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The minimum tax was announced as part of the 2026–27 Budget and is proposed to apply from 1 July 2028. However, the measure is not yet law.

The Australian Taxation Office (ATO) says about $21 billion in contractor payments is covered. It also estimates that around $1 billion in TPAR payments may be left out or under-reported this year, making the change relevant to both return preparation and income reporting compliance.

The change removes the tax deduction that previously reduced the after-tax cost of these charges. It also affects interest associated with older tax debts: the year in which the underlying debt arose does not, by itself, preserve deductibility.

A performance audit tabled in June 2026 found that the risk associated with rising small business tax debt had moved outside acceptable tolerance levels. The tax administration has since agreed to implement all eight recommendations arising from the review.

The framework became law in August 2026 and is designed to encourage major social media and internet search businesses to enter commercial agreements with Australian news organisations.

The measure is not yet law. Until legislation is passed, the existing rules continue to apply. However, the proposed changes could materially affect employers, fleet operators and employees considering a novated lease for a higher-priced electric vehicle.

That extra breathing space is real, but it comes with fine print. With a month to go, anyone still to lodge, or still weighing up whether to use a tax agent, has decisions to make well before that weekend.