The beginning of a new financial year is an ideal time to review your tax position and understand the changes that may affect you over the months ahead.

Several tax measures introduced for the 2026/27 financial year may create new opportunities for individuals and businesses, while also reinforcing the importance of planning ahead rather than waiting until tax time.

Understanding these changes early can help you make informed financial decisions, improve cash flow and avoid unnecessary surprises throughout the year.

What this article covers

In this article, we’ll explore:

• the new standard work-related deduction for eligible employees
• the permanent $20,000 Instant Asset Write-Off for eligible small businesses
• how Company Loss Carry-Back provisions may improve business cash flow
• why changing tax settings make proactive tax planning more important than ever
• a practical checklist to help you prepare for the year ahead.

A New Option for Work-Related Deductions

From the 2026/27 income year, eligible employees may be able to choose a standard work-related deduction of up to $1,000 instead of claiming individual work-related expenses.

For taxpayers with relatively modest work-related expenses, this may simplify the tax return process by reducing record-keeping requirements.

However, the standard deduction won’t necessarily provide the best outcome for everyone.

If your legitimate work-related expenses exceed the standard deduction, claiming your actual expenses may result in a larger deduction.

What you should consider

• Estimate your likely work-related expenses before deciding which method best suits your circumstances.
• Continue keeping records throughout the year until you’re confident which option provides the better outcome.
• Speak with your adviser if you’re unsure which approach is right for you.Greater Certainty for Small Business Investment

Eligible small businesses can continue to benefit from the permanent $20,000 Instant Asset Write-Off, providing greater certainty when planning business investment.

Rather than rushing to purchase equipment before changing legislative deadlines, businesses can now make purchasing decisions based on operational needs and long-term strategy.

Remember that the threshold generally applies to each eligible asset individually, provided the relevant eligibility requirements are met.

What you should consider

• Review planned equipment purchases early.
• Confirm eligibility before making significant purchases.
• Consider how asset purchases fit within your broader cash flow strategy.

Can a Tax Loss Become a Cash Refund?

For eligible companies, the Company Loss Carry-Back provisions may provide valuable cash flow support during more challenging trading periods.

Where the eligibility criteria are met, companies may be able to offset current-year trading losses against tax paid in previous income years, potentially resulting in a tax refund.

For example, if your business paid company tax in earlier profitable years but experiences a trading loss this financial year, the Loss Carry-Back provisions may allow some of that previously paid tax to be refunded, improving cash flow when it’s needed most.

Eligibility requirements apply, including limitations relating to your company’s franking account balance, so professional advice is recommended before relying on these provisions.

What you should consider

• Review your company’s expected trading position.
• Consider whether the Loss Carry-Back provisions may apply.
• Discuss your circumstances with your adviser before finalising your tax position.

Tax Planning May Look Different This Year

Tax planning isn’t simply about maximising deductions. It’s about making informed financial decisions throughout the year.

Changes to individual tax settings mean some strategies that worked well in previous years may no longer deliver the same benefit. Decisions such as making additional concessional superannuation contributions, bringing forward deductible expenses or timing business purchases should be considered within the context of your overall financial position.

Rather than relying on last year’s strategy, reviewing your circumstances each year helps ensure your tax planning continues to support your personal and business goals.

Why Early Planning Matters

One of the most common mistakes individuals and businesses make is leaving tax planning until the end of the financial year.

By then, many opportunities may no longer be available.

Reviewing your position early gives you more time to make informed decisions, manage cash flow, consider investment opportunities and respond to changing circumstances before deadlines become an issue.

Good tax planning is an ongoing process, not simply an end-of-year exercise.

Practical Planning Checklist

As you begin the new financial year, consider asking yourself:

✔ Have I reviewed whether the standard work-related deduction is the best option for my circumstances?

✔ Are there business assets I plan to purchase this year?

✔ Could my business benefit from the Instant Asset Write-Off?

✔ If business performance changes, have I discussed the Company Loss Carry-Back provisions with my adviser?

✔ Have I reviewed my expected income and tax position rather than waiting until June?

✔ Is it time to schedule a tax planning review?

Action Plan

The best tax outcomes are rarely achieved through last-minute decisions.

This financial year, consider:

• reviewing your tax position early
• maintaining accurate financial records throughout the year
• planning business purchases before committing
• discussing significant financial decisions with your adviser
• scheduling a tax planning review well before the end of the financial year.

A little planning today can provide greater certainty and create more opportunities throughout the year.

Planning Ahead with Confidence

Tax legislation continues to evolve, making it more important than ever to stay informed and review your strategy regularly.

Rather than waiting until tax time, proactive planning throughout the year can help you make informed decisions, improve cash flow and avoid unexpected outcomes.

At Supervision Group, we help individuals and businesses navigate changing tax legislation through practical accounting, taxation and business advisory services. If you’d like to understand how the latest tax changes may affect your circumstances, we’d be happy to help you plan with confidence throughout the financial year.