The FY26 tax settings for small business are, on balance, favourable. Three specific moves are worth making before 30 June, and one worth planning for the following year.

Move one: instant asset write-off

The instant asset write-off threshold for eligible small businesses has been held at $20,000 per asset for FY26. The threshold applies per asset, not per business. If you have equipment purchases planned, the timing of purchase within the financial year matters.

Move two: superannuation contributions

The concessional contribution cap has increased. If you have carried forward unused cap space from previous years, FY26 is a strong year to use it. The tax deduction on employer super contributions applies at your business tax rate.

Move three: bad debt write-off

Bad debts that will not be recovered should be written off before 30 June to secure the deduction in this financial year. Documentation matters here. Your accountant can advise on the specific test.

For next year

The government's planned reforms to the small business tax framework, expected in the May 2026 budget, are worth watching. Some, though not all, are likely to be favourable.