Tax updates for 2026

1. Depreciating assets

The $20,000 instant asset write-off has been extended for the 2025-2026 tax year. 

If you purchased any assets up to the value of $20,000 this year, and your business has a turnover of less than $10 million, you may be eligible to claim this immediately as a tax deduction by utilising the instant asset write-off.

The $20,000 threshold will apply on a per (eligible) asset basis, allowing sole traders to instantly write off multiple (eligible) assets.

To check if you can claim this deduction, it’s best to speak to an accountant.

They’ll need to know details like:

• The date you bought the asset

• The amount paid

• GST withheld

• The % used for business

They’ll also need a purchase invoice or receipt.

Pro-Tip: If you’re using Rounded, you can label any assets that may qualify for instant write-off under “Equipment” within your P&L Statement. 

2. Changes to superannuation

If you’re entitled to super contributions from clients, the Superannuation Guarantee rate has increased to 12% (from 11.5%). This should be paid on top of your agreed fee.

If you don’t receive super, this new rate serves as a benchmark for the voluntary contributions you should be making to your fund.

Payday Super regulations will also be coming into effect as of July 1st 2026.

From this date, if you’re entitled to super contributions from clients, they must be paid at the same time as the rest of your agreed fee.

Increased contribution limits

From July 1st, 2026, contribution limits will also see an increase:

• Concessional (before tax): $30,000 → $32,500

• Non-concessional (after tax): $120,000 → $130,000

3. Changes to HECS/HELP 

The government applied a one-off 20% reduction to all HECS/HELP debts that existed on June 1st 2025.

This was done throughout 2025 and early 2026, so it’s best to check your updated balance via myGov before estimating your final tax position. 

If you currently have HECS / HELP debt, you’ll now only need to start making repayments once your income exceeds $67,000 (up from $54,000). Repayments are now also calculated only on the income above that threshold, not your full income.

Pay tax in instalments?

The changes to compulsory repayments won’t apply to you for the 2025-2026 Financial Year.

Any extra tax you pay as a result will be credited back to you in your 2026 tax assessment, provided you have no other outstanding debts.

Based on this, you may want to speak to your accountant to decide if you should voluntarily decrease PAYG instalments to avoid overpaying throughout the year and waiting for a refund.

Find out more.