April 2025

As the 2024–25 financial year heads into its final quarter, the ATO has released several updates relevant to small business owners and individual taxpayers. Here's what you need to know this week:

1. Key Lodgement & Payment Deadlines

• 21 April 2025 

  • Due to lodge and pay the March 2025 monthly BAS.

  • Also the due date for Quarter 3 PAYG instalments for companies with head entity status.

• 28 April 2025 – Lodgement and payment deadline for:

  • Quarter 3 activity statements (if lodging by paper)

  • PAYG instalment notices (Forms R, S, or T)

  • Superannuation Guarantee (SG) contributions for Quarter 3 – must be received by employee funds by this date.

    Tip: Avoid late payments to sidestep penalties and loss of SG tax deductions.

    
    

2. FBT Exemption Changes – Electric Vehicles

From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) are no longer eligible for the FBT electric car exemption. However, if the vehicle was used before 1 April 2025 under a binding commitment (like a novated lease), the exemption may continue until the agreement ends or is modified. This is relevant if you provide or salary-package vehicles for employees - or even for yourself as a director/shareholder.

3. PAYG Withholding Cycle Changes for Larger Withholders

If your business withholds more than $1 million annually, the ATO may reclassify you as a large withholder starting 1 July 2025. This would require electronic payments within 6-8 days of withholding. Notifications are being sent now - keep an eye on your ATO mail and speak with your tax adviser if you're affected.

4. ATO Shifts Non-Compliant Small Businesses to Monthly GST

The ATO has identified approximately 3,500 small businesses with poor lodgement/payment history. These businesses will be moved to monthly GST reporting from 1 April 2025 to improve compliance and cash flow monitoring.

If you're affected, you and your tax agent should have received a letter or portal notification. Monthly GST reporting can be a hassle - but it also gives you more frequent insights into your business cash flow.

5. GDP Uplift Factor Announced for PAYG/GST Instalments

The ATO has confirmed the GDP adjustment factor to be applied to 2025-26 PAYG and GST instalments. This factor is used to calculate instalments for those who pay based on the instalment rate method. Software providers and accounting platforms will update automatically - but it’s worth checking in with your adviser if your cash flow feels tight.

Final Reminder: FBT Year Ended 31 March 2025

If you provide fringe benefits, the FBT return is due 21 May 2025 (or 25 June 2025 if lodged via a tax agent).

Don’t forget to:

• Check car logbooks and odometer readings

• Review employee benefits (parking, meals, loans, etc.)

• Ensure declarations are signed where required

  
  

If you need help understanding how any of these updates affect you or your business, feel free to reach out to our team at Apex Tax Advisory.