As the end of the financial year approaches, now is the perfect time to review recent tax updates and make the most of available opportunities. In this issue, we cover key changes, deadlines, and strategies to help you stay on top of your tax planning.

Instant Asset Write-Off Increased to $20,000 for 2024–25

After a long wait, the Government has officially passed legislation to increase the instant asset write-off threshold to $20,000 for the financial year ending 30 June 2025.

This means that businesses with an annual turnover of less than $10 million can generally claim an immediate tax deduction for eligible assets—such as plant and equipment—purchased during the 2025 financial year. To qualify, the asset must cost less than $20,000 and be first used or installed ready for use before 30 June 2025.

The $20,000 limit applies on a per asset basis, allowing small businesses to instantly write off multiple assets.

This change presents a valuable opportunity for small businesses to invest in essential equipment while benefiting from immediate tax relief.

If you have any questions about how this change may affect your business, please contact our office – we’re here to help.

The ATO’s updated small business benchmarking tool

The ATO has refreshed its small business benchmarks using data from the 2022–23 financial year. These benchmarks cover 100 industries and are designed to help small businesses compare key performance indicators—like turnover and expenses—against others in the same industry.

While the ATO doesn’t rely on these figures alone, businesses that fall outside the typical ranges may be more likely to attract closer scrutiny. The ATO uses data from business tax returns alongside industry benchmarks to identify potential tax risks.

Beyond compliance, the benchmarks are a valuable tool for improving your business. Comparing your performance to others in your industry, could highlight opportunities to reduce costs, improve efficiency, or boost profitability.

You can find out more by visiting the ATO website: Small business benchmarks | Australian Taxation Office

Sharing Economy Income

If you earn income through platforms like Airbnb, Stayz, Uber, Camplify, Airtasker or YouTube—including cash payments, appearance fees, or even gifts—it’s essential to report it in your tax return.

Since 1 July 2023, platforms offering ride-sourcing, taxi travel, and short-term accommodation (less than 90 days) have been required to report transactions to the ATO under the new Sharing Economy Reporting Regime. The ATO now uses this data for matching purposes to identify undeclared income.

From 1 July 2024, this reporting requirement extends to other sharing economy platforms as well. If you’ve earned income that hasn’t been declared, it’s best to act now—before the ATO finds it and applies penalties or interest.

ATO Interest charges no longer deductible from 1 July 2025

The government has announced changes to the tax law that will affect the deductibility of certain ATO interest charges. From 1 July 2025, businesses and individuals will no longer be able to claim income tax deductions for the General Interest Charge (GIC) or the Shortfall Interest Charge (SIC).

• GIC is imposed on unpaid tax liabilities and accrues daily.
• SIC is imposed on unpaid income tax shortfalls and is incurred in the year the ATO issues a notice of amended assessment.

This change applies to all GIC and SIC amounts incurred on or after 1 July 2025, regardless of whether the charges relate to earlier or later income years.

A key outcome of this change is that remitted GIC or SIC amounts incurred on or after 1 July 2025 will no longer need to be included as assessable income, since they were not deductible in the first place.

However, for any GIC or SIC incurred in the 2024–25 or earlier income years, the current rules still apply: if those amounts were deductible and are later remitted, the remitted amount must be included in assessable income in the year the remission occurs.

Upcoming Superannuation Guarantee Rate Increase – Effective 1 July 2025

From 1 July 2025, the Superannuation Guarantee (SG) rate will increase from 11.5% to 12%. Employers must calculate super contributions based on an employee’s ordinary time earnings at the time the salary or wages are paid, not when the work was performed.

For example:

• Wages paid in July 2025 (even if for work completed in June) will attract the new 12% SG rate.
• Wages paid in June 2025 will remain subject to the 11.5% SG rate, regardless of the super contribution payment deadline (28 July).

Important Reminder for Employers:
To ensure super contributions are tax deductible for the 2024–25 financial year, payments must be made before 30 June 2025.

If you have any questions about how this change may affect your business or payroll planning, please contact our office – we’re here to help.

Boost Your Super with a Downsizer Contribution

If you’re aged 55 or over, you may be eligible to contribute up to $300,000 from the sale of your home into your superannuation fund. This is known as a downsizer contribution, and it’s a great opportunity to boost your super without affecting your contribution caps.

Each individual can contribute up to $300,000, provided the amount does not exceed the total sale proceeds of the home. To qualify, you or your spouse must have owned the property for at least 10 years before the sale.

While downsizer contributions are classified as non-concessional, they don’t count towards your annual non-concessional contributions cap. However, they will count towards your transfer balance cap, which affects how much super can be moved into retirement phase and may also impact eligibility for the age pension.

There are specific eligibility criteria you’ll need to meet, so please get in touch with our office if you’d like to learn more or see if you qualify.