Australia: Bills implementing corporate loss carryback and other tax reforms, tariff changes receive Royal Assent
The legislation makes permanent the AU$20,000 instant asset write-off for small businesses, introduces a loss carry back tax offset, and establishes the news media incentive framework.
Bills implementing a corporate loss carryback, a permanent AU$20,000 instant asset write-off for small businesses, a news media incentive (NMI) framework, and removal of several nuisance tariffs have received Royal Assent.
Specifically, the Treasury Laws Amendment (Tax Reform No. 2) Act 2026:
- Allows corporate tax entities (excluding significant global entities) to carry back a tax loss from a tax year commencing on or after July 1, 2026, to the previous two tax years
- Permanently allows small businesses with an aggregated annual turnover of less than AU$10 million to immediately deduct eligible depreciating assets costing less than AU$20,000 first used or installed on or after July 1, 2026
- Provides an income tax exemption for Papua New Guinea franchise employment
- Provides that when a person acquires a residential dwelling due to inheritance or relationship breakdown, grandfathered negative gearing treatment is retained
In addition, the News Media Bargaining legislation implements the administrative and liability framework for the NMI, requiring parent entities to pay the charge when their service group provides significant social media or search services and meets Australian digital advertising revenue thresholds.
Finally, the Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026 repeals certain nuisance tariffs, sets approximately 500 customs duty rates to “free,” and extends temporary duty provisions for Russia, Belarus, and Ukraine.