Before You Get Stuck Into the Eggnog, a Quick Checklist for Business Owners
As another year draws to a close, the Christmas decorations come out, Brisbane’s summer heat reminds us (again) why air-conditioning is essential infrastructure, and many business owners finally get a moment to pause and take stock.
For our clients, 2025 has been another busy year, managing staff, rising costs, cash flow pressures, and the occasional curveball from the Australian Taxation Office (ATO), who remain impressively consistent in not taking holidays. While the festive season is a well-earned break, it’s also a good time to reflect and do a little light planning for the year ahead.
Below are some key Australian tax updates and practical planning reminders particularly relevant to SMEs, along with a few things worth keeping in mind as we head into 2026.
Let’s start with the good news.
$20,000 Instant Asset Write-Off Extended
The $20,000 Instant Asset Write-Off has been extended to 30 June 2026, providing welcome certainty for small businesses planning equipment and technology purchases.
What this means:
Businesses with aggregated turnover under $10 million may immediately deduct eligible assets costing less than $20,000
The threshold applies per asset, not in total
Assets must be installed and ready for use by 30 June 2026
Whether you’re upgrading tools, vehicles, or IT systems, this extension gives you flexibility to invest when it suits the business, not just when EOFY panic starts creeping in.
Friendly reminder: Buying things you don’t need just for a tax deduction rarely ends well. Buying things you do need, with a tax benefit as a bonus, usually does.
Personal Tax Cuts Still Flow Through to Business Owners
The revised Stage Three personal tax cuts, which commenced from 1 July 2024, continue to affect how business owners structure income in 2025–26.
Lower marginal tax rates may influence:
Salary versus dividend decisions
Trust distribution strategies
Family group tax planning
If your business operates through a company or discretionary trust, it may be worth revisiting your structure to make sure it’s still pulling its weight. What worked well a few years ago doesn’t always age gracefully, tax strategies included.
Christmas Cheer, Gifts & FBT — Where Good Intentions Meet Tax Rules
Christmas is a great time to thank staff and clients. Unfortunately, Fringe Benefits Tax (FBT) doesn’t share the festive spirit.
Gifts to Staff
Non-cash gifts (such as hampers or vouchers) may be FBT-free if:
The value is under $300, and
The gift qualifies as a minor benefit
In those cases:
No FBT is payable
The cost is generally deductible
GST credits may still be available
Cash bonuses, however, are treated as salary and wages:
Subject to PAYG withholding
Subject to superannuation
Not subject to FBT
Same goodwill — very different tax outcome.
Christmas Parties
For many businesses:
On-site Christmas parties for employees are generally FBT-exempt
Off-site functions may also be exempt if the cost per head is under $300
Be mindful that including partners or family members can change the FBT outcome — sometimes faster than the dessert course arrives.
Gifts to Clients
The good news:
Client gifts are not subject to FBT
The fine print:
Promotional items are generally deductible
Entertainment-style gifts (such as meals or corporate boxes) may not be deductible, and GST credits may not apply
This is one of those areas where assumptions can quietly turn into surprises, and not the Christmas-morning kind. For more info read our previous blog here ‘Tis the season to be… giving tax-deductible gifts | M+H Private, Brisbane, Australia
Superannuation: Costs, Compliance and a New Rule to Be Aware Of
Superannuation remains both a growing cost of employing staff and a key compliance area.
The Superannuation Guarantee rate is currently 12%
Payday super will commence from 1 July 2026.
Late payments can result in lost deductions, penalties and additional ATO scrutiny, none of which improve anyone’s Christmas break.
Superannuation - Division 296 (Still Evolving)
You may have seen commentary around Division 296 and proposed changes to how very large super balances are taxed.
At this stage:
The rules are still evolving, and final legislation may change
The intent is to target very high super balances (greater than $3M)
Taxing of unrealised gains appears to have been scrapped
That said, for business owners planning a future business sale or holding appreciating assets in an SMSF, this is something worth keeping on the radar, calmly, not urgently, and preferably without panic-scrolling headlines.
Property Investors & Holiday Homes: A Quick Heads-Up
If you own a holiday home or short-term rental that also gets some personal use, the ATO has recently flagged a stronger focus on how these properties are actually used. Simply being “available for rent” may no longer be enough, genuine rental use now matters more, particularly during peak periods. Where properties are mainly used for personal or leisure purposes, deductions for ownership costs may be limited or denied, even if some rental income is earned. If this sounds familiar, it’s worth a review sooner rather than later.
Cash Flow: Still King (Even in a Brisbane Summer)
Between wages, interest rates and operating costs, cash flow continues to be top of mind for many Queensland businesses.
Worth asking:
Do we have a clear cash flow forecast for the next 6–12 months?
Are margins keeping up with rising costs?
Is pricing still realistic in the current market?
A simple forecast now can often highlight issues early, and help you actually enjoy your break.
Structure, Succession & the Bigger Picture
Christmas has a habit of prompting bigger-picture thinking, not just about tax returns, but about the future.
It can be a good time to reflect on:
Whether your business structure still suits your size and risk profile
Asset protection strategies
Succession or exit planning (even if it feels a long way off)
You don’t need all the answers now, starting the conversation is usually the hardest part.
Ready to Plan Ahead (Before the New Year’s Resolutions Fade)?
Tax planning probably isn’t on your Christmas wish list, but a short conversation now can save a lot of stress later.
With the $20,000 Instant Asset Write-Off extended, ongoing ATO focus on SMEs, FBT considerations, evolving super rules and increased attention on property arrangements, now is a great time to plan ahead.
Get in touch with our Brisbane team to book a 2026 planning session, or speak with your usual adviser, ideally before “I’ll deal with it later” becomes “Why didn’t I deal with this earlier?”
Wishing Our Clients a Relaxing Festive Season
From all of us at m+h Private, thank you for your continued trust throughout the year. We wish you and your team a Merry Christmas, a safe summer break, and a successful start to 2026.
We look forward to working with you in the year ahead.