATO each time a payroll is made through a STP-enabled software. Payroll information includes:

salaries and wages
pay as you go (PAYG) withholding
superannuation

Super Stream (employer super guarantee)

SuperStream is the new mandatary way businesses pay employee superannuation guarantee contributions to their super funds electronically in one go via super clearing house/super stream format that offered by many finance institutions and super funds.

Employers are no longer able to contribute super guarantees to the employee’s super account separately as they used to do.

SuperStream transmits money and information consistently across the super system – between (1) employers, (2) funds, (3) service providers and (4) the ATO. The data is linked to the payment by a unique payment reference number.

employers can make all their contributions in a single transaction, even if they’re going to multiple super funds
contributions and rollovers can be processed faster, more efficiently and with fewer errors
employees can view their super payments on MyGov.

Many financial institutes (e.g. banks), most super funds, ATO clearing house and accounting software (e.g. XERO, MYOB, QuickBooks & Payroller) offer super stream services.

Fringe Benefit Tax

Fridge Benefit Tax (FBT) is paid by employers on certain benefits they provide to their employees or their employees’ family or other associates. FBT applies even if the benefit is provided by a third party under an arrangement with the employer.

FBT is separate to income tax and is calculated on the taxable value of the fringe benefit. The employer must self-assess their FBT liability for the FBT year (that is, 1 April to 31 March) and lodge an FBT return.
Employers can generally claim an income tax deduction for the cost of providing fringe benefits and for the FBT they pay. Employers can also generally claim GST credits for items provided as fringe benefits.

A fringe benefit is a ‘payment’ to an employee, but in a different form to salary or wages. They are benefits given to employees such as:

allowing an employee to use a work car for private purposes
giving an employee a discounted loan
paying an employee’s gym membership
providing entertainment by way of free tickets to concerts
reimbursing an expense incurred by an employee, such as school fees
giving benefits under a salary sacrifice arrangement with an employee.

The following are not fringe benefits:

salary and wages
shares purchased under approved employee share acquisition schemes
employer contributions to complying super funds
employment termination payments (including for example, the gift or sale at a discount of a company car to an employee on termination) · payment of amounts deemed to be dividends under Division 7A
benefits provided to volunteers and contractors
exempt benefits such as certain benefits provided by religious institutions to their religious practitioners.

Goods and Services Tax (GST)

You must register for GST if you are carrying on a business or enterprise and any of the following apply: your current or projected annual GST turnover is $75,000 or more ($150,000 or more for non-profit organisations), you provide taxi travel, you want to claim fuel tax credits, or you want to claim wine producer rebates. If your annual GST turnover is below $75,000, you can choose not to register for GST.

Where a business is registered, GST at the rate of 10 per cent must be added to the invoiced price of taxable supplies. The supplier collects GST from the customer. Only businesses registered for GST purposes can collect GST.

As a supplier, you may also be paying GST on purchases made to run your business. This can be claimed by way of what are known as input credits. You can account for GST on either a cash basis (when payment is received from customers) or an accruals basis (when customers are invoiced).

At the end of the period (monthly and quarterly options are available), your business will need to account for GST collected on taxable supplies and input credits which are being claimed. The difference between the two will determine the net GST to be paid or refunded. Reporting on this takes the form of a Business Activity Statement (BAS).

Every business needs to have an Australian Business Number (ABN). Businesses registered for GST are automatically given an ABN.

If you do not have an ABN, other businesses may be unwilling to deal with you because they may not be able to claim their GST input tax credits. Where an ABN cannot be quoted, other businesses will be required to withhold tax from payments made to you.

Lodging activity statements

Businesses use an activity statement to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Activity statements are also used by individuals who need to pay quarterly PAYG instalments.

Capital Gains Tax (CGT)

CGT is a tax imposed on any gains made on the disposal of an asset. There are special provisions for relief from CGT where the disposal of an asset occurs as the result of restructuring a business into a company. There are also special concessional provisions that relate to the disposal of a small business.

Before you purchase or sell an asset or a business, it is wise to seek professional advice to see if you qualify for any relief provisions. Professional advice can also help you plan ahead and manage your taxation responsibilities.

Your accountant or tax adviser will help you determine any other taxes that might affect you, including:

Income tax
Land tax
Payroll tax
Stamp duty
Fringe benefits tax
Superannuation guarantee levy.

Paperwork

Running a business inevitably involves some paperwork and you must make sure you comply with your tax obligations. By understanding the very basics, you can make this relatively pain free.

Managing invoices, payments and paperwork

When you operate a business, you have transactions where money flows into your business (receipts) and out of your business (payments). These transactions are supported by documents recording the details of the transactions, such as tax invoices, wages records, cheque butts and credit card statements. These documents contain the information you need to record, such as the date of each transaction, total payment or amount received or the amount of GST.

Managing cash flow

Cash flow is what keeps your business going. A good way to help make sure you have enough cash available at the right time to meet your tax, super and other obligations is to do a cash flow budget. We also have some tips to help you manage your cash flow better.

DISCLAIMER