The 2025 Federal Budget brought a number of changes relevant to small and medium business owners across Australia. Here’s what you need to know — in plain English — and what steps you should be taking right now.
The instant asset write-off extension
The government has extended the $20,000 instant asset write-off threshold for another year. This is particularly valuable for businesses looking to invest in new equipment, software, or vehicles before 30 June.
The write-off applies per asset so multiple purchases under $20,000 each can all qualify in the same year. If you’re considering capital expenditure, this should factor into your timing decision.
Changes to the Stage 3 tax cuts
The revised Stage 3 tax cuts have taken effect, providing meaningful relief for middle-income earners. For business owners who draw a salary from their company or trust, this changes your personal tax calculations for the current year.
“Strategic tax planning that minimises your liability and maximises your position year-round, not just at tax time.”
Superannuation changes from 1 July 2025
The superannuation guarantee rate increases to 11.5% from 1 July 2025. If you have employees, your payroll costs will increase accordingly. Now is the time to review your employment contracts, pricing structures, and cash flow forecasts.
What you should do now
- Review planned capital expenditure before 30 June to take advantage of the instant asset write-off.
- Recalculate your personal tax position using the revised Stage 3 rates.
- Update payroll systems and cash flow projections for the super guarantee increase from 1 July.
- Check whether your business qualifies for the small business energy incentive deductions.
If you’re unsure how any of these changes affect your specific situation, speak with an advisor before 30 June not after.
