2026 Tax Changes Australia: What Perth Small Businesses Need to Know

Australia’s tax landscape continues to evolve, and 2026 is expected to bring several updates that directly affect small businesses across Western Australia. For many SMEs, understanding upcoming obligations early is essential for better planning, budgeting, and compliance. As the new financial year approaches, staying informed helps businesses avoid penalties, reduce risks, and manage their finances with greater confidence. Many Perth owners begin reviewing their structure, expenses, and reporting practices ahead of time to ensure they are ready for any regulatory shift with the guidance of an experienced accountant perth.

1. Expected Adjustments to Small Business Tax Rates

The Federal Government has been gradually modifying small business tax thresholds to encourage growth and investment. While final updates for 2026 will depend on Treasury announcements, SMEs may see further alignment of company tax rates and concessional thresholds. This is particularly relevant for entities planning to file company tax return or restructure their operations in the coming year. Being aware of rate changes helps owners calculate cash flow requirements more accurately and set realistic budgets for expansion.

2. Possible Changes to Deductions and Business Concessions

Small businesses often rely on deductions for tools, equipment and operational expenses. In 2026, several concessions—such as instant asset write-offs and simplified depreciation rules—may see updated limits or eligibility criteria. Many micro and small enterprises review their business accounting reports each quarter to ensure they’re maximising claims without breaching compliance rules. Planning investments with potential legislative adjustments in mind helps avoid overspending or missing out on beneficial deductions.

3. Payroll Tax and Superannuation Updates

Employers in WA should prepare for potential updates to superannuation rates and payroll reporting obligations. The government has been focused on improving employee protections, which could mean further adjustments to reporting timelines and employer contributions. Staying ahead of these changes helps businesses avoid errors in payroll tax filing and ensures staff payments remain accurate throughout the year. It also reduces the chances of unexpected liabilities during audits or compliance reviews.

4. ATO’s Increased Focus on Digital Reporting & Automation

The ATO has continued expanding digital reporting systems, and by 2026, more automated compliance tools are expected to be mandatory. This includes enhancements to STP Phase 2, real-time data cross-checking, and improved detection of discrepancies. For many owners, working with a trusted tax accountant perth helps ensure they adapt to new reporting formats smoothly. Automating tasks also reduces manual errors and improves the accuracy of BAS, payroll, and year-end lodgements.

5. New Rules That May Affect Sole Traders and Partnerships

Sole traders and small partnerships should expect updates to income reporting thresholds, deductions, and lodgement requirements. As Australia continues to refine digital systems and tighten compliance frameworks, accurate income tax return filing becomes more important than ever. Understanding 2026 changes early allows sole traders to plan quarterly obligations and maintain clean, clear records throughout the financial year.

6. GST and BAS Updates to Anticipate

Changes to GST thresholds or reporting categories may be introduced to reflect economic shifts and support smaller enterprises. Businesses lodging bas returns should be prepared for revisions to digital lodgement formats, invoice-matching systems, or submission timelines. Setting up streamlined bookkeeping practices makes these adjustments far easier to manage.

7. Preparing Your Business for 2026

Planning ahead helps businesses reduce risks and avoid rushed decision-making. A practical approach includes:

• Reviewing your structure with a financial advisor

• Updating bookkeeping systems before new rules take effect

• Checking your forecasted profit and cash flow

• Preparing documentation early for individual tax return or business-related lodgements

• Reviewing your payroll systems for employee-related changes

• Staying updated with ATO announcements throughout the year

Staying compliant not only avoids penalties but also gives SMEs a stronger foundation for growth.

Also read: Business Growth Strategies: How an Accountant Can Act as Your Strategic Partner

Final Thoughts

2026 will bring significant changes to the way small businesses in Perth manage tax, reporting, and financial planning. Being proactive allows business owners to adapt with confidence. Whether you’re managing payroll obligations, preparing your annual lodgement, or simply trying to stay compliant, understanding the outlook early is the best strategy for a smooth financial year.