If you run an Australian small business, the next twelve months will do more to your cashflow, payroll and compliance than any year since the COVID recovery. Not because of a single big announcement, but because of a stack of changes all landing in the same narrow window.
Payday super starts 1 July 2026. Division 296 super tax starts the same day. The instant asset write-off cliff is 30 June 2026. The federal energy bill rebate ended 31 December 2025. Right to disconnect has already applied to small business since 26 August 2025. And the May 2026 federal budget is three weeks away.
This is a practical guide to what's actually landing, where the political parties sit, and what you should be doing about it. It's organised by policy area rather than by party, because most business owners care more about whether their BAS gets harder than which colour tie is in front of the microphone.
Labor won the May 2025 federal election in a landslide, securing 94 seats in the House of Representatives, the largest single-party result in Australian history. That means the Albanese government has a clear mandate to push its agenda and doesn't need to negotiate much on House bills. The Senate is a different story: Labor needs the Greens for anything the Coalition opposes, which is how the Division 296 super tax got across the line in late 2025. The Coalition is now led by Angus Taylor, who replaced Sussan Ley in a February 2026 leadership spill. Taylor is pushing a deregulation and permanent tax-breaks line. The Greens retain leverage in the Senate and are pushing harder on worker protections and wealth taxes. The teal independents continue to lobby on industrial relations thresholds for small business.
That's the context. Now here's what actually matters for your business.
This is the area with the biggest dollar impact for most SMEs over the next twelve months.
The $20,000 instant asset write-off (IAWO) was extended for the 2025-26 financial year through the Treasury Laws Amendment (Strengthening Financial Systems and Other Measures) Act 2025, which passed in November 2025. Eligible small businesses (aggregated turnover under $10 million) can deduct the full cost of eligible depreciating assets costing less than $20,000, provided they're first used or installed ready for use by 30 June 2026.
From 1 July 2026, the threshold reverts to $1,000 unless new legislation passes. The Parliamentary Budget Office's costings treat the baseline as a $1,000 cap from 2026-27 onwards.
Where the parties sit:
Labor has a pattern of extending IAWO year-by-year in the budget. The 2025-26 extension was announced in April 2025 as an election commitment, not in the preceding budget, and was legislated late in 2025. Whether it gets extended again for 2026-27 is likely to be a May 2026 budget question.
The Coalition (under Taylor, previously under Ley and Dutton) has consistently argued for a permanent $30,000 threshold. Angus Taylor, when he was Shadow Treasurer, made this a flagship position. CPA Australia, CA ANZ and COSBOA have all called for permanency rather than annual extensions.
The Greens have supported the $20,000 extension and the small business energy incentive scheme.
What to do: If you're planning capital expenditure and the kit will be under $20,000 per asset, get it installed and operational by 30 June 2026. Not just ordered, not just delivered, actually installed and ready for use. If you're planning assets above $20,000 and below $30,000, and you think the Coalition's permanent $30,000 cap might eventually get through, there's a planning argument for either bringing it forward (to use the current $20,000 IAWO where you can split items) or deferring, but don't bet the business on a political promise from opposition.
This is the big one for business owners with self-managed super funds holding commercial property or business equity.
The Division 296 legislation passed Parliament in December 2025 with Greens support. It takes effect from 1 July 2026, with the first assessments applying to the 2026-27 financial year (so the first bills land after 30 June 2027).
What it does:
Where the parties sit:
Labor and the Greens passed this together. Labor wanted the unrealised gains mechanism and the $3m threshold unindexed; the final version dropped both in favour of the two-tier indexed model. The Greens see this as step one towards broader wealth tax reform. The Coalition opposed the original version and opposes this one, arguing it hits business owners who've used super to hold business premises.
What to do: If your SMSF holds commercial property (including your own business premises) or other illiquid assets, and your total super balance is anywhere near $3 million, this needs to be modelled now. Valuations at 30 June 2026 matter. The cost-base reset election is one-shot and irrevocable. This is not a DIY job.
Payday super was legislated in November 2025 (Treasury Laws Amendment (Payday Superannuation) Act 2025 and Superannuation Guarantee Charge Amendment Act 2025), with regulations released in February 2026. It starts 1 July 2026.
From that date, employers must pay superannuation contributions at the same time they pay salary and wages, with funds received by the employee's super fund within 7 business days of payday. The current 28-day post-quarter window is gone.
Other changes landing at the same time:
Where the parties sit:
Labor is the proponent and has legislated it. The Greens support it as worker protection. The Coalition has not committed to reversing it but has flagged concerns about small business readiness and administrative burden.
What to do: This is the change most likely to catch unprepared businesses off-guard. If you're using SBSCH, move now. Talk to your payroll software provider about Payday Super readiness. Stress-test your cashflow: paying super weekly or fortnightly rather than quarterly is a real working capital shift, especially if you've been relying on the quarter-end float. Review your contractor arrangements, because the extended employee definition can catch people you thought were contractors.
Most of the big Closing Loopholes reforms are now fully in force. The debate has shifted from what the rules are to whether they get rolled back or extended.
From 26 August 2025, right to disconnect laws apply to small business employers (fewer than 15 employees) under the Fair Work Act. Employees can refuse to monitor, read or respond to work contact outside their working hours, unless the refusal is unreasonable.
The Fair Work Ombudsman lists a set of factors that go into the "unreasonable" test: reason for contact, disruption caused, compensation for being available, role level and responsibilities, and personal circumstances. All 155 modern awards now contain a right-to-disconnect term.
Where the parties sit:
The Coalition pledged to repeal the right to disconnect if elected in May 2025. They lost. Whether Taylor's Coalition maintains that position into the next election is unclear but likely. Labor considers it settled law. The Greens want it strengthened.
What to do: Review your after-hours contact practices now. The point isn't to never call staff after hours, it's to have a defensible position when you do. Document which roles are expected to be available outside hours, why, and what compensation or arrangements reflect that expectation. Employment contracts and position descriptions should reflect it.
Also from 26 August 2025 for small business employers, eligible casuals can issue a written notice requesting conversion to full-time or part-time employment under the employee choice pathway. Specific rules apply to both notice and response. Employers need a process.
The Fair Work Act's "small business" definition is 15 employees. A group of teal independents (Allegra Spender, Kate Chaney, Zali Steggall, Helen Haines, Monique Ryan, Sophie Scamps, Zoe Daniel) has pushed to lift this threshold, which would exempt roughly 46,000 more businesses from parts of the regulatory framework. Labor's IR Minister Murray Watt ruled it out before the 2025 election. The ACTU opposed it. The Coalition hasn't taken a firm position. This is worth watching in the 2026-27 parliamentary year.
Criminalisation of wage theft came into effect 1 January 2025. Underpayment that's intentional (not just accidental) is now a criminal offence with penalties including imprisonment. Late super payments fall within the scope.
What this means: If you employ between 15 and 50 staff, you're in the no-man's-land where most IR protections apply fully and the small business carve-outs don't. Watch the threshold debate closely. Separately, get your payroll compliance audited. The combination of criminalised wage theft, payday super's transparency, and the Fair Work Ombudsman's increasing enforcement focus means errors that were previously embarrassing are now potentially prosecutable.
The Energy Bill Relief Fund ended 31 December 2025. Eligible small businesses had been receiving up to $150 across two $75 quarterly instalments in the second half of 2025. There is no universal federal replacement. State-based concession schemes continue for eligible customers.
The ABS reported electricity prices rose 37% out-of-pocket in the year to February 2026, primarily because the rebate came off. Underlying price growth was 4.9%.
Where the parties sit:
Labor has not announced a replacement rebate. Chalmers has said the rebate was always temporary. The Coalition criticised the rebates as masking "broken fundamentals" and has historically argued for a supply-side focus, though the specific nuclear policy from the 2025 campaign has gone quiet under Taylor. The Greens want renewables, storage and transmission acceleration.
What to do: Assume higher power bills in 2026 and budget for them. If your retail electricity contract is rolling over or has been on the same plan for more than a year, get it compared. Energy Made Easy (NSW, QLD, SA, ACT, Tasmania) and Victorian Energy Compare are free government tools. The ACCC reported in late 2025 that customers on plans more than three years old pay an average $221 a year more than those on newer plans.
The ATO now runs data matching across bank feeds, payroll systems, Single Touch Payroll, merchant facilities and super fund reports. Payday super adds another real-time stream from 1 July 2026. Accuracy in recordkeeping isn't optional anymore, it's a baseline assumption.
Insolvencies hit record highs through 2024-25. The ATO has continued an active DPN program throughout 2025 and into 2026. If you're carrying GST, PAYG withholding or SGC debts, these can become personal director liabilities through a DPN if not lodged on time. The 21-day window from issue to action is unforgiving.
Where the parties sit:
Labor backs the ATO's tougher enforcement posture. The Coalition has historically positioned itself as more red-tape-conscious but has not opposed the substance of ATO enforcement. The Greens focus on multinational avoidance rather than SME compliance.
What to do: Lodge on time, even if you can't pay. Lodgement is what puts a DPN on the "non-lockdown" side, which means you can still avoid personal liability by entering a payment plan or appointing an administrator. Non-lodgement is what triggers lockdown DPNs where your only escape is to pay. This is the single most important behaviour for a financially stressed SME.
The second Tuesday of May 2026 is 12 May. Budget week. Based on current signals, expect discussion on:
The Coalition's budget-in-reply under Taylor will likely double down on permanent IAWO at $30,000, deregulation themes, and rollback commitments on selected IR reforms.
Does Division 296 affect my business premises if I hold them in an SMSF?
Potentially yes. The test is your total super balance, not the asset itself. If your TSB is over $3 million on the relevant assessment date, the earnings attributable to the portion above $3 million (including rent and any realised gains on the property) will attract the additional tax. Consider whether to opt in to the cost base reset for assets held at 30 June 2026.
When does payday super actually start for my business?
1 July 2026. You need to be paying super on payday (not quarterly) from the first pay run that falls on or after that date.
Can I still use the SBSCH for payday super?
No. The SBSCH closes 30 June 2026. If you're a current user, you need to have transitioned to an alternative clearing house or payroll-integrated solution before then.
If I'm under 15 employees, do right to disconnect rules apply to me?
Yes, from 26 August 2025.
Is the instant asset write-off extended beyond 30 June 2026?
Not yet. As of April 2026 the legislated threshold from 1 July 2026 reverts to $1,000. Any extension would need to be announced (likely in the May 2026 budget) and then legislated.
Does the Coalition's $30,000 permanent IAWO apply now?
No. It's an opposition policy. The current law is $20,000 until 30 June 2026, then $1,000.
What happens if I pay super late after 1 July 2026?
The Superannuation Guarantee Charge applies. This includes the shortfall, nominal interest, an administrative uplift, and potentially penalties up to 200% of the SGC. Late-payment offsets that used to reduce the SGC are being removed. The ATO's PCG 2026/1 gives a limited grace period for low-risk employers in the first year, but this expires 30 June 2027.
Is the right to disconnect a ban on after-hours contact?
No. Employers can still contact employees after hours. The right is the employee's ability to refuse to engage with that contact, unless the refusal is unreasonable. The practical effect is that employers need a considered position on when and why they contact staff outside working hours.
Is there anything the Coalition or Greens could do from opposition that affects me before the next election?
Limited. The Coalition can't legislate from opposition, though they can block Senate bills by voting with the crossbench. The Greens hold Senate leverage for any bill Labor needs their support on, which mainly means tax and climate. Neither party can unilaterally change current law.
When's the next federal election?
By law, the next federal election must be held by May 2028. Labor won a three-year term in May 2025, so a 2028 election is the baseline expectation unless something unusual happens.
The political landscape will keep shifting, but the regulatory deadlines are fixed and immediate. Payday super and Division 296 on 1 July 2026. The IAWO cliff on 30 June 2026. All three of these will affect the cashflow, compliance and super strategy of most growing SMEs in Australia.
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We review and check this guide periodically. At the time of writing (April 2026), all information was current. Scale Suite is a registered BAS Agent (26298194), not a licensed tax advisor or financial advisor. This content is general information only and does not constitute professional tax, financial, or legal advice. Political positions, legislation and regulatory deadlines referenced in this article may change, particularly following the May 2026 federal budget. Do your own research and speak with a qualified advisor about your specific circumstances before acting on anything discussed here.
Scale Suite is a Sydney-based provider of outsourced finance and HR services for Australian SMEs. We deliver bookkeeping, financial reporting, payroll processing, fractional CFO support, recruitment, employee onboarding, people and culture support, and fractional HR oversight, all as a fully embedded team that works inside your business.
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