April 2026 | Australian Accounting & Tax Update
The next few months are shaping up to be one of the most consequential periods for small business compliance in recent memory. Between Payday Super on the horizon, a tax income rate cut coming in July, a critical asset write-off deadline, and another wage review cycle underway, there is a lot to track, and the cost of missing any of it is significant.
Here is a clear-eyed breakdown of what is changing, when, and what you should be doing about it now.
Payday Super: The Biggest Payroll Overhaul in Decades
From 1 July 2026, Australian employers must pay superannuation guarantee (SG) contributions at the same time as wages , not quarterly, as is currently the case. If you pay staff weekly, super must go weekly. Fortnightly payroll means fortnightly super. And critically, contributions must be received by the employee’s super fund within seven business days of each payday.
This reform , known as Payday Super , is the result of the Treasury Laws Amendment (Payday Superannuation) Bill 2025 and represents the most significant change to employer super obligations in a generation. The intent is to reduce the chronic problem of unpaid super and to give the ATO real-time visibility through Single Touch Payroll (STP) reporting.
What else is changing alongside it?
- Qualifying Earnings (QE) replaces Ordinary Time Earnings (OTE) as the basis for calculating super , payroll systems will need to reflect this.
- The Maximum Contribution Base shifts from a quarterly cap to an annual cap, meaning your payroll software must track cumulative earnings across the full financial year.
- The Super Guarantee Charge (SGC) is being redesigned to apply per pay period. Late contributions will attract compounded notional earnings, an administration uplift, and potential choice loadings. Critically, SGC penalties are non-deductible , making non-compliance doubly painful.
- The ATO’s Small Business Superannuation Clearing House (SBSCH) will close on 1 July 2026. If your business currently uses this free service, you need to migrate to a SuperStream-compliant alternative before the deadline.
The cash flow reality
Treasury itself has acknowledged that some businesses have been using quarterly super as a short-term cash flow tool. That flexibility disappears entirely from 1 July. Research suggests more than one in five SMEs could face cash flow pressure under the new regime , particularly those in hospitality, retail, and construction, where payrolls are large, irregular, or heavily casual.
The ATO has confirmed it will take a risk-based approach to compliance during the first year (1 July 2026 to 30 June 2027), with education the primary focus for businesses making genuine efforts to comply. But that is not an invitation to be unprepared.
What to do now
- Audit your payroll software , confirm with your provider that it will be Payday Super-ready before 1 July.
- Exit the SBSCH early , do not wait for the 30 June deadline. Transition to a compliant clearing house or integrated payroll solution now.
- Reforecast your cash flow , model what your super obligations look like on your current pay cycle frequency and ensure funds are available at each payroll event.
- Review contractor arrangements , some contractors fall within the extended definition of employee for SG purposes and will be captured by Payday Super.
- Communicate with employees , particularly where the timing or reporting of super contributions will look different from what they have been used to seeing.
Act Before 30 June: The $20,000 Instant Asset Write-Off Expires
Parliament passed legislation in November 2025 extending the $20,000 instant asset write-off through to 30 June 2026. After that date, the threshold drops back to the legislated baseline of just $1,000 , unless the incoming government acts to extend it again.
The write-off allows small businesses with aggregated annual turnover below $10 million to immediately deduct the full cost of eligible assets in the year of purchase, rather than depreciating them over multiple years. The $20,000 limit applies per asset, so multiple qualifying purchases can each be written off in full in the one financial year.
What qualifies?
Almost any tangible asset used in the business: tools and equipment, computers and tablets, office furniture, point-of-sale systems, kitchen equipment, and more. Assets purchased under a chattel mortgage qualify; those under a lease arrangement do not. If an asset has mixed business and private use, only the business-use percentage is deductible , but the entire cost of the asset must still be under $20,000.
There is one critical timing rule that catches business owners out each year: the asset must be first used or installed ready for use by 30 June 2026 , not merely purchased. Ordering equipment in late June with a July delivery date means no claim this financial year. Plan purchases with enough lead time to ensure they are operational before the deadline.
Pool balances under $20,000 at the end of the 2025–26 income year can also be written off in full under the simplified depreciation rules , a useful final clean-up opportunity if you have small residual pool balances sitting from prior years.
Industry bodies including COSBOA have called for a permanent write-off at a higher threshold, arguing the annual extension cycle creates unnecessary uncertainty for business planning. For now, the window is open , but it closes on 30 June.
Income Tax Rate Cut From 1 July 2026
From 1 July 2026, the personal income tax rate for the $18,201–$45,000 income band reduces from 16% to 15%. This follows the Stage 3 cut that took effect from 1 July 2024, which brought the same band down from 19% to 16%.
For sole traders and small business owners drawing income in this range, the change translates to a modest additional saving. The broader rate structure above $45,000 remains unchanged: 30% applies between $45,001 and $135,000, 37% between $135,001 and $190,000, and 45% above that.
The practical implication for tax planning is straightforward: if your business has had a strong year, timing strategies that push assessable income into the new financial year will benefit from the lower rate. Speak with your accountant before 30 June about what, if any, deferral options apply to your structure.
Wage Costs: Prepare for Another Increase
The current national minimum wage , $24.95 per hour ($948 per week for a 38-hour week) , has been in place since 1 July 2025, following a 3.5% increase delivered by the Fair Work Commission’s Annual Wage Review.
The Commission’s 2026 review is now underway. Decisions are typically announced in May or June, with changes taking effect from the first full pay period on or after 1 July 2026. While the exact percentage has not yet been confirmed, cost-of-living pressures, energy costs, and ongoing inflation are all factors in the Commission’s deliberations.
For small businesses, the minimum wage headline is only part of the picture. Most employees are covered by a modern award, and award minimum rates increase in line with the national minimum wage decision. This affects penalty rates, allowances, overtime calculations, and casual loadings , all of which compound the labour cost impact.
Beyond the wage review, the Payday Super changes mean that higher wages also translate directly into higher super obligations, paid more frequently. A business paying eight casual staff at minimum wage, fortnightly, will feel this in every single pay run from 1 July.
Practical steps to take now
- Review every award that applies to your workforce , not just the national minimum wage headline rate.
- Update payroll software settings ahead of 1 July so new rates apply correctly from day one.
- Run a test payroll in late June to confirm all new rates, including super at 12%, are calculating correctly.
- Model your full labour cost , wages plus super plus on-costs , at projected new rates. Factor this into your pricing and budget for the second half of 2026.
PAYG Withholding: Reporting Cycle Changes
One change that can slip under the radar: businesses whose total annual PAYG withholding exceeds $25,000 may be moved from quarterly to monthly reporting by the ATO. If this applies to your business, you will receive notification , but it is worth reviewing your current withholding levels now.
Monthly PAYG reporting requires tighter reconciliation and more frequent cash outflows. Ensure your accounting software is configured correctly and that your cash flow forecasts account for the change in timing if it applies to you.
The Bottom Line
The period from now through to 30 June 2026 is one that rewards preparation. Three things sit at the top of the priority list for most small business owners:
One: Use the $20,000 instant asset write-off while the window is open , but plan purchases now to ensure assets are operational before 30 June.
Two: Get Payday Super-ready before 1 July. Transition away from the SBSCH, confirm your payroll software is compliant, and remodel your cash flow around more frequent super obligations.
Three: Anticipate another wage increase from 1 July and model the full cost impact , wages, super, and on-costs , across your workforce before it arrives.
If you would like to work through any of these areas specific to your business, get in touch. This is exactly the kind of planning that makes a material difference to cash flow, compliance, and your bottom line.
A Note on the Upcoming Federal Budget
Everything outlined in this article reflects current law and confirmed policy as of April 2026. However, the Federal Budget for 2026–27 will be handed down by Treasurer Jim Chalmers on 12 May 2026 , and budget announcements can alter the landscape meaningfully, sometimes with immediate effect.
The practical consequence of all this: any planning decisions made between now and 12 May should be made with the awareness that the budget could introduce new measures, amend existing ones, or signal further changes down the track. Some announcements take effect from budget night itself; others apply from 1 July or later. It is worth holding off on any major structural decisions, around super, business sales, or entity restructuring, until the budget details are clear, or at a minimum, seeking advice that accounts for the range of likely outcomes.
We will publish an updated summary for small businesses as soon as the budget is handed down. If you would like to discuss how any anticipated changes may affect your specific situation before then, get in touch.
This article provides general information only and does not constitute financial, tax, or legal advice. Please consult a registered tax agent or financial adviser for guidance tailored to your circumstances.
