What is the instant asset write-off threshold in Australia for 2025-26?

The ATO says eligible small businesses with aggregated turnover under $10 million may be able to immediately deduct the business portion of eligible assets costing less than $20,000, provided the asset is first used or installed ready for use between 1 July 2025 and 30 June 2026. The $20,000 limit applies on a per asset basis.

What is the company tax rate in Australia for small businesses in 2025-26?

According to the ATO, the 2025-26 company tax rate is 25% for base rate entities and 30% otherwise. Whether a company qualifies as a base rate entity depends on turnover and the proportion of passive income, so Australian business owners should confirm eligibility before relying on the lower rate.

What is the super guarantee rate in Australia before and after 1 July 2026?

For the 2025-26 financial year, the super guarantee rate remains 11.5%. From 1 July 2026, it rises to 12%, and Payday Super is scheduled to begin from the same date, meaning Australian employers will need to pay super much closer to each pay cycle rather than quarterly.

When do Australian businesses need to buy equipment to claim the 2025-26 instant asset write-off?

For Australian small businesses using simplified depreciation, the asset must be first used or installed ready for use for a taxable purpose between 1 July 2025 and 30 June 2026. Ordering and paying a deposit before 30 June is not enough if the asset is not ready for use in time.

What should Australian small business owners review before 30 June 2026?

At a minimum, Australian owners should review debtors, creditor payments, payroll, super, trust distributions where relevant, bad debts, stock, asset purchases, director loan accounts and whether their accounting software is clean enough for fast lodgement after year-end.

How can Australian businesses prepare for Payday Super in 2026?

Australian employers should review payroll software, clearing house arrangements, fund details, pay cycle timing and cash-flow forecasting before 1 July 2026. The ATO has also confirmed the Small Business Superannuation Clearing House will close from 1 July 2026, so businesses relying on it need a replacement process.

EOFY Small Business Tax Checklist Australia 2026: Deductions, Super, Company Tax and 30 June Deadlines

EOFY Is Not Just About Tax, It Is About Control

For many Australian small businesses, the run to 30 June is treated like a paperwork problem. In reality it is a profit, cash-flow and risk-management problem.

The businesses that finish the year well are usually not the ones chasing deductions on 29 June. They are the ones that have already cleaned up their receivables, reviewed owner drawings, reconciled payroll, checked super, and made deliberate decisions about timing.

This matters even more in 2026 because a few settings are doing real work at once:

the ATO’s $20,000 instant asset write-off remains available for eligible small businesses for 2025-26
the base rate entity company tax rate remains 25%, while the standard company rate remains 30%
the super guarantee rate is moving from 11.5% to 12% on 1 July 2026
Payday Super is due to begin from 1 July 2026
the Small Business Superannuation Clearing House is scheduled to close from 1 July 2026

That means EOFY planning is not only about closing this year properly. It is also about making sure 1 July does not arrive with broken payroll processes and avoidable tax leakage.

Start With the ATO Rules That Matter Most

Instant asset write-off: the fine print matters

The ATO says eligible small businesses with aggregated turnover under $10 million may be able to immediately deduct the business portion of eligible assets costing less than $20,000 if the asset is first used or installed ready for use between 1 July 2025 and 30 June 2026.

Three details are easy to miss.

The threshold is less than $20,000, not $20,000 or less.
The rule applies on a per asset basis.
It is not enough to order or partially pay for the asset. It must be installed ready for use by 30 June 2026.

Assets costing $20,000 or more generally go into the simplified depreciation pool instead, with 15% depreciation in the first year and 30% in later years.

Company tax rates remain split

The ATO’s 2025-26 company tax rates still separate:

Company type	2025-26 tax rate
Base rate entity	25%
Otherwise	30%

That sounds straightforward, but owners still get caught assuming every small company automatically qualifies for 25%. Eligibility depends on the base rate entity tests, including turnover and passive income rules.

Super is about to get stricter

For 2025-26, the super guarantee rate is 11.5%. From 1 July 2026 it rises to 12%.

That half-point increase may sound small, but it adds up quickly.

Annual salary base	SG at 11.5%	SG at 12.0%	Extra annual cost
$70,000	$8,050	$8,400	$350
$100,000	$11,500	$12,000	$500
$150,000	$17,250	$18,000	$750
10 employees at $100,000 average	$115,000	$120,000	$5,000

That is before the administrative effect of Payday Super.

The 10-Point EOFY Checklist for Australian Small Businesses

1. Review profit before you review deductions

A deduction is only good if it fits the business. Spending $18,000 to save tax on $18,000 is still spending $18,000.

Before buying anything, ask:

does the business actually need it?
is the cash-flow impact manageable?
would the business still buy it without the deduction?
does financing the asset create pressure in a high-rate environment?

The tax tail should not wag the commercial dog.

2. Chase debtors and identify bad debts now

Profit does not pay wages, cash does.

The final quarter of the financial year is the right time to review aged receivables and decide what is collectible, what needs escalation and what may qualify as a bad debt write-off under the usual rules.

Debtor ageing bucket	Typical action before 30 June
0 to 30 days	Standard follow-up
31 to 60 days	Stronger collection contact
61 to 90 days	Payment plan or final reminder
90+ days	Assess recovery prospects and write-off position

Clean receivables improve both tax accuracy and business resilience.

3. Make asset purchases deliberately, not emotionally

The instant asset write-off is useful, but only when the numbers stack up. If the asset is $19,800 and genuinely needed, great. If it is a panic purchase because EOFY is close, step back.

Common examples that may qualify if the ATO criteria are met:

laptops and workstations
office fit-out items below threshold
tools and equipment
commercial appliances
some vehicles, depending on cost and other rules

Keep invoices, finance documents and evidence of install or ready-for-use dates.

4. Check super before the quarter ends

Super errors create more pain than many owners expect. Missing or late super can trigger non-deductibility issues and super guarantee charge exposure.

With Payday Super starting from 1 July 2026, this is a good time to stress-test the entire process:

are employee fund details current?
is payroll software ready?
do you know what will replace the SBSCH if you use it?
can your cash flow handle super moving closer to each pay event?

5. Review wages, bonuses and director remuneration timing

EOFY is also the time to decide whether salary, wages, bonuses or director payments should be recognised in this year or next year, subject to the relevant tax and payroll rules.

This needs coordination between the owner, payroll team and accountant. Poor timing can distort the profit result, create withholding issues or leave director loan accounts untidy.

6. Clean up director loans and owner drawings

This is one of the most overlooked items. Small businesses often treat the bank account like a personal wallet, then try to sort it out at year-end.

That creates problems for:

company loan account compliance
trust distribution clarity
lender reporting
tax planning credibility
management reporting

If there is a company involved, this review may also help identify Division 7A risk before it gets more expensive.

7. Reconcile inventory and work in progress

If you hold stock, EOFY without a stocktake is guesswork. If you run projects, work in progress also matters.

A realistic view of stock and WIP helps with:

profit measurement
gross margin accuracy
cash-flow forecasting
banking conversations
tax return integrity

8. Confirm your business structure is still fit for purpose

A structure that worked when turnover was $300,000 may not be ideal when it is $1.8 million. Likewise, a company may be fine, but trust or asset-protection issues may now justify a broader review.

EOFY is a natural checkpoint to ask whether the current structure still suits:

tax efficiency
succession planning
asset protection
borrowing strategy
ownership changes

9. Prepare for faster lodgement, not just year-end survival

The better your numbers are on 30 June, the faster your accountant can prepare accurate work after year-end.

That matters if you need:

a home loan or business loan
investor reporting
cleaner BAS forecasts
earlier tax planning for 2026-27

Messy books delay decisions. Clean books create options.

10. Build the 1 July plan now

EOFY planning is incomplete if 1 July arrives with no operating plan.

At a minimum, small businesses should model:

1 July 2026 change	Business impact
SG rate rises to 12%	Higher payroll cost
Payday Super begins	More frequent super funding
SBSCH closes	Need replacement payment process
New financial year budgets	Reset margins and cash forecasts

The businesses that prepare in April, May and June will handle the transition far more smoothly than the ones waiting for the first missed super deadline.

Common EOFY mistakes that cost more than they save

Buying assets just for the deduction

A tax deduction does not make a bad purchase good.

Leaving super too late

Super timing and processing delays can turn a planned deduction into a compliance problem.

Assuming the lower company tax rate applies automatically

The difference between 25% and 30% is meaningful. Check, do not assume.

Ignoring cash flow while focusing on tax

A profitable business can still get into trouble if quarter-one cash is weak.

Waiting until June to ask strategic questions

By late June, most strategic levers are already smaller than they were in April.

A practical timeline from now to 30 June 2026

April

review YTD profit
chase aged debtors
identify planned asset purchases
test payroll and super processes

May

finalise equipment decisions
review owner drawings and loan accounts
confirm structure and tax assumptions with accountant
complete stocktake planning

June

ensure eligible assets are installed ready for use
finalise super and payroll checks
reconcile bank accounts, debtors, creditors and inventory
lock in records needed for prompt year-end work

Final word

EOFY planning in Australia is not about finding one magical deduction. It is about making dozens of small decisions early enough that they still matter.

The best small business owners use this period to improve tax outcomes, clean up compliance, strengthen cash flow and set up the next financial year properly. In 2026, that matters even more because super rules and payment processes are about to tighten again.

If you want help reviewing deductions, company tax position, payroll setup or 1 July readiness, find a verified accountant on WealthWorks. If your EOFY plan also needs finance restructuring or a lending review, find a mortgage broker on WealthWorks to work alongside your accountant.