July 2026 Tax Alert: Essential Changes and Implications for Taxpayers

With several important tax and compliance changes on the horizon, now is the time for businesses to review their obligations and prepare for what's ahead. From proposed tax deductions for technology investments and work-related expenses to the introduction of Payday Super from 1 July 2026, the latest ATO updates highlight a range of opportunities and responsibilities for business owners.

The ATO is also increasing its focus on GST reporting thresholds, fuel tax credit changes, digital lodgment requirements for partnerships, and business cybersecurity practices. Staying informed and taking proactive steps now can help businesses remain compliant and take advantage of potential tax benefits as new measures are introduced.

Check eligibility for tech booster deduction

Small businesses are being encouraged to review their eligibility for the government’s proposed Technology Investment Boost, although the legislation is yet to be passed.

Under the original proposal, eligible businesses could claim a bonus tax deduction of up to $2,000 for technology spending. This applies to investments exceeding $4,000 in areas such as digital systems, e-commerce platforms, cyber security and online marketing tools.

Businesses with an annual turnover of up to $10 million may qualify, with eligible expenditure incurred between 1 July 2025 and 30 June 2027.

While not yet law, reviewing planned or recent technology spending may help businesses act quickly if the measure is enacted.

Standard $1,000 deduction proposal

Another proposed measure is the introduction of a standard $1,000 deduction for work-related expenses, with draft legislation released for consultation.

If implemented from 1 July 2026, the deduction would be available to taxpayers earning employment income. Taxpayers with work-related expenses below $1,000 could claim the standard deduction without detailed receipts.

Importantly, existing rules will remain available for those with higher expenses or for individuals earning only business or investment income.

The proposed deduction would sit alongside other claims, meaning taxpayers could still separately deduct investment expenses, charitable donations, and union or professional association fees.

Preparing for Payday Super

With Payday Super due to get underway on 1 July 2026, the ATO has released checklists and guidance to help employers prepare.

The new regime will require super contributions to be paid at the same time as wages, rather than quarterly. To support the transition, the ATO has published resources covering:

• Key pre-implementation tasks
• Managing pay runs across the June–July transition period
• Single Touch Payroll reporting requirements
• Ongoing compliance under the new system

Employers are encouraged to review payroll systems, processes and cash flow implications now to ensure a smooth transition.

GST reporting thresholds in focus

The ATO is also reminding growing businesses to review their GST reporting obligations as turnover increases.

Businesses that reach $10 million in GST turnover must move from Simpler BAS to full BAS reporting and adopt a non-cash (accrual) accounting method for GST.

Once turnover reaches $20 million, GST reporting must shift from quarterly to monthly lodgment.

The ATO says it’s noticed some businesses are failing to update reporting methods after crossing these thresholds, and it will contact businesses directly.

Fuel tax credit rate changes

Taxpayers claiming fuel tax credits should ensure they are applying the correct rates following changes from 1 April 2026 to temporarily reduce fuel excise by 60.9 per cent.

As fuel tax credits are based on the excise duty payable on fuel, there will be different rates that apply before and after that date.

In addition, the heavy vehicle road user charge has been reduced to zero for the period 1 April to 30 June 2026.

Digital lodgment for partnerships

The ATO continues to expand digital reporting requirements, with all partnerships now required to lodge Statements of Distribution (SODs) electronically.

This applies regardless of the size of the partnership. Lodgment can be completed through standard business reporting-enabled software or via a registered tax agent.

The digital data enables the ATO to cross-check that partners are accurately reporting their share of income in their individual tax returns.

Strengthening business security

Finally, the ATO is encouraging businesses to review access to their online accounts as part of good governance and fraud prevention.

Business owners should:

• Regularly review authorised users in the Relationship Authorisation Manager
• Remove access for staff who have left or changed roles
• Check permissions for sensitive functions within ATO Online Services for Business and the Australian Business Register.

Keeping access controls up to date is a simple but effective way to reduce the risk of unauthorised activity.
Source: www.ato.gov.au
Business growth is an exciting milestone for any family enterprise, but maintaining strong family relationships requires intentional effort. Clear communication, defined roles, structured planning, and professional support are all critical to balancing business success with family harmony. A thriving family business is not measured solely by financial performance; it is also defined by the strength of the relationships behind it. By proactively addressing challenges and building strong foundations, families can continue to grow their business while preserving the trust, respect, and unity that made their success possible in the first place. Important information – Oracle Advisory Group makes no representation or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. The information in this document is general information only and is not based on the objectives, financial situation or needs of any particular investor. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek their own professional advice. Past performance is not a reliable indicator of future performance. The information provided in the document is current as the time of publication.