The 2025–26 Federal Budget contained a number of measures that directly affect South Australian business owners. Here's a plain-English breakdown of the changes most relevant to businesses turning over $250,000 or more.

Instant Asset Write-Off

The $20,000 instant asset write-off threshold for small businesses (aggregated turnover under $10 million) has been extended for a further 12 months. This means eligible businesses can immediately deduct the full cost of assets costing less than $20,000 that are first used or installed ready for use by 30 June 2026.

Importantly, this applies per asset — so multiple assets under the threshold can each be written off immediately. If you've been holding off on a purchase, now is a good time to review whether it makes sense to bring that forward.

Small Business Tax Rates

The small business company tax rate remains at 25% for base rate entities — companies with an aggregated turnover below $50 million whose passive income is no more than 80% of total assessable income. No changes were announced in this Budget.

However, the Budget confirmed continued investment in ATO compliance programs targeting cash-economy businesses. If your business operates heavily in cash, ensure your records are thorough and reconciled.

Superannuation on Paid Parental Leave

From 1 July 2025, superannuation will be paid on Commonwealth Paid Parental Leave (PPL). Employers are not required to make these super payments — the government will pay them directly — but as an employer of staff taking PPL, you should be aware of how this interacts with your payroll records and STP reporting.

Energy Bill Relief

Small businesses will receive a $325 energy bill rebate applied directly to electricity bills from 1 July 2025, subject to eligibility criteria set by each state. In South Australia, the rebate will be administered through SA Power Networks. Contact your energy provider to confirm eligibility.

What You Should Do Now

  • Review any planned asset purchases before 30 June 2026 to assess instant write-off eligibility
  • Confirm your payroll is set up correctly for STP Phase 2 if not already done
  • Speak to your accountant about whether your current structure still makes sense given your turnover
  • Check your energy account to ensure the rebate is being applied

As always, individual circumstances vary significantly. If you'd like to discuss how these Budget measures affect your specific business, book an appointment and we'll work through it together.