June 2025

As we approach the end of the financial year, there are a few key ATO updates and reminders worth noting for both small business owners and individuals.

Key Dates to Keep in Mind

5 June 2025 - Final lodgement date for 2023–24 income tax returns for clients with a 15 May deadline (using a registered agent). Any tax payable must also be paid by this date to avoid penalties.

25 June 2025 - If your business provides fringe benefits, the 2025 FBT annual return is due for electronic lodgement and payment.

30 June 2025 - End of financial year. Key actions include:

• Making super guarantee contributions to claim a deduction for 2024–25.

• Finalising trust resolutions or dividend declarations.

• Writing off bad debts and reviewing inventory for obsolete stock.

• Making personal super contributions (make sure they’re received by your fund before 30 June).

ATO Focus Areas This Tax Time

Work-Related Deductions

The ATO is closely reviewing work-from-home claims. The shortcut method is gone, so you’ll need either actual costs or use the fixed rate, backed by a diary or logbook.

Second Jobs & Tax-Free Threshold

If you’ve picked up a second job, make sure only one employer is applying the tax-free threshold. The ATO is targeting under-taxation across multiple income streams.

Rental Property Deductions

They're paying close attention to claims for repairs vs improvements. Repairs are deductible; improvements need to be capitalised.

Capital Gains Behaviour

The ATO is cracking down on “wash sales” — that’s where someone sells and quickly repurchases the same asset to crystalise a tax loss. This is considered tax avoidance.

For Small Business Owners

$20,000 Instant Asset Write-Off

Small businesses (turnover under $10M) can immediately deduct the business portion of eligible assets costing less than $20,000, as long as the asset is first used or installed ready for use by 30 June 2025.

Fuel Tax Credits

Rates from 3 Feb to 30 June 2025 are:

• 20.3c/L for heavy vehicles on public roads

• 50.8c/L for other business uses

ATO Debt Collection

The ATO is becoming stricter with outstanding tax debts. Payment plans are being more closely assessed, so it’s important to act early if you're struggling with repayments.

Superannuation Updates

Voluntary Contributions

To claim a personal super contribution deduction for this financial year, the fund must receive the contribution by 30 June (not just be transferred). If you’re using a clearing house, check their processing cut-offs (many close mid-June).

Division 296 Super Tax (Coming Soon)

From 1 July 2025, there’ll be an extra 15% tax on earnings from super balances over $3 million. This won’t affect most people, but worth keeping an eye on if you're nearing that level.

Let us know if you need help getting organised before 30 June. We're here to make tax time easier and ensure everything's in place for a strong start to the new financial year.