Tips on what you should do now

• Set reminders for key commencement dates and deadlines and subscribe to updates from relevant regulators.
• Review your business processes and systems, including payroll, accounting and superannuation, to ensure they reflect current tax, workplace and compliance requirements.
• Check employee classifications, minimum pay rates and entitlements, particularly when an employee’s role, duties or age changes. 
• Review your cash-flow forecasts and provider arrangements to prepare for changes to superannuation, wages and other business costs and obligations. 
• Keep your business details and records up to date, including information held by regulators and evidence of steps taken to meet your obligations. 
• Check whether sector-specific requirements apply to your business, particularly new or changing regulatory obligations. 
• Plan ahead for upcoming changes and business decisions, including available incentives when hiring an apprentice or trainee and tax implications when selling, transferring or restructuring business assets. 
• Stay informed about future reforms and seek advice from your accountant, bookkeeper, lawyer or trusted business adviser if you are unsure how a change may affect your business.

Changes from 1 January 2027

Australian Apprenticeships incentives are changing

From 1 January 2027, changes to the Australian Apprenticeships Incentive System will be more targeted towards small and medium-sized employers and priority occupations. 

Changes include: 

• eligible employers may receive up to $4,000 under the Key Apprenticeship Program Employer Incentive for apprenticeships commencing or recommencing from 1 January 2027 
• the Priority Hiring Incentive will remain at up to $2,500 
• employers with 200 or more employees will generally no longer be eligible, except Group Training Organisations 
• the Australian Apprenticeships Priority List will be updated to better reflect skills shortages and government priorities.

Employers who start or restart an apprenticeship before 1 January 2027 can retain current incentive rates, including up to $5,000 under the Key Apprenticeship Program Employer Incentive.

If you employ, or are considering employing, an apprentice, contact an Apprentice Connect Australia Provider to check eligibility, available incentives and support.

Looking ahead: changes from 1 July 2027

Capital Gains Tax changes

The Australian Government has announced changes to Capital Gains Tax commencing from 1 July 2027.

Under the changes:

• the existing 50% CGT discount will be replaced with a discount based on inflation
• a minimum tax rate of 30% will apply to real capital gains
• the new arrangements will apply prospectively to gains that accrue from 1 July 2027 when they are realised.

Business value accrued before 1 July 2027 will retain access to the existing 50% discount treatment, regardless of when the asset is subsequently sold. 

The 4 existing small-business CGT concessions will remain available to eligible businesses. The aggregated-turnover threshold for the small-business 50% active asset reduction will also increase from $2 million to $10 million from 1 July 2027.

The changes may be relevant if you are considering selling a business, commercial property, goodwill or other CGT assets. Everyday business tools, equipment and trading stock are generally dealt with under other tax rules rather than CGT.

If you are considering selling, transferring or restructuring business assets, speak to your accountant or registered tax adviser about the possible implications before making a decision.

Recent tax and business changes

The instant asset write‑off is now permanent. For small businesses with an aggregated turnover of under $10m per annum, you will be able to  immediately deduct assets under $20,000.  

Cash flow support has expanded, from the 2026-27 financial year, the loss carry back rules  permanently reinstated, with eligible companies able to  offset current losses against profits from the previous 2 years to offset past tax. 

Personal income tax changes have been reduced, with the previous 16% tax rate on taxable income between $18,201 and $45,000 to be 15%. This change impacts employers, employees and sole traders.  

Payroll and superannuation 

Payday Super commenced on 1 July 2026, with it mandatory for super to be paid every payday, not quarterly. Super guarantee is calculated as 12% of an employee’s qualifying earnings, and super payments must be paid to an employees’ super fund on payday and received by the super fund within  7 business days. 

The updated definition of  ‘Qualifying Earnings’ is in effect, where super paid to an employee is calculated on a broader earnings base, bringing together ordinary time earnings, salary sacrifice contributions and other amounts that are currently included in an employee’s salary or wages for super guarantee. 

Mandatory real time reporting via Single Touch Payroll (STP) is in effect, with employers needing to report both the qualifying earnings and super liability every payday through STP.  

The  Super Guarantee remains at 12% but will be applied under new rules.  

Employment and workplace 

The National Minimum Wage and minimum award wages increased from the first full pay period starting on or after 1 July 2026. The decision affects the minimum pay rates under the awards.

The Australian Government funded  Parental Leave Pay scheme is now fully rolled out and was expanded to 26 weeks. It will continue to be paid at the National Minimum Wage and is in addition to any employer-paid parental leave.  

Regulatory/compliance changes 

Tranche 2 of the  Anti-Money Laundering/Counter Terrorism Financing (AML/CTF) obligations came into effect on 1 July 2026. Tranche 2 applies to accountants, legal professions, conveyancers, real estate professions, and dealers in precious metals, stones and products. 

Small businesses working in these sectors require: 

• AUSTRAC registration
• a program of compliance with the AML/CTF reporting 
• customer due diligence to make sure you are complying with obligations. 

The  SMS Sender ID Register is now in effect, which means the way businesses and organisations send branded text messages has changed. Texts sent with an organisation’s name at the top of a message will now have to have the sender ID registered otherwise business messages may be deemed to be ‘unverified’, or a customer might think they are a scam.  

Australian hospitality businesses must label all dishes containing  seafood with country-of-origin information using the AIM system – Australian (A), imported (I) or mixed (M). 

In line with an increase in the Consumer Price Index (CPI) for the March quarter, the Australian Securities and Investment Commission (ASIC) increased business name and company fees. Small businesses and company directors should check current fees when lodging documents, registering or updating company information, or undertaking other transactions with ASIC. 

IP Australia has changed their  patent excess claims reminder notification to a 3‑month reminder period after an examination request is received. 

Businesses operating in affected sectors should review their compliance obligations and seek advice where necessary.

Business advisory services program delivery changes  

The Australian Government’s  Digital Solutions program supports small businesses to adopt digital tools, grow their online presence, enhance cyber security, and thrive in the digital economy. The program has recommenced with a refreshed model. Providers are available across all regions to deliver tailored support to small businesses. 

Where to get help: 

• Department of Employment and Workplace Relations
• business.gov.au
• ATO
• Fair Work Ombudsman
• AUSTRAC
• ASIC
• IP Australia.

You can also speak with your accountant, bookkeeper or trusted business adviser to understand what these changes mean for your business.