September 2026 Newsletter
Please click on the following link to view this month's newsletter for September 2026. We would like to highlight the following articles:-
$20,000 instant asset write-off now permanent for small business
The $20,000 instant asset write-off is now a permanent part of the tax system effective from the 2026-27 financial year.
Eligible businesses with turnover under $10 million that use the simplified depreciation rules can immediately deduct the business-use portion of assets costing less than $20,000.
The limit applies per asset, so several purchases can qualify, including computers, tools, equipment, furniture and some vehicles. Timing still matters: the asset must be first used, or installed ready for use, on or after 1 July 2026 before you can claim the deduction.
Government funding doesn't always mean tax-free income
If your business delivers services under a government-funded program, don't assume those payments are tax-free. The ATO has reminded providers that payments for services under participating Commonwealth programs generally count as assessable business income.
This affects sectors such as disability support, NDIS-related services, aged care, childcare, hearing services and veteran health services. Make sure these amounts are recorded correctly, included in your tax return and backed by proper records.
The ATO receives data on government program payments, so mismatches between what you received and what you reported are easy to spot.
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.