A new financial year brings a fresh set of rules, and 2026-27 is no exception. From 1 July 2026, a number of legislated changes take effect that will affect almost every Australian taxpayer, from a cut to the lowest marginal tax rate to a new instant deduction for work expenses, a higher super contributions cap and a permanent instant asset write-off for small business.

At FinTax Partners in Greenslopes, Brisbane, we help individuals, families and businesses understand what these changes mean and plan around them early. Here is a clear summary of the key changes from 1 July 2026, plus the proposed changes on the horizon worth keeping an eye on.

What Changes for Individuals from 1 July 2026

A Cut to the Lowest Marginal Tax Rate From 1 July 2026, the tax rate on income between $18,201 and $45,000 reduces from 16% to 15%. This is the next legislated step of the personal tax cuts. The change is automatic. Your employer applies the updated PAYG withholding tables from your first pay period in the new financial year, so most people will simply see a small increase in their take-home pay without doing anything. The maximum benefit is around $268 per year for anyone earning $45,000 or more.

 New $1,000 Instant Work Deduction From the 2026-27 income year, eligible taxpayers will be able to claim an instant deduction of up to $1,000 for work-related expenses without needing to itemise every expense or keep receipts. If your genuine work-related expenses are below $1,000, this can simplify your return and may increase your deduction. If your expenses exceed $1,000, claiming actual costs with proper records may still be better. We can help you work out which approach gives you the better outcome.

What You Should Do: Check your first payslip of the new financial year to confirm the new rate is being applied, and start keeping your 2026-27 records in order from day one. Good habits at the start of the year make tax time far easier.

What Changes for Small Businesses from 1 July 2026

The $20,000 Instant Asset Write-Off Is Now Permanent The $20,000 instant asset write-off has been made permanent from 1 July 2026. Small businesses with an aggregated turnover under $10 million can immediately deduct the full cost of eligible assets costing less than $20,000 each, in the year the asset is first used or installed ready for use. Making this permanent gives small businesses long-term certainty to plan equipment and asset purchases, rather than waiting on year-by-year extensions.

The Super Guarantee Rate Stays at 12% The Super Guarantee (SG) rate reached 12% on 1 July 2025 and remains at 12% for 2026-27. There is no further increase scheduled, but it is still worth confirming your payroll system is applying the correct rate for all eligible employees.

Plan Early, Not at Year End The start of the financial year is the best time to review your structure, budget and tax plan, while you still have twelve months to act. Leaving everything to next June limits your options.

Superannuation Changes from 1 July 2026

A Higher Concessional Contributions Cap The concessional (before-tax) contributions cap increases to $32,500 for 2026-27, up from $30,000. This cap includes employer Super Guarantee, salary sacrifice and personal deductible contributions. A higher cap means more room to build your retirement savings tax-effectively, and potentially a larger deduction for personal concessional contributions. If your total super balance allows, you may also be able to use carry-forward unused cap amounts from prior years.

Review Your Contribution Strategy With a higher cap and the tax rate changes, it is worth reviewing your salary sacrifice and contribution plans for the new year. We can help you contribute within the caps while staying compliant.

Proposed Changes to Watch (Not Yet Law)

Several measures have been announced or proposed but are not yet law, and some are scheduled for 1 July 2027 rather than 2026. They are worth understanding now if you are planning ahead, but no action should be taken based on proposals alone:

• Negative gearing: a proposal to limit negative gearing on residential investment properties to new builds from 1 July 2027 has been announced. Properties owned on 12 May 2026 would be exempt under the proposal. This is not yet law.
• Capital Gains Tax: a proposal to replace the current 50% CGT discount with an inflation-indexation approach and a minimum tax rate for certain capital gains from 1 July 2027 has been announced. This is not yet law.
• Discretionary trusts: a proposed minimum tax floor on certain trust distributions has been announced. This is not yet law.

Because these are proposals, the detail can change as legislation progresses. We monitor these closely and will advise clients on any confirmed changes. If you are an investor or business owner, it is worth a conversation about how potential changes could affect your strategy.

Start the New Financial Year on the Front Foot

The best tax outcomes come from planning early, not scrambling at year end. The team at FinTax Partners in Greenslopes can help you understand how the 2026-27 changes affect you and build a plan for the year ahead, whether you are an individual, a small business owner or an investor across Brisbane.