- June 1, 2025
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It’s that time of year where we all need to think about doing our tax return and get ready to pay some taxes! There have been some key tax changes this financial year that could impact your operations, cash flow, and compliance obligations. From superannuation updates to GST reporting shifts, these changes require careful planning to avoid unexpected costs and ensure smooth, trouble free financial management.
Superannuation Guarantee Increase
Starting 1 July 2025, the superannuation guarantee (SG) rate will rise from 11.5% to 12%. While this might seem like a small increase, it could add up for businesses with multiple employees. Employers need to review payroll budgets and factor in the additional costs to avoid last-minute financial strain.
You can read more about this on the ATO Super Guarantee page.
Instant Asset Write-Off Extension
The $20,000 instant asset write-off has been extended for the 2024–25 financial year. Businesses with an annual turnover under $10 million can immediately deduct the cost of eligible assets under this scheme. The $20,000 limit is also still per asset. That means multiple purchases still qualify. Keep in mind that you should always make sure that any investments align with your long-term business needs rather than doing it just for the tax benefits.
Learn more on the ATO Instant Asset Write-Off page.
Increased ATO Scrutiny
The Australian Taxation Office (ATO) has announced an increased focus on small business tax compliance, particularly in areas such as work-related deductions, cash-in-hand payments, and undeclared income . Businesses need to ensure accurate and up-to-date reporting. Cloud-based accounting software will help you to streamline compliance processes.
You can read about Our new focus areas for small business.
Monthly GST Reporting for Non-Compliant Businesses
From 1 April 2025, the ATO will require certain businesses to move from quarterly to monthly GST reporting if they have a history of late lodgments, unpaid GST debts, or incorrect reporting. This shift aims to improve compliance (in other words, the ATO is making sure it gets paid) but it may introduce cash flow challenges for affected businesses. If your business is flagged for monthly reporting, adjusting accounting processes and forecasting GST liabilities will be crucial.
The ATO outlines the requirements on its Monthly GST reporting.
Payday Super Reform (Coming in 2026)
The Payday Super reform will not actually come into effect until 1 July 2026 and is still undergoing consultation (so the details may change). But it is something to think about soon. This change will require businesses to pay employees’ super at the same time as wages rather than quarterly. This is designed to improve retirement savings and it will require businesses to adjust payroll systems and cash flow strategies well in advance.
The ATO is still working on this reform and updates can be found on the Payday superannuation page.
Removal of Tax Deductions on Overdue ATO Debt Interest
From 1 July 2025, businesses will no longer be able to claim tax deductions on interest charged for overdue ATO debts. This change reinforces the importance of timely tax payments to avoid unnecessary financial penalties.
More information is available on the Denying deductions for ATO interest charges on the ATO website.
How SMEs Can Prepare
- Review payroll budgets to accommodate the superannuation increase.
- Plan asset purchases strategically to maximise tax benefits under the instant asset write-off.
- Ensure GST compliance to avoid being moved to monthly reporting.
- Be prepared if you think you may end up on monthly reporting.
- Prepare for Payday Super by adjusting payroll systems ahead of time.
- Avoid overdue tax debts to prevent additional financial strain.
Stay informed and plan ahead for these tax changes and any others that may be introduced for the next financial year or the one after that. Consulting a tax professional can provide tailored strategies to optimise compliance and financial planning.