Small business tax deductions you can (and can’t) claim in 2026
Metadata
| Field | Value |
|---|---|
| Title | Small business tax deductions you can (and can’t) claim in 2026 |
| Author | Francesco Solfrini (Chartered Accountant James Scott, Director at JD Scott + Co, 자문) |
| Site | Prospa |
| Published | 2026-05-20 |
| Words | ~1800 |
| Language | en |
| URL | https://www.prospa.com/blog/small-business-tax-deductions-australia |
한국어 요약 (Korean Summary)
소스 간 교차 확인 필요: 이 글(2026-05-20 작성, Prospa)은 “2026년 5월 예산에서 20,000 즉시상각 문턱이 영구 확정됐다(now permanent)"고 명시하는 반면, 같은 세트로 클리핑한 **Scale Suite 소스**(2026-07 작성)는 "2026-07 기준 관련 법안이 아직 의회 통과 전이라 임시로 1,000 문턱이 기술적으로 적용 중”이라고 서술 — 두 소스가 시점(5월 vs 7월)과 “확정 여부” 판단에서 서로 다른 진술을 하고 있어, /ingest 시 실제 법제화 진행 상황을 ATO 공식 소스로 재확인하고 두 소스 중 어느 쪽이 최신/정확한지 disputed 처리 검토 필요.
2025-26 회계연도 주요 변경사항: 20,000 즉시상각 영구화(위 논란 참고), 2026-07-01부터 Payday Super 시행(급여 지급 시 동시 슈퍼 납부 의무화), 2026-07-01부터 회계사·변호사·부동산업자 대상 신규 AML 의무. **손실 이월공제(Loss carry back) 예시**가 구체적: 65,000 장비(개별 20,000 미만씩 분할 구매)로 즉시상각 시 15,000 손실 발생 → 과거 2년치 납부세액에 소급 상계해 $3,750 환급, 최대 8만 5천개 기업(대부분 소기업) 수혜 예상. 소기업 공제 가능 항목 6개 카테고리(운영비, 출장/차량, 장비/기술, 전문성 개발, 보험/퇴직연금, 홈오피스) 상세 정리. 2026-07-01부터 ATO 일반이자가산금(GIC) 세금공제 불가 전환도 언급.
Original Content
Small business tax deductions you can (and can’t) claim in 2026
At a glance
- A handful of changes take effect from 1 July 2026, including Payday Super and the $20,000 instant asset write-off being made permanent. Acting before 30 June could make a real difference to your tax position.
- Small businesses can reduce their taxable income by maximising deductions across operating costs, travel, equipment, training, insurance and super.
- Not every business expense is deductible. Client entertainment, personal portions of shared costs like internet or phone, and training for a new career fall outside what the ATO allows, and getting it wrong can trigger a review.
What’s changed for 2025-26
**The 20,000 instant asset write-off is now permanent.** After three years of last-minute extensions, the May 2026 budget confirmed the 20,000 threshold is here to stay. That means you can plan purchases with certainty. But to claim the deduction in this financial year, assets still need to be first used or installed ready for use before 30 June 2026.
Payday Super starts 1 July 2026. Currently, employers must pay super quarterly. From 1 July, super must be paid at the same time as wages.
New AML obligations may change how your advisors work with you. From 1 July 2026, accountants, lawyers and real estate agents come under new anti-money laundering laws.
Loss carry back returns. From 2026-27, eligible companies that make a tax loss can carry it back against tax paid in the prior two years and receive a refund. The budget gave a practical example: a small restaurant that purchases 65,000 in equipment (each piece under 20,000) can use the instant asset write-off to create a 15,000 loss, then carry that loss back for a 3,750 refund. Up to 85,000 companies, mostly small businesses, are expected to benefit.
What small businesses can claim on tax in 2026
The expense must be: directly related to earning your income, only for business use (or split between business and personal use), properly documented with receipts or records.
1. Operating expenses: rent or lease payments for business premises, utilities like electricity, gas, internet and phone, staff wages and super, professional services, office supplies and subscriptions. Client entertainment and social events are generally not deductible, even if work-related.
2. Work-related travel and vehicle costs: flights, accommodation and meals for business travel, car fuel, servicing, registration and depreciation, tolls and parking. Clear records and written evidence needed; logbook or odometer readings for vehicles.
3. Equipment and technology: The 20,000 write-off threshold applies per asset, so you can claim multiple purchases provided each costs less than 20,000 and is used or installed ready for use before 30 June 2026. Mixed-use items like phones or computers should be split based on business use.
4. Professional development: relevant courses, certifications or workshops, online learning platforms, conferences related to your industry. Cannot claim training that prepares you for a new job or a different business field.
5. Insurance and superannuation: business insurance (like public liability or professional indemnity) and super contributions made on time for employees. Super contributions must be received by the fund before 30 June 2026, not just paid. The Super Guarantee rate for 2025-26 is 12% of ordinary time earnings.
6. Home office and home-based business deductions: Occupancy expenses (rent/mortgage interest, council rates, home insurance) for businesses with a dedicated work area; Running expenses (electricity, gas, internet, phone, office supplies, cleaning, depreciation) for businesses with or without a dedicated work area. Actual cost method (detailed records + floor plan) or fixed rate method (70 cents per hour for running costs). Occupancy costs may trigger a Capital Gains Tax (CGT) event when you sell your home.
A note on General Interest Charges
From 1 July 2025, businesses can no longer claim a deduction for General Interest Charges (GIC) applied by the ATO. “This change increases the real cost of late payments. The effective interest rate will feel a lot higher when you can’t deduct it,” says Scott.
Key tax deadlines for the 2025-26 financial year
- 30 June 2026 – End of the 2025-26 financial year and the last date to claim the $20,000 instant asset write-off for this financial year
- 31 October 2026 – Tax return deadline if you’re self-lodging
- 15 May 2027 – Extended deadline if using a registered tax agent
FAQs
What records should I keep to support my small business tax deductions? Detailed records such as receipts, invoices, bank statements, logbooks (for vehicle use), and summaries from accounting software. Records must be kept for at least five years.
Can I still claim deductions if I haven’t made a profit? Yes, though sole traders/partnerships may face non-commercial loss rules.
What is Payday Super and how will it affect my business? From 1 July 2026, employers must pay super at the same time as wages, rather than quarterly.
Disclaimer: The information in this post is provided for general information only and does not take into account your personal situation. © 2026 Prospa Advance Pty Limited, ABN 47 154 775 667.