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.
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.
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.
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:
Employers are encouraged to review payroll systems, processes and cash flow implications now to ensure a smooth transition.
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.
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.
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.
Finally, the ATO is encouraging businesses to review access to their online accounts as part of good governance and fraud prevention.
Business owners should:
Keeping access controls up to date is a simple but effective way to reduce the risk of unauthorised activity.
Source: www.ato.gov.au
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