What does the Budget mean for your business?

Permanent $20,000 instant asset write-off

The current $20,000 instant asset write-off will be made permanent.

Small businesses with turnover of under $10 million will be able to immediately deduct eligible assets costing less than $20,000.

This will help with cash flow, investment and planning. 

Working Australians Tax Offset

Australian workers, including sole traders, will receive an ongoing annual tax cut. The $250 Working Australians Tax Offset will apply from the 2027–28 financial year.

Tax loss carry back to support cash flow

From 2026–27, companies with a turnover of up to $1 billion can use their tax losses to claim a refund of tax they paid in the previous 2 income years.

Loss refundability for new startups

From 2028–29, small startup businesses in their first 2 years of operation will be able to get a refund for tax losses. The refund is up to the amount of fringe benefits tax and withholding tax paid on employee wages.

More flexibility with PAYG instalments

Businesses will be able to opt in to monthly PAYG instalments from 1 July 2027. 

The ATO’s dynamic instalments pilot is also being expanded. The pilot uses business software to more accurately calculate PAYG instalments.

These measures will make it easier for you to change your pay as you go (PAYG) instalments when business conditions change.

The Australian Government will also work with states and territories on reforms to payroll tax administration.

Minimum tax on discretionary trusts

A minimum 30% tax will apply to discretionary trusts from 1 July 2028. This will not apply to:

• primary production income, such as income from agriculture
• other types of trusts such as fixed trusts and charitable trusts.

Rollover relief will be available for 3 years from 1 July 2027. This will support businesses that want to restructure from a discretionary trust to another type of business structure.

More opportunities to access venture capital

From 1 July 2027, the government will expand venture capital incentives to reflect modern company valuations. This will give startup businesses more opportunities to access venture capital funding in larger amounts and over a longer period. 

Research and Development Tax Incentive (R&DTI) reforms

Reforms to the R&DTI will take effect from 1 July 2028.

The reforms will:

• simplify and better target R&D support for businesses by replacing the offset on supporting R&D activities with a higher offset for core activities
• provide greater support to young, fast-growing businesses by increasing the turnover eligibility threshold on the higher, refundable offset to $50 million
• support quality outcomes for R&D projects under $50,000 by requiring businesses to work with recognised research organisations
• encourage large firms to do their R&D in Australia by increasing the maximum expenditure threshold from $150 million to $200 million. 

Apprenticeship reforms 

The Australian Apprenticeships Incentive System will see some changes from 1 January 2027.

The reforms will:

• redirect employer incentives towards small and medium businesses
• change how priority occupations are chosen so they better align with national priorities. 

Faster skills assessment for migrant workers

Skills assessments for migrant trades workers will become faster, getting them into the workforce sooner.

Workplace relations support for small businesses

The Fair Work commission received $1.3 million to provide specialised support to small businesses navigating the fair work dispute resolution process and commission processes.  

More funding is available for:

• NewAccess for Small Business Owners 
• the Small Business Debt Helpline.

This will help support small business owners’ mental health and financial wellbeing.

The government is strengthening Australia’s fuel security and providing support for businesses impacted by events in the Middle East.