What Accountants Need to Know From the 2026 Federal Budget

The federal budget is a key planning moment for Australian accountants. It sets the direction for tax, superannuation, compliance and business support measures that can affect client advice for the next financial year and beyond.

Key themes of the 2026 federal budget, delivered on 12 May 2026, include cost-of-living relief, small business cash flow support, tax reform, housing-related tax changes and a stronger focus on compliance.

For accountants, the release of the federal budget is an opportunity to reconnect with clients to explain what changed, and help them understand what the federal budget 2026 means for their tax position. With the right systems, accountants can turn budget updates into practical advice. Intuit QuickBooks can support this work with tools for tax preparation, reporting, payroll and advisory workflows.

Key insights from the federal budget changes

The 2026–27 federal budget centres on tax reform, cost-of-living support and measures to strengthen business resilience. For accountants, the key point is that these changes affect both short-term tax planning and longer-term client strategy.

Clients will likely have questions about income tax, deductions, Medicare levy thresholds and investment property rules. Businesses may need guidance on the instant asset write-off, loss carry back, PAYG installments, payroll and compliance requirements.

There are also important changes for investors. Updates to negative gearing and capital gains tax may influence decisions around buying, selling or restructuring property. Accountants may also need to review how tax on shares and future CGT rules affect clients with investments.

This is also a good time to review workflows. Using reliable accounting software can help keep records up to date, track cash flow and simplify tax preparation.

Australian federal budget changes 

The 2026 Australian federal budget includes changes across individual tax, business tax, superannuation, housing and compliance. Some measures apply from 1 July 2026, while others start in later income years. Accountants should check whether each measure is enacted before giving final advice, as some Budget announcements still require legislation or further ATO guidance.

Individual tax measures

Individual tax measures include a planned $1,000 instant tax deduction for work-related expenses from 2026–27 and a $250 Working Australians Tax Offset from 2027–28. Medicare levy low-income thresholds also increase from 1 July 2025. From 1 July 2027, CGT changes may affect investment planning, including the replacement of the 50% CGT discount with an inflation-based approach.

Business tax measures

Business measures include a planned permanent $20,000 instant asset write-off from 1 July 2026 for eligible small businesses, although this is not yet law. Eligible companies may also be able to carry back current-year losses against tax paid in the previous two income years from 2026–27. PAYG installment changes are also planned from 1 July 2027.

Superannuation updates

From 1 July 2026, Payday Super changes require employers to pay super guarantee on payday, changing payroll timing and cash flow planning. Contribution caps also rise, with the concessional cap increasing to $32,500 and the non-concessional cap increasing to $130,000. Accountants should review payroll setup and client processes before the change begins.

Deductions, incentives or offsets 

Planned changes include:

• A $1,000 instant tax deduction from 2026–27
• A $250 Working Australians Tax Offset from 2027–28
• From 1 July 2027, negative gearing for residential property will be limited to new builds, with existing properties held before 7:30pm AEST on 12 May 2026 exempt from the change.

How accountants can provide ongoing support

Accountants can help clients turn Budget announcements into practical next steps. That may include reviewing cash flow, modelling the impact of investment incentives, checking eligibility for tax measures, identifying industry-specific funding and preparing for workforce or skills-related initiatives.

Here’s how accountants can support:

Individual clients

• Explain how tax offsets, deductions, Medicare levy thresholds, CGT changes and negative gearing rules may affect their tax position
• Help clients prepare earlier for tax season by checking records, income sources, investment gains and deduction evidence

Small businesses

• Help assess eligibility for the instant asset write-off
• Model the cash flow effect of asset purchases and prepare for Payday Super
• Review cash flow forecasts to make sure clients can meet tax, payroll, super and supplier obligations

Mid-size businesses

• Support deeper planning across PAYG instalments, reporting, payroll, compliance and business investment
• Create more advanced workflows for different industries with business tools such as Intuit QuickBooks Online Advanced

Navigating compliance and reporting requirements

Compliance and reporting remain a priority after the federal budget 2026. Accountants should monitor ATO guidance, payroll changes, super timing, record keeping, GST reporting and new tax reform requirements.

• The ATO confirms the 2026–27 Budget includes changes to tax and super laws, covering areas such as standard deductions, PAYG instalments, loss refundability, CGT, negative gearing, trusts and R&D.
• ATO compliance activity also continues, with the Shadow Economy Compliance Program extended to 2028–29 and $10.5 billion in unpaid taxes identified as at 30 June 2025.
• Accountants can support clients by maintaining accurate records, checking payroll data and reviewing super processes.

Opportunities for accountants 

The Budget creates several opportunities for accountants to provide proactive, practical advice—and avoid business tax mistakes.

• Reviewing tax strategies: Help clients understand how Budget measures affect deductions, offsets, CGT, and investment income.
• Updating forecasts and budgets: Update client forecasts to reflect tax cuts, asset purchases, PAYG instalment timing, and expected changes to cash flow.
• Assessing cash flow impacts: Help small businesses plan for Payday Super, asset purchases, tax payments and seasonal trading conditions.
• Identifying eligibility for new incentives: Check whether clients may qualify for the instant asset write-off, loss carry back, R&D changes or other business measures.
• Planning for upcoming compliance changes: Prepare clients for payroll compliance changes, superannuation, PAYG instalment and record-keeping updates before deadlines arrive.

Tax reform timeline: Important dates 

There are a few key dates to keep in mind for accountants that may affect future workflows and plans for clients.

Financial year changes

Several changes affect the 2026–27 financial year:

• Payday Super starts from 1 July 2026
• The concessional contributions cap rises to $32,500 and the non-concessional contributions cap rises to $130,000 from 1 July 2026
• A $1,000 instant tax deduction is available for 2026–27 and a permanent $20,000 instant asset write-off from 1 July 2026

It’s a good idea to check the latest ATO status before advising on measures that are not yet law.

Upcoming tax reform dates

From 1 July 2027, the Working Australians Tax Offset, negative gearing reforms and CGT changes are planned to begin, including limits on negative gearing for established residential property and changes to the CGT discount.

Businesses may also gain more flexibility to opt in to monthly PAYG installments, with expanded access to dynamic calculations through business software such as Intuit QuickBooks business tools.

Future measures under consultation 

Some measures are still being developed and may change. These include updates to R&D tax incentives, new rules for some trusts and support for start-ups.

Accountants should keep an eye on updates from Treasury and the ATO before advising clients.

Let Intuit support your accountant workflow 

The 2026 federal budget puts accountants front and centre to explain what’s changed, what starts now, and what to plan for next. From tax and super to business incentives and PAYG updates, there are clear opportunities to deliver practical advice.

Intuit QuickBooks makes it easier. When changes affect cash flow, deductions or compliance, accurate data helps you act fast. With our business tools, you can keep client data organised, run reports, manage payroll and support advisory work in one place. 

Explore the Intuit Accountant Suite to streamline your workflow and spend more time helping clients make confident decisions.