Federal Budget 2026: What It Means for Australian Dental Practices

The 2026-27 Federal Budget, handed down in May, includes several measures that directly and indirectly affect dental practices across Australia. Here's what you need to know.

Small Business Tax Changes

The instant asset write-off has been extended for another year, allowing practices to claim an immediate deduction for eligible assets costing less than $20,000. This covers dental chairs, imaging equipment, practice management software, and fit-out improvements.

For practices planning capital expenditure, this is a significant incentive to bring forward purchases before June 30, 2027.

Medicare and Dental

While the Budget did not include the long-anticipated expansion of Medicare into dental, the government has allocated additional funding for the Child Dental Benefits Schedule (CDBS). The CDBS cap has been indexed for the first time in a decade, rising to $1,052 per child over a two-year period.

Practices that see a high volume of CDBS patients should review their fee structures and ensure their claiming processes are up to date.

Digital Health Investment

The Budget includes $842 million over four years for digital health infrastructure, including enhancements to My Health Record and expanded telehealth arrangements.

For dental practices, this means increasing patient expectation around digital-first experiences — online bookings, digital forms, and integrated health records. Practices that invest in these capabilities will be better positioned as patient expectations evolve.

Workforce and Training

Additional funding has been allocated to vocational education, including dental assisting and oral health therapy training. This is positive news for a sector that has faced persistent staffing shortages.

Practices may find it easier to recruit qualified staff as these training investments flow through, though the impact will take time to materialise.

ATO Compliance Focus

The ATO has received additional funding for compliance activities, with a specific focus on the gig economy and small business tax reporting. Dental practices should ensure their payroll, superannuation, and contractor arrangements are fully compliant.

The move to payday superannuation, which requires employers to pay super at the same time as wages, is progressing. Practices should confirm their payroll systems are ready for this change.

What Practices Should Do Now

Review your equipment plans — consider bringing forward purchases to take advantage of the instant asset write-off
Update your CDBS claiming processes — the indexed cap means changes to how you manage child dental benefits
Invest in digital infrastructure — patient expectations are shifting, and the government is backing digital health
Check your compliance — the ATO has more resources for enforcement; make sure payroll and super are in order

Need Help Navigating the Changes?

The regulatory landscape for Australian dental practices is constantly evolving. Consuldent helps practice owners stay on top of changes and implement practical responses.