End of Financial Year - 2026

In this edition, we highlight key considerations for the end of the financial year.

Personal deductible superannuation contributions
Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your personal savings). Please note that you may be able to claim a tax deduction for these contributions if you meet certain eligibility rules.

In most instances, the concessional contribution cap is $30,000 for the year ended 30 June 2026 and this includes any compulsory super contributions your employer makes on your behalf.

Carry-forward rule: If your total super balance was below $500,000 at 30 June 2025, you may be able to carry forward unused concessional cap amounts from the previous five years. Please note that any unused cap from the 2020–21 financial year will expire permanently on 30 June 2026 and cannot be recovered after this date.

Please contact us if you want to understand the tax benefits of claiming a deduction for a personal superannuation contribution.

Pension payments
Certain superannuation pensions and annuities are subject to rules that determine minimum and maximum benefits to be paid in a financial year.

Please make sure that you have met your minimum pension requirements before 30 June 2026. The minimum percentage rates can be found at the following link.

Please contact us immediately if you believe you have not met your minimum pension requirements.

Instant asset write off - $20,000

The $20,000 instant asset write-off has been legislated for the 2025–26 financial year. Eligible small businesses with aggregated annual turnover of less than $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2025 and 30 June 2026.

The $20,000 threshold applies on a per-asset basis, so small businesses can write off multiple assets provided each one is below the limit. The asset must be physically on-site and ready to operate by 30 June 2026.

Please note: the Government announced in the 2026–27 Budget (May 2026) a proposal to make the $20,000 instant asset write-off permanent from 1 July 2026. However, this measure has not yet been legislated and the threshold is currently legislated to revert to $1,000 from 1 July 2026. We will keep you updated as this progresses.

Payday Super 1 July 2026

From 1 July 2026, employers will be required to pay superannuation guarantee contributions at the same time as salary and wages, rather than quarterly. Contributions must be received by the employee's super fund within seven business days of each payday.

Key steps for employers to take before 30 June 2026:

Review and update your payroll system to support per-payday super payments.
Ensure sufficient cash flow is available to fund super at the time wages are paid.
If you currently use the ATO Small Business Superannuation Clearing House (SBSCH), note that this service will close on 1 July 2026. You must transition to an alternative SuperStream-compliant clearing house before that date.
Be aware that the ATO will have real-time visibility of late or missed contributions from 1 July 2026.

Payroll - end of year finalisation through STP
The end of year payroll finalisation declaration must be submitted to the ATO for each employee by 14 July 2026. Please ensure the payroll has been reconciled before the declaration is made to the ATO.

Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.

Important: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval.