What’s changing?
Among the key developments is the introduction of Payday Super from 1 July 2026. Employers are now required to pay an employee’s superannuation to their nominated fund each payday, with payments generally required to reach the fund within seven business days. Employers must also report qualifying earnings and super liabilities through Single Touch Payroll.
The update also covers changes relevant to small businesses, including the availability of the $20,000 instant asset write-off for eligible assets first used or installed ready for use between 1 July 2025 and 30 June 2026. It also notes that general interest charges and shortfall interest charges incurred from the 2025/26 income year are no longer deductible.
Tax, vehicles and superannuation
Other matters covered include the Government’s broader tax reform program, changes to capital gains tax and negative gearing proposed from 1 July 2027, and the introduction of the Working Australians Tax Offset and $1,000 instant deduction for work-related expenses.
For businesses using vehicles, the car depreciation limit for the 2027 income year has increased to $69,883, while updated luxury car tax thresholds also apply.
The ATO is also encouraging taxpayers to check whether they have superannuation money being held by the ATO, which may include unclaimed super, unpaid employer super guarantee amounts and certain government super contributions.
These changes may affect taxpayers differently depending on their individual circumstances. If you are unsure how any of the measures outlined in the July Practice Update may apply to you or your business, please contact Herries Davidson & Co for professional advice.