Some news from the ATO from the last quarter:
ATO to continue accepting credit card payments until 30 June 2027
The Australian Taxation Office had previously announced that it would stop accepting direct credit card payments from 30 November 2026.
Following concerns raised by small businesses and other taxpayers, the Australian Government has announced transitional funding that will allow the ATO to continue accepting direct credit card payments until 30 June 2027. This will provide additional time for the ATO to consult with affected taxpayers and consider targeted support and alternative payment arrangements.
After 30 June 2027, taxpayers will still be able to make credit card payments through third-party providers. Other payment methods, including debit card and bank transfer, will also remain available.
Dynamic PAYG Instalments Coming from 1 July 2027
Expecting to commence from 1 July 2027, businesses will be able to use an ATO-approved calculation incorporated into participating accounting software to align their PAYG instalments more closely with current business performance. This is intended to make instalment payments more responsive to changing trading conditions, rather than relying primarily on historical income.
The Australian Taxation Office is currently conducting pilot programs and working with software providers and stakeholders ahead of the proposed commencement date. Further details about the operation of the method are expected as implementation progresses.
Changes to SMSF Limited Recourse Borrowing Arrangements from 10 August 2026
The law governing limited recourse borrowing arrangements, or LRBAs, for regulated superannuation funds has changed.
For arrangements entered into on or after 10 August 2026, real property that does not satisfy the definition of “business real property” is excluded from the assets that may be acquired under an LRBA. As a result, an SMSF generally cannot enter into a new LRBA to purchase residential investment property.
The changes do not affect arrangements entered into before 10 August 2026 or the refinancing of those existing arrangements.
$20,000 Instant Asset Write-Off Made Permanent
From 1 July 2026, the $20,000 instant asset write-off is permanent for eligible small businesses with aggregated turnover of less than $10 million that use the simplified depreciation rules.
Eligible businesses can immediately deduct the business-use portion of qualifying assets costing less than $20,000. The threshold applies per asset, and small business pool balances below $20,000 may also be immediately deducted.
Contact your Harris Black team member to discuss how these changes affect your business!
Further reading:
ATO to continue accepting credit cards until 30 June 2027 | Treasury Ministers
Dynamic PAYG instalments are coming – have your say | Australian Taxation Office
Limited Recourse Borrowing Arrangement (LRBA) Provisions | Australian Taxation Office
$20,000 instant asset write-off (IAWO) here to stay | Australian Taxation Office