The FY2026/27 Federal Budget was delivered as Australia’s small and medium sized enterprises (SMEs) operate in an increasingly complex landscape, navigating cost pressures and regulatory changes amidbroader economic uncertainty.
With previously announced reform to superannuation and updates to the tax system, the support of trusted advisers will be critical in helping small businesses understand their obligations, make informed decisions and navigate these changes with confidence.
The budget delivered several measures aimed at supporting SMEs, including making the Instant Asset Write Off permanent, extending electric vehicle Fringe Benefits Tax (FBT) incentives until next year, and investing $10 billion in national fuel and fertiliser security initiatives. The Government will also reintroduce loss carry back, enabling small businesses to use losses from the current income year to receive a refund from tax paid in the prior two years.
The Budget’s proposed Capital Gains Tax Discount (CGT) changes will be closely watched by the SME community. Maintaining strong incentives for long-term investment and entrepreneurship remains critical, particularly for startups and growing businesses that rely on external capital to scale. Business restructuring could be a difficult and costly undertaking for small businesses, adding to margin pressure.
MYOB CEO Paul Robson said the Budget responds to some of the challenges facing Australian SMEs.
“Small and medium businesses are managing rising employment costs, new compliance obligations, changing regulatory settings as well as softer economic conditions,” Paul said.
“It will be increasingly important for SMEs to seek advice from trusted advisors, such as their accountant, as they navigate these changes and make necessary adjustments. Getting the right guidance will help businesses avoid costly mistakes, reduce disruption, and stay focused on performance and growth.”
The latest MYOB Business Monitor, which surveyed more than 1,000 SMEs ahead of the Budget, found tax relief was among the top priorities for small business owners. Half of all SMEs said this year’s Budget would directly influence their investment and expansion decisions.
“Making the Instant Asset Write Off permanent removes some of the uncertainty that has made it harder for businesses to invest with confidence in the past,” Paul said.
The $10 billion fuel and fertiliser security package is also expected to deliver long-term benefits for SMEs across agriculture, transport, manufacturing and logistics. Fuel was identified as the number one cost pressure facing SMEs in the latest MYOB Business Monitor, cited by 51% of respondents, with average fuel costs rising by around 18% over the past 12 months.
“Fuel remains the single biggest cost pressure facing SMEs,” Paul said.
“A domestic fuel and fertiliser security package of this scale is a meaningful long-term investment into Australian businesses and supply chains.”
The extension of the Electric Vehicle (EV) FBT discount will also help businesses manage fleet costs and reduce long-term operating expenses over time.
The latest MYOB Business Monitor highlights that SME confidence remains under pressure, with business conditions and policy settings continuing to shape growth and investment decisions.
Nineteen per cent of SMEs reported revenue growth over the past 12 months, while 67% expect the economy to soften further in the year ahead. One in four SMEs said they would expand operations if meaningful support was delivered in this Budget, while 65% indicated they would delay investment or hiring decisions if their priorities were not addressed.
“SMEs are resilient, ambitious and ready to grow, but without confidence in the road ahead, the decisions to invest, hire and expand become more challenging,” Paul said.
“Tonight’s Budget provides some important measures that enable long-term business planning. The focus now must be on ensuring these unlock confidence and investment across a sector that remains central to the Australian economy.”
About MYOB
MYOB is a leading provider of cloud-based business management solutions with a core purpose of helping more businesses in Australia and New Zealand to start, survive and succeed. MYOB’s next-generation technology platforms deliver end-to end solutions for people and finance through to tax, supply chain, projects, employees and customers, empowering businesses with 0 to 1000 employees alongside a network of accountants, bookkeepers and consultants. For more information visit myob.com or follow MYOB on LinkedIn.