SG&A Expenses in Australia: What They Are & Why They Matter (2026 Guide)

SG&A encompasses the costs that keep a business running but aren't directly tied to making products or delivering core services. Think of it as the financial backbone: everything from marketing campaigns to office rent, staff salaries (outside direct production), insurance, and software subscriptions falls under this umbrella.

• Selling: Advertising, sales commissions, promotional events, and shipping costs.

• General: Office rent, utilities, administrative wages, and corporate insurance.

• Administrative: Salaries for management, accounting, HR, IT support, and legal fees.

For example, a Melbourne-based e-commerce startup might list Facebook ad spend, warehouse lease payments, and customer service wages all as SG&A. These are essential, recurring, and can quickly add up.

Australian businesses are facing a unique climate in 2026. The ATO has introduced new record-keeping requirements for expense tracking, and there’s heightened scrutiny on discretionary spending amid tighter lending conditions and higher interest rates.

• Digital record-keeping: From July 2026, businesses must digitally store all SG&A receipts and invoices for five years, making cloud-based accounting software a must-have.

• Tax deductibility changes: The 2026-26 Federal Budget introduced caps on entertainment and travel expense deductions, affecting how businesses structure their SG&A budgets.

• Rising wage costs: With the Fair Work Commission’s 2026 wage increase, payroll within SG&A is a bigger slice of the pie for many SMEs.

These updates mean that what you record—and how you categorise it—can have a direct impact on your tax bill and your ability to secure finance.

Efficient SG&A management isn’t just about cutting costs; it’s about strategic allocation and oversight. Here’s how forward-thinking Australian businesses are responding in 2026:

• Embracing automation: AI-powered tools streamline invoice processing and approval workflows, reducing administrative headcount.

• Regular expense audits: Quarterly reviews of SG&A outlays help identify recurring waste—like underused software subscriptions or duplicative admin roles.

• Outsourcing non-core functions: Many firms now contract out payroll, HR, and even sales support to specialist providers, converting fixed costs into scalable variable expenses.

• Scenario planning: With economic uncertainty, businesses are running ‘what if’ forecasts to see how changes in SG&A affect their bottom line and funding options.

Take, for instance, an Australian SaaS company: By shifting from a full-time in-house marketing team to a flexible agency model, they reduced fixed SG&A while gaining access to specialised skills as needed.

In 2026, SG&A isn’t just a line item—it’s a lens for understanding business health, resilience, and agility. Whether you’re a startup founder or CFO at a mid-sized enterprise, tracking and optimising these expenses is essential for thriving in Australia’s competitive market.