Tax Alert – June 2026

Recent updates from the ATO highlight a mix of proposed tax changes and compliance priorities. New draft legislation is currently under consideration, alongside practical guidance released ahead of the Payday Super changes commencing 1 July 2026.

Check eligibility for tech booster deduction

Small businesses are being encouraged to review their eligibility for the Government’s proposed Technology Investment Boost, although the legislation is yet to be passed.

Under the original proposal, eligible businesses could claim a bonus tax deduction of up to $2,000 for technology spending. This applies to investments exceeding $4,000 in areas such as digital systems, e-commerce platforms, cybersecurity, and online marketing tools.

Businesses with annual turnover of up to $10 million may qualify, with eligible expenditure incurred between 1 July 2025 and 30 June 2027.

While not yet law, reviewing planned or recent technology spending now may help businesses act quickly if the measure is enacted.

Standard $1,000 deduction proposal

Another proposed measure is the introduction of a standard $1,000 deduction for work-related expenses, with draft legislation currently released for consultation.

If implemented from 1 July 2026, the deduction would be available to taxpayers earning employment income for the 2027 tax year. Taxpayers with work-related expenses below $1,000 could claim the standard deduction without the need to retain detailed receipts.

Importantly, existing rules will remain available for those with higher expenses, or for individuals earning only business or investment income. If claiming higher expenses, all receipts will be required to substantiate those claims.

The proposed deduction would sit alongside other claims, meaning taxpayers could still separately deduct investment expenses, charitable donations, and union or professional association fees.

Preparing for Payday Super

With Payday Super set to commence on 1 July 2026, the ATO has released checklists and guidance to help employers prepare.

The new regime will require super contributions to be paid at the same time as wages, rather than quarterly. To support the transition, the ATO has published resources covering:

Key pre-implementation tasks

• Managing pay runs across the June–July transition period
• Single Touch Payroll reporting requirements
• Ongoing compliance under the new system

Employers are encouraged to review payroll systems, processes, and cash flow implications now to ensure a smooth transition.

GST reporting thresholds in focus

The ATO is also reminding growing businesses to review their GST reporting obligations as turnover increases.

Businesses that reach $10 million in GST turnover must move from Simpler BAS to full BAS reporting and adopt a non-cash (accrual) accounting method for GST.

Once turnover reaches $20 million, GST reporting must shift from quarterly to monthly lodgements.

The ATO has indicated it has observed some businesses failing to update their reporting methods after crossing these thresholds and will contact affected businesses directly.

Fuel tax credit rate changes

Taxpayers claiming fuel tax credits should ensure they are applying the correct rates following changes from 1 April 2026, when fuel excise was temporarily reduced by 60.9 per cent.

As fuel tax credits are based on the excise duty payable on fuel, different rates apply before and after that date.

In addition, the heavy vehicle road user charge has been reduced to zero for the period 1 April to 30 June 2026.

Digital lodgement for partnerships

The ATO continues to expand digital reporting requirements, with all partnerships now required to lodge Statements of Distribution (SODs) electronically.

This applies regardless of the size of the partnership. Lodgement can be completed through Standard Business Reporting-enabled software or via a registered tax agent.

This digital reporting enables the ATO to cross-check that partners are accurately reporting their share of income in their individual tax returns.

Strengthening business security

Finally, the ATO is encouraging businesses to review access to their online accounts as part of good governance and fraud prevention.

Business owners should:

• Regularly review authorised users in the Relationship Authorisation Manager
• Remove access for staff who have left or changed roles
• Check permissions for sensitive functions within ATO Online Services for Business and the Australian Business Register

Keeping access controls up to date is a simple but effective way to reduce the risk of unauthorised activity.

Need help navigating these changes?

With several proposed reforms and compliance updates on the horizon, now is the perfect time to ensure your business is prepared. Get in touch with our accounting team today to review your position, identify opportunities, and stay ahead of upcoming ATO requirements.

Source

www.ato.gov.au