What changed for small businesses from 1 July 2026

Published Saturday 26 September 2026

Table of contents

• What changed for small businesses on 1 July 2026?
• Payday super: Paying super with every pay run
• Minimum and award wages rose 4.75%
• Personal income tax cuts for 2026-27
• The $20,000 instant asset write-off is now permanent
• Company tax and loss carry back
• Business name and company fee increases
• Other compliance changes to know
• How to check you're set up for the changes
• Stay on top of payroll and super changes with Xero
• FAQs on business changes from 1 July 2026

Key takeaways

• Since 1 July 2026, you pay super on each pay run, and it must reach your employees' funds within seven days of payday.
• The national minimum wage rose 4.75% to $26.44 an hour ($1,005 a week), and award wages rose by the same amount.
• A personal income tax cut lowered the 16% rate to 15% for income between $18,201 and $45,000, worth about $268 a year for many taxpayers.
• The $20,000 instant asset write-off is now permanent for businesses with turnover under $10 million.

What changed for small businesses on 1 July 2026?

The business changes that started on 1 July 2026 affect how you pay staff, what you pay in tax, the fees you face, and a handful of new compliance rules. That date was the start of the 2026 – 27 financial year, and some of these changes needed action before your first pay run of the year.

To make it easier to check where you stand, the updates fall into four groups:

• payroll: payday super and higher minimum and award wages
• tax: a personal income tax cut and a permanent instant asset write-off
• fees: higher business name and company registration costs
• compliance: seafood labelling, SMS sender registration, and longer parental leave pay

The sections below walk through each change, what it means for you, and what to check now.

Payday super: Paying super with every pay run

Since 1 July 2026, you must pay super on each pay run rather than once a quarter. Your employees' super contributions also have to reach their fund within seven days of payday.

This is one of the bigger shifts for employers, and it applies to all employers, not just larger ones. According to the Australian Government's business resource, the change lines up super payments with wages so money lands in employees' accounts sooner.

Payday super does more than move the deadline. It doesn't simply replace quarterly payments with the same amounts paid more often; it changes the whole rhythm of how and when you send super. If a payment is late, you can trigger the super guarantee charge, which adds interest and an administration fee on top of what you owe.

There's another part of the change to account for. The Small Business Superannuation Clearing House closed permanently on 1 July 2026, so if you relied on it to distribute super, you now need another way to send payments.

The cash flow effect is worth watching closely. According to Xero Small Business Insights, Australian small business wages grew 2.7% year on year, so paying super more often sits on top of a rising wage bill. Many small businesses used to hold super aside between quarterly deadlines, and moving to per-run payments changes when that cash leaves the business.

To stay on top of it, review your payroll timing and check that your systems can send super on each run within the seven-day window. It also helps to map out your cash flow so more frequent super payments don't catch you short.

Minimum and award wages rose 4.75%

If you employ staff, your wage costs have gone up. The national minimum wage rose 4.75%, and award minimum wages rose by the same amount.

From the first full pay period on or after 1 July 2026, the national minimum wage is $26.44 an hour, or $1,005 a week. The timing matters here: the rise applied from your first full pay period on or after 1 July, not necessarily on the date itself.

To stay compliant, make sure your pay rates are updated and check the awards that cover your team. The Fair Work Commission sets these rates each year, so confirm the ones that apply to your business.

Personal income tax cuts for 2026-27

Personal income tax has come down, which affects both you and the take-home pay of any staff you employ. The change lowered one tax rate for a common income band.

From 1 July 2026, the 16% rate on income between $18,201 and $45,000 dropped to 15%. It falls again to 14% from 1 July 2027. According to the Australian Taxation Office, the cut is worth about $268 a year for many taxpayers in 2026-27.

For you as an owner, that's a small lift in take-home pay across the income band. For your employees, it can mean a slightly larger net pay packet, which is useful context when you talk to your team about wages.

The rate cut is automatic through the tax system, so there's nothing you need to lodge to claim it. If you draw a wage from your business or run staff through payroll, the new rate applies from the 2026-27 year onward.

The $20,000 instant asset write-off is now permanent

The $20,000 instant asset write-off is now a permanent feature rather than a year-by-year measure. That gives you more certainty when you plan equipment purchases.

Since 1 July 2026, small businesses with aggregated turnover under $10 million can immediately deduct the full cost of eligible assets under $20,000. The threshold applies on a per-asset basis, so you can write off several qualifying assets in the same year.

To make the most of it, plan your purchases around what your business actually needs and check each asset's cost against the $20,000 limit. You can read the eligibility detail in the Australian Government's Backing small business factsheet.

Company tax and loss carry back

If your business runs as a company, two settings stayed steady and give you a bit of breathing room. The base rate company tax rate held where it was, and a loss measure continues.

The base rate company tax rate stays at 25%, so eligible companies keep the same rate as the previous year. Loss carry back also continues, letting eligible companies offset current losses against tax paid in the previous two income years. That can turn a tough year into a refund of earlier tax rather than a loss you carry forward alone.

If you don't run as a company, these settings won't change how you're taxed. Sole traders and partnerships are taxed at personal income tax rates, so the personal tax cut above is the change to watch instead.

Business name and company fee increases

A few registration fees set by ASIC rose on 1 July 2026, so budget for the higher costs when you register or renew. The increases are modest but worth noting so nothing surprises you at renewal.

Here are the fee changes that now apply:

• Business name registration for one year rose from $45 to $47.
• Business name registration for three years rose from $104 to $108.
• Company registration rose from $611 to $636.
• Annual review fee for a proprietary company rose from $329 to $342.

Other compliance changes to know

Beyond payroll and tax, a set of compliance changes may apply depending on how you run and market your business. Not all of these will affect you, so scan the list for the ones that fit.

• Seafood labelling: Hospitality businesses must show the country of origin for seafood as Australian, Imported or Mixed.
• SMS sender registration: Businesses sending branded texts must register their sender IDs on the SMS Sender ID Register.
• Parental Leave Pay: The government scheme increased to 26 weeks.

How to check you're set up for the changes

A quick check helps you confirm you've met each change without a scramble. Work through these steps now:

1. Review your payroll and super timing so you pay super on each pay run within seven days of payday.
2. Confirm your minimum and award pay rates are updated for the new financial year.
3. Map your cash flow to account for more frequent super payments and higher wages.
4. Plan any equipment purchases against the permanent $20,000 instant asset write-off.
5. Budget for the higher business name, company registration, and annual review fees.

Stay on top of payroll and super changes with Xero

The move to payday super is the change most likely to affect your week-to-week routine, because it ties super to every pay run and a tight seven-day window. Payroll software that pays super automatically as part of each run takes the manual tracking off your plate, so you can meet the deadline without watching a calendar.With clear pay runs, automatic super and a real-time view of your numbers, you can move through the financial year knowing your obligations are handled.

Want a hand staying on top of these changes? Get one month free.

FAQs on business changes from 1 July 2026

Here are quick answers to common questions about the 1 July 2026 changes for Australian small businesses.

What changed for Australian businesses on 1 July 2026?

The biggest changes were payday super, a 4.75% rise in minimum and award wages, a personal income tax cut, and a permanent $20,000 instant asset write-off. Registration fees also rose and a few new compliance rules started.

Does payday super apply to small businesses?

Yes. Payday super has applied to all employers since 1 July 2026, so small businesses must pay super on each pay run, with contributions reaching employees' funds within seven days of payday.

What is the new minimum wage since 1 July 2026?

The national minimum wage rose to $26.44 an hour, or $1,005 a week, from the first full pay period on or after 1 July 2026. This was a 4.75% increase, and award wages rose by the same amount.

Is the instant asset write-off still available in 2026-27?

Yes. The $20,000 instant asset write-off is now permanent for businesses with aggregated turnover under $10 million, and it applies on a per-asset basis.