14/05/2026
After Tuesday nightās Federal Budget, everyoneās talking about negative gearing, CGT and trustsā¦
But there were some major announcements that will directly affect small businesses too.
Letās talk about them š
First ā loss carry-back rules are back.
From 1 July 2026, companies with turnover under $1 billion will be able to use current year tax losses to offset profits from the previous two years and potentially receive a tax refund.
So if your business had strong years and is now slowing down or reinvesting heavily, this could be a big cash flow win.
There are limits though ā it only applies to revenue losses and is capped by your franking account balance.
Second ā the $20,000 instant asset write-off is now permanent.
Small businesses under $10 million turnover can continue immediately deducting assets under $20k instead of depreciating them over several years.
The real change here? Certainty.
Businesses can finally make purchasing decisions without waiting every Federal Budget to see if the rules survive another year.
And finally ā changes are coming to the EV FBT exemption.
At the moment, eligible electric vehicles can qualify for a full Fringe Benefits Tax exemption ā which is why EVs have become so popular through business structures.
But from 1 July 2027, the exemption will begin phasing out for EVs valued above $75,000.
So if an EV purchase is already on your radar, timing and vehicle price could become really important.
Thereās a lot in this Budget that could impact business cash flow, tax planning and investment decisions over the next few years.
If you want help understanding what these changes mean for your business, send me a message.
