Every change hitting Australian small businesses on 1 July 2026, from Payday Super to ASIC fees and ATO interest deductions
1 July 2026 is one of the most consequential dates in recent small business history. Several significant changes to employment, tax, compliance and operating costs all take effect on the same day, and the window to prepare is closing.
Here is every change your business needs to know about, what it means in practice, and what to do before the deadline arrives.
Payday Super starts 1 July
From 1 July, superannuation must be paid on every payday rather than quarterly. Once submitted, contributions must be received by the employee’s super fund within seven business days of payday. Super funds then have three business days to allocate or return contributions.
The ATO has been explicit: a payment counts only when it is received by the fund, not when it is submitted. Submitting on day seven may not leave enough time to correct errors. The ATO recommends paying super on payday itself to allow maximum correction time.
The Small Business Superannuation Clearing House closes permanently on 1 July. There will be no read-only access after that date. All SBSCH transaction history must be downloaded before 30 June. Most employers currently using the SBSCH already have super payment functionality in their existing payroll software. Check with your provider now if you are unsure.
Employers who make honest mistakes and take steps to fix them quickly will not be the focus of ATO compliance action in the first year, according to ATO Deputy Commissioner Emma Rosenzweig. But deliberate non-compliance and errors left uncorrected are a different matter.
New minimum wage and award rates take effect
The Fair Work Commission’s Annual Wage Review decision takes effect on 1 July, with a 4.75% increase to the national minimum wage and all modern award wages. The increase affects close to 2.8 million Australians.
The increase includes new award classifications and phased changes to junior pay rates, with further adjustments continuing through to December 2026. Every business with employees on a modern award needs to check the updated pay guide for their specific award and classification structure. Updated pay guides are published at fairwork.gov.au following the Annual Wage Review decision.
For businesses in hospitality, retail and care where wages represent the largest share of revenue, the 4.75% increase is a genuine cost planning challenge arriving alongside the other July 1 changes.
Fuel excise: the cut is tapering, not ending
An earlier version of our article stated that the full fuel excise rate would return on 1 July. That has since changed. The federal government announced a last-minute extension of the excise discount, with a tapered rather than immediate removal.
Between 1 July and 2 August 2026, the discount drops to 16 cents per litre before ending completely. Businesses in transport, agriculture, construction and any other fuel-dependent sector should adjust their fleet and transport cost projections accordingly, budgeting for the 16 cents per litre discount through July before factoring in the full excise restoration from August.
ASIC fees are increasing
If you operate a proprietary company or manage business name registrations, your costs are going up from 1 July. Business name registration and renewal increases to $47 for one year. Company registration increases to $636. Update your accounts payable and budgeting accordingly.
SMS Sender ID registration is now required
If your business sends automated text messages to customers using your business name, for example for appointment reminders, booking confirmations or delivery notifications, you must register your SMS Sender ID with the new registry. Unregistered sender IDs risk having messages blocked as potential scam texts. Businesses that rely on SMS for customer communication should register their brand name now to avoid disruption to their messaging.
New AML and CTF laws for tranche two businesses
If your business operates in real estate, law, accounting or conveyancing, new anti-money laundering and counter-terrorism financing laws mean you must begin implementing stricter customer identification checks from 1 July. These expanded obligations fall on what are termed tranche two designated services. Affected businesses should confirm their obligations with a legal adviser and ensure customer identification processes are in place before the deadline.
ATO interest charges are no longer tax deductible
From 1 July, businesses can no longer claim a tax deduction for General Interest Charge or Shortfall Interest Charge imposed by the ATO. This makes carrying outstanding tax debt significantly more expensive from the new financial year. Any business with ATO debt should review its position before 30 June and consider clearing outstanding amounts where possible before the deductibility of those interest charges disappears.
Paid Parental Leave expands to 26 weeks
Government-funded paid parental leave increases to 26 weeks for children born or adopted on or after 1 July 2026. For businesses with employees who are planning or expecting parental leave, HR processes and workforce planning should account for the extended leave block. While the government funds the payments, the administrative obligations for employers remain and planning ahead avoids operational disruption.
Working from home deductions update
The ATO has confirmed the fixed rate method for working from home deductions is now 70 cents per hour, up from 67 cents in previous years. This covers electricity, internet, phone usage, stationery and computer consumables in a single calculation. Furniture and technology are claimed separately under depreciation rules.
A complete hours log is required throughout the year. The ATO has removed the ability to use a four-week representative diary. If you have not been keeping a log throughout 2025-26, begin reconstructing what you can from calendars, rosters and email records now.
The ATO has flagged working from home claims as a priority audit area for the 2026 tax year. Double-dipping, claiming electricity or internet separately while also using the fixed rate, is one of the most common errors identified.
EOFY tax obligations and the ATO’s focus areas
The ATO has named two primary compliance focus areas for the 2026 tax year: work-related deductions and omitted income. The three golden rules for work-related expenses remain: the expense must relate to earning your income, you must have spent the money yourself without reimbursement, and you must be able to substantiate the claim with records.
All income sources must be declared, including side hustles, cash jobs, bank interest, dividends and rental income. The ATO is also warning against relying on AI platforms, finfluencers or informal advice from friends for tax guidance. Taxpayers remain accountable for the accuracy of their returns regardless of the source of advice used.
Instant Asset Write-Off threshold remains at $20,000
The instant asset write-off threshold for eligible small businesses with aggregated annual turnover below $10 million remains at $20,000 ex GST for the 2025-26 financial year. Assets costing less than $20,000 and first used or installed ready for use before 30 June 2026 can be immediately deducted in full. Assets costing $20,000 or more go into the small business simplified depreciation pool.
CGT planning starts now even though changes land in 2027
The major CGT changes, including the removal of the 50% CGT discount, the introduction of a 30% minimum tax on capital gains, and the end of the blanket pre-1985 asset exemption, do not take effect until 1 July 2027. But the planning window is already open. Business owners with long-held company structures, pre-1985 assets or significant unrealised capital gains should begin reviewing their structures with a tax adviser now, before valuers, lawyers and advisers become increasingly in demand as the deadline approaches.
Your July 1 checklist
Download and save all SBSCH transaction history before the service closes permanently on 30 June. Confirm your payroll software can process super on every payday and check processing times with your provider. Review your modern award pay guide for the new rates and classifications taking effect from 1 July. Model the full cost impact of the 4.75% wage increase across your specific roster and classification mix. Adjust transport and fleet cost projections for a 16 cent per litre fuel discount through July before the full excise restoration in August.
Update accounts payable for increased ASIC company and business name renewal fees. Register your SMS Sender ID if your business sends automated customer text messages. If you operate in real estate, law, accounting or conveyancing, confirm your AML and CTF obligations are in place. Clear outstanding ATO debt where possible before 30 June, as interest on that debt will no longer be tax deductible from 1 July.
Update HR processes to account for the expanded 26-week Paid Parental Leave entitlement. Ensure all work-related expenses are documented and your WFH hours log is as complete as possible. Declare all income sources in your 2025-26 return. Speak to a registered tax adviser before lodging if you have any uncertainty about your claims or structure.
This article draws on ATO guidance, Fair Work Commission decisions, federal government announcements and regulatory updates current as at June 2026. Business owners should seek advice from a registered tax or legal professional for guidance specific to their situation.
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