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Instant Asset Write-Off & Super Guarantee Changes 2026-27: A Brisbane Business Accountant’s Tax Planning Checklist

Instant Asset Write-Off & Super Guarantee Changes 2026-27: A Brisbane Business Accountant’s Tax Planning Checklist

Every year seems to bring a fresh round of “what’s changed” for small business owners, and 2026-27 is no exception. Two changes in particular are generating the most questions from our Brisbane clients right now: the instant asset write-off, and the superannuation guarantee rate.
The confusing part isn’t the numbers themselves – it’s knowing what’s actually confirmed law versus what’s been announced but not yet passed. This checklist walks through both, in plain language, so you can plan with confidence rather than guesswork. If payroll and super calculations aren’t your strong suit, our Payroll service handles this day to day so these rate changes never catch you out.

Superannuation Guarantee: This One Is Settled

Let’s start with the simpler one. The Superannuation Guarantee (SG) – the minimum percentage of an employee’s ordinary time earnings that employers must contribute to super – reached 12% from 1 July 2025, up from 11.5% the year before. This was the final step in a long, staged increase that began years earlier, and there are no further scheduled increases beyond this rate at present.
What this means for your business right now:
  • If you’re running payroll, confirm your software (Xero, MYOB, or whichever platform you use) is calculating super at the correct 12% rate – this should already be reflected if your software has been kept up to date, but it’s worth a quick check, particularly if you manually calculate any pay runs.
  • Factor the 12% rate into any wage cost forecasting or budgeting you do for new hires. A role you cost a year or two ago at an older SG rate will now cost slightly more in total employment cost.
  • Remember that SG must be paid on time – missed or late super payments can trigger the Superannuation Guarantee Charge, which is not tax-deductible and includes interest and administration fees on top of the shortfall itself.
Because this rate change is settled and unlikely to move again in the near term, it’s really a compliance and budgeting item rather than something requiring a wait-and-see approach.

Instant Asset Write-Off: Confirmed for Now, Watch This Space

This is the one causing more genuine uncertainty, so it’s worth being precise about what’s actually law versus what’s been announced.
What’s confirmed: for assets first used or installed ready for use up to 30 June 2026, eligible small businesses (aggregated annual turnover under $10 million) could immediately deduct the full cost of assets under $20,000 each, rather than depreciating them gradually over their effective life.
What’s been announced but is not yet law: in the 2026-27 Federal Budget, the Government announced it would make the $20,000 threshold permanent from 1 July 2026 onward, removing the annual uncertainty businesses have dealt with for years. However, as of this article’s publication, the enabling legislation had not yet passed Parliament. Until it does, the standing legislated default threshold reverts to a much lower $1,000 for assets first used from 1 July 2026.
What this means practically:
  • If you’re planning a business asset purchase in 2026-27 – a vehicle, tools, equipment, technology – check the current legislative status with your accountant or the ATO before assuming the $20,000 threshold definitely applies, rather than relying on headlines or last year’s rules.
  • Given the strong bipartisan support this measure has received, the permanent extension passing is considered likely by most tax professionals – but “likely” isn’t the same as “confirmed,” and tax planning should be based on what’s actually law at the time of purchase.
  • The instant asset write-off applies on a per-asset basis, not a combined total – so multiple eligible purchases can each be written off individually, provided each one is under the threshold.
  • The asset must be first used, or installed ready for use, within the relevant income year – simply ordering or paying for it isn’t enough to claim the deduction in that year.

A Simple Pre-Purchase Checklist

Before making a significant asset purchase this financial year, it’s worth running through:
  1. Confirm your business is eligible – aggregated turnover under $10 million and using simplified depreciation rules. 
  2. Check the current legislated threshold with your accountant, rather than assuming $20,000 automatically applies. 
  3. Confirm the asset cost is under the threshold on a GST-exclusive basis if you’re GST-registered. 
  4. Plan the timing so the asset is actually in use, not just ordered, before the relevant cut-off date. 
  5. Keep proper records – a valid tax invoice and documentation of business-use percentage, particularly for assets with any private use component. 
  6. Consider cash flow, not just tax savings – a large asset purchase reduces your tax bill, but the cash still has to leave the business, so it’s worth weighing this against your broader cash flow position before committing.

Why This Matters Beyond Just "Saving Tax"

It’s easy to treat both of these changes as isolated compliance items, but they connect to bigger decisions: how you price your services to cover true employment costs, how you time equipment upgrades, and how you plan cash flow around tax-deductible purchases. Getting the detail right on changes like these is a small but genuine part of the broader picture of structuring your business well and planning proactively rather than reactively.

How WOW! Advisors Can Help

Because the instant asset write-off legislation is still moving, and payroll settings need to reflect current rates accurately, this is exactly the kind of detail we review with clients as part of our ongoing relationship – not just once a year at tax time. Our Corporate Tax Planning and Payroll services are built to keep you compliant and make sure you’re not missing (or misusing) concessions like these.

FAQ

The SG rate is 12%, effective from 1 July 2025. This was the final scheduled increase in a long-running staged rise, and there are no further increases currently legislated.

It was announced as a permanent measure from 1 July 2026 in the 2026-27 Federal Budget, but as of publication, the enabling legislation had not yet passed Parliament. Until it does, the standing legislated default is $1,000. Confirm current status with your accountant before relying on the higher figure for a purchase decision.

Yes, both new and second-hand assets can qualify, provided they meet the cost threshold and are used for income-producing purposes in the business.

The asset generally needs to be first used, or installed ready for use, within the relevant income year to qualify for that year’s write-off. An asset still in transit or on order at the cut-off date typically doesn’t meet this test.

In many cases, yes – if a contractor is engaged wholly or principally for their labour, superannuation guarantee obligations can still apply, regardless of how the arrangement is described. This is a commonly misunderstood area worth checking with your accountant.

Late or missed super payments can trigger the Superannuation Guarantee Charge, which includes the shortfall amount, interest, and an administration fee – and unlike normal super contributions, this charge is not tax-deductible.

Yes, vehicles used for business purposes can qualify, subject to the cost threshold and any relevant car cost limits that apply separately under tax law. It’s worth checking both rules together, as they can interact.

The SG rate has changed periodically over recent years as part of a legislated staged increase, now complete at 12%. The instant asset write-off threshold, historically, has changed almost every year – which is exactly why the proposed move to a permanent $20,000 threshold has been welcomed by many small business groups.

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