What the FY27 Federal Budget means for First Nation Businesses

Plain English. No spin. Just what you need to know this week.

Every year the Federal Budget gets wall-to-wall coverage and very little of it is written for you. Politicians talk in billions. Journalists talk in politics. And you're just trying to work out what it actually means for your business, your family, and your community.

This year there's actually a lot in it. Let's go through what matters.

The 51% IPP rule: We're glad to see this.

For too long, procurement benefits meant for mob have leaked to businesses with only a token First Nations stake. This closes that gap.

From 1 July 2026, IPP contracts require at least 51% Aboriginal or Torres Strait Islander ownership and control.

The procurement target rises to 3.25% — more government dollars that must flow to businesses like yours.

It rewards genuine ownership, not window dressing. If you're majority owned and run by mob, you're in a stronger position than ever. Make sure your structure is clearly documented so you can prove it.

Not on the Supply Nation database? Fix that this week. If you're not listed, you don't exist to them.

The $20,000 instant asset write-off is now permanent

This one matters for tradies, contractors, and any business buying tools, equipment, or vehicles.

From 1 July 2026, if your business turns over less than $10 million, you can immediately deduct any eligible asset under $20,000, permanently. No more waiting to see if the Government extends it each year.

Talk to your accountant about timing. Buying before 30 June versus after can make a real difference to your tax position this year.

Running your business through a family trust?

This one caught a lot of people off guard last night. It's confirmed and it's significant.

From 1 July 2028, discretionary trusts will face a 30% minimum tax on distributions. If your business is set up through a family or discretionary trust, this changes the tax equation significantly.

Capital gains tax: what's actually changing

The Government is overhauling capital gains tax. It's getting a lot of attention and if you own land, property, or are thinking about selling your business, you need to understand what's changing.

• Assets you already own are protected under existing rules for now

• Anything bought between now and 1 July 2027 still gets the current 50% tax discount when you sell

• From 1 July 2027, the 50% discount is replaced with an inflation-based model and a 30% minimum tax on real gains

  
  

The good news: the small business CGT concessions are unchanged. If you sell your business, the most valuable tax protections are still there.

If you're thinking about selling anything before 2027, talk to your accountant first.

More money in your pocket from July

Two tax changes confirmed last night that put real dollars back in your hands.

Income tax cut: From 1 July 2026, if your income is between $18,201 and $45,000, your tax rate drops from 16% to 15%. It drops again to 14% from 1 July 2027.

$1,000 instant work expense deduction: From 2026-27, you can deduct up to $1,000 in work-related expenses without needing receipts. Saves paperwork and saves tax.

Neither of these will change your life overnight. But if you're running lean and supporting family on top of running a business, every dollar you keep is a dollar that stays in your community.

Big investment in remote Communities and Native Title businesses

The Remote Jobs and Economic Development program received an additional $299 million to double new jobs from 3,000 to 6,000 by 2030. If you're an employer in a remote community, you may be able to apply for funding to pay wages and equipment to create local jobs. This is run through grant rounds, ask your NIAA office how to apply.

A new $75 million program is being rolled out to strengthen PBC's. If your community holds Native Title, this funding is designed to help PBCs work with government and industry to build real economic wealth from that. Watch for how applications open through the NIAA.

An additional $27.4 million to expand the Low-Cost Essentials Subsidy Scheme to all 225 remote stores across Australia. That's 30 essential items like food, nappies, soap at prices comparable to cities.

$1.1 million specifically for Cape and Torres Health Commissioning Ltd to continue culturally appropriate health services in Far North Queensland.

$18.9 million over four years to extend 13YARN's hours and add a text message service. Running a business is stressful. If you or someone in your family needs support, 13YARN is there. Call 13 92 76.

Five things worth doing right now

1. Check your IPP eligibility.

   The 51% ownership rule starts 1 July 2026. Weeks away. Get your structure documented and verified now.

   
   

2. Think about equipment purchases before 30 June.

   With the $20,000 instant write-off now permanent, anything you buy and have ready to use before 30 June comes off this year's tax bill. Talk to your accountant about what makes sense.

   
   

3. Know your numbers.

   What did you earn? What did it cost to run? What did you keep? If you can't answer those three questions quickly, that's the first thing to fix.

   
   

4. Sort out Payday Super now. 

   If you have staff, the quarterly super buffer disappears from 1 July 2026. Plan for it before it hits your cash flow.

   
   

5. See your accountant before 30 June.

   The trust tax changes, CGT rules, asset write-offs and tax cuts all have timing implications. What you do before 30 June and what you do after can produce very different outcomes.

Full budget papers at budget.gov.au. For First Nations-specific measures, check niaa.gov.au.

Jess Hale Tass

Hale Tass Business Solutions