What the 2025–26 Federal Budget means for SA small businesses

The 2025–26 Federal Budget contained several measures with direct relevance to small and medium-sized businesses across South Australia. While the headline numbers dominated the news cycle, the practical implications for your tax position, cash flow, and compliance obligations are worth understanding in detail.

Instant asset write-off extended

The $20,000 instant asset write-off threshold for businesses with an aggregated turnover of up to $10 million has been extended for a further 12 months to 30 June 2026. This allows eligible businesses to immediately deduct the full cost of qualifying depreciating assets — machinery, equipment, fit-outs, and certain software — rather than claiming the deduction progressively over the asset's useful life.

The key timing consideration: the asset must be first used or installed ready for use before 30 June 2026. Ordering equipment in June without it being operational before year-end does not qualify. If you're planning a significant capital purchase, start the process now.

Energy bill relief for small business

Eligible small businesses will receive a $325 energy bill rebate applied directly to electricity bills from 1 July 2025, administered through state and territory governments. In South Australia, eligible businesses should expect to see the credit applied automatically to bills — no application is required through SA Power Networks or your energy retailer.

The rebate is not assessable income for tax purposes and does not affect your GST obligations. If your business operates across multiple sites on separate accounts, each eligible account may qualify independently.

"The measures that will matter most are the ones quietly embedded in the Budget papers — not the announcements. Review your structure before 30 June, not after."

Professional services firms: trust distributions revisited

Following the ATO's 2022 guidance on section 100A and trust reimbursement arrangements, the Budget confirmed additional resourcing for the ATO to continue compliance activity around professional services trust structures — particularly those distributing to low-tax-rate beneficiaries in arrangements the ATO considers commercially incongruent.

If your advisory, legal, medical, or engineering practice operates through a discretionary trust, and you have not reviewed your distribution resolutions in the past 12 months, this financial year-end is the right time to do so. The ATO has signalled it is looking beyond obvious arrangements — risk is not limited to aggressive structures.

Superannuation: the $3M threshold timeline

The Budget confirmed the government's intention to legislate the additional 15% earnings tax on superannuation balances above $3M, with a commencement date of 1 July 2025 now in question following Senate crossbench resistance. As at the time of writing, the measure remains in the Senate and its passage is uncertain.

SMSF members with balances approaching or above the threshold should not defer planning on the assumption the measure will fail. The structural changes that would reduce exposure — contribution timing, pension phase management, asset rebalancing within the fund — take time to execute correctly and must be done with your fund's trust deed, investment strategy, and actuarial requirements in mind.