2026-27 Queensland Budget
Here are some key Insights from the 2026-27 budget that might directly affect you and your business.
The 2026/27 Queensland State Budget prioritizes stability for businesses by introducing no new or increased state taxes, which ensures a predictable landscape for asset financing.
However, because asset financing and business taxation are governed by both state and federal rules, the way you fund and write off business assets this financial year is shaped by a combination of the Queensland State Budget and complementary Federal Budget measures.
Additionally, from 1 July 2026, small businesses with an aggregated turnover of less than $10 million can permanently claim an instant tax deduction for eligible depreciating assets costing less than $20 000, following legislation passed as part of the 2026-27 federal budget. The $20 000 threshold applies per asset, allowing multiple assets to be written off immediately, helping improve cash flow and reduce compliance costs. Assets costing $20 000 or more can still be added to the simplified depreciation pool and depreciated over time, while pool balances below $20 000 can continue to be written off in full at the end of the year. The suspension of the five year lockout period for businesses that opt out of the simplified depreciation regime has also been extended until 30 June 2027. This measure follows the previous extension of the $20 000 instant asset write off for the 2025-26 financial year.
Some vital takeaways about the state budget from BDO Australia and PWC include;
Extended Apprentice & Trainee Rebate: The budget extended the 50% payroll tax rebate on apprentice and trainee wages until 30 June 2027. This reduces overall payroll tax liability for qualifying employers, freeing up working capital that can be redirected toward funding commercial vehicles, machinery, or equipment finance
A deliberate pause on tax reform with no new or increased taxes with the aim to support business confidence and household budgets during a period of economic uncertainty
Stable Payroll Tax Environment : The state budget maintained the payroll tax exemption threshold at $1.3 million and the standard rate at 4.75%. While some industry groups lobbied for a threshold increase, the lack of new tax hikes keeps operational forecasting stable when calculating your capacity to take on new asset debt.
Manufacturing Grants & Targeted Subsidies: Funding remains active for programs like the Towards Queensland Manufacturing Grants Program (TQMGP). Regional manufacturers can secure matched grants up to $1.5 million to buy highly specialized equipment, allowing businesses to significantly lower the net amount they need to finance through commercial lenders.
See the full Queensland Government Budget here.