Wrapping up 2025
We are now just one week away from the end of 2025. I hope you have achieved all your goals set at the beginning of the year, and wish you even greater success and good health in 2026.
As we close out 2025, here are key updates on recent tax law changes and upcoming changes for 2026.
- Payday Super
The Payday Super law has been passed, requiring superannuation contributions to be made with each wage payment. From 1 July 2026, employers must pay superannuation at the same time as wages. For example, employers who pay wages weekly must also pay superannuation weekly, and those who pay every two weeks must pay superannuation every two weeks.
- Mandatory Cash Acceptance
From 1 January 2026, businesses with annual turnover of $10 million or more in grocery and fuel sectors must accept cash for transactions up to $500. Businesses with turnover below $10 million are exempt from this requirement.
- Immediate Deduction for Assets under $20,000
The law allowing immediate deduction for asset purchases under $20,000 has been extended until 30 June 2026. For assets over $20,000, deductions will be made via depreciation based on the asset's effective life according to ATO standards.
- Additional Superannuation Tax (Division 296)
A new law is proposed to impose an additional 15% tax on superannuation balances over $3 million and an additional 25% tax on balances over $10 million. Currently, superannuation is taxed at 15%, but with this change, the excess portion above $3 million will be taxed at an additional 15% (total 30%), and the portion above $10 million will be taxed at an additional 10% (total 40%).
Note: This tax applies only to the earnings, not the total balance. For example, if the superannuation balance is $4 million and the annual return is 10% ($400,000), only the $100,000 exceeding the $3 million threshold is subject to the additional 15% tax ($15,000).
The proposed start date is 1 July 2026 (2027 financial year), but the law has not yet been finalised and may be subject to changes.
Thank you.
Disclaimer
This material has been prepared for information purposes ONLY, and is not intended to provide, and should not be relied on without Tax/Accounting/Legal/Financial/Credit advice from a relevant qualified adviser.