The Australian government has enacted several tax and trade laws after the relevant bills received Royal Assent. These laws are part of a broad package of Australian tax and trade reforms that include new corporate loss carryback, reduction of hundreds of customs duties, and a new liability framework for major digital platforms.

Main Tax Measures and Changes

One of the enacted laws is the Treasury Laws Amendment (Tax Reform No. 2) Act 2026, which introduces several important tax measures. First, from tax years beginning on or after July 1, 2026, eligible corporate tax entities, other than significant global entities, can carry back tax losses for up to two previous tax years. This allows a company that becomes loss-making to potentially recover tax paid in earlier profitable years, improving cash flow.

The Act also makes the AUD 20,000 instant asset write-off permanent for small businesses with aggregated annual turnover below AUD 10 million. Eligible depreciating assets costing less than AUD 20,000 can be immediately deducted if they are first used or installed on or after July 1, 2026. This is designed to encourage smaller businesses to invest in equipment and other business assets by providing an immediate tax deduction rather than requiring deductions over several years.

Other measures include an income tax exemption for Papua New Guinea franchise employment and the protection of existing negative gearing treatment in certain cases where residential property is acquired through inheritance or a relationship breakdown.

Separate News Media Bargaining legislation establishes the administrative and liability framework for the News Media Incentive (NMI). Under the legislation, parent entities can become liable for a charge where their corporate group provides significant social media or search services and meets specified Australian digital advertising revenue thresholds. 

Finally, the Customs Tariff Amendment (Incorporation of Proposals) Act (No. 1) 2026 reduces trade barriers by removing certain nuisance tariffs and making around 500 customs duty rates free of duty. Additionally, it extends temporary tariff arrangements concerning Russia, Belarus, and Ukraine.

Conclusion

Collectively, these reforms represent a significant modernization of Australia's fiscal and trade landscape. By supporting business cash flow, simplifying tax compliance for smaller entities, and establishing a new framework for digital platforms and the local news sector, the government is fostering a more resilient economic environment.