Happy New Financial Year!
The start of a new financial year following a federal election brings a range of changes. Below are key tax updates and considerations for the year ahead, along with important upcoming deadlines to keep in mind.
STP Finalisation Declarations Due by 14 July 2025
A reminder that Single Touch Payroll (STP) finalisation declarations for the 2024–25 financial year must be lodged by 14 July 2025. If you are unable to finalise by this date, a deferral application will be required. Our in-house bookkeeping team is available to assist with STP finalisations if needed – please contact us for support.
Superannuation Guarantee Increasing to 12%
Superannuation Guarantee (SG) rate will increase from 11.5% to 12%. To ensure compliance:
- Update your payroll systems to reflect the new SG rate. While most systems should adjust automatically, it’s important to verify this.
- Review employment agreements to determine whether super is paid on top of base salary or included in a total remuneration package. This will impact take-home pay.
- Notify employees of the change and how it may affect their pay structure.
ATO Interest Charges No Longer Deductible
From 1 July 2025, taxpayers will not longer be able to claim a tax deduction for General Interest Charge (GIC) or Shortfall Interest Charge (SIC) on outstanding tax liabilities. These interest costs will become a fully out-of-pocket expenses, even if the underlying debt relates to a prior income year. Recommended actions:
- Aim to pay ATO liabilities on time to avoid non-deductible interest and penalties.
- If full payment isn’t possible, request a payment extension (we can assist with this).
- Consider alternative finance options that may carry deductible interest.
- Engage with us early to plan for and manage tax payments effectively.
ATO Impersonation Scams – Stay Vigilant
There has been a 300% increase in ATO impersonation email scams compared to this time last year. Scammers often target taxpayers around EOFY. Stay safe by:
- Accessing your MyGov account only through the official ATO or MyGov websites.
- Never clicking on email links to log in.
- Verifying any phone calls claiming to be from the ATO.
- Using only official ATO payment details found in your MyGov account.
- Knowing the ATO will never request cryptocurrency payments.
- Not sending your TFN or credit card details via email or SMS.
- Strengthening your MyGov ID security settings.
Proposed Changes to Study and Training Loan Repayments
The government has proposed changes to HELP and other study/training loans:
- The minimum repayment threshold will increase to $67,000 (up from $54,435).
- Compulsory repayments will apply only to income earned above the threshold, not total income.
- A 20% reduction will apply to outstanding study and training loan balances as at 1 June 2025, subject to legislation being passed.
Please note: These changes are not yet law. We will keep you informed as updates occur.
Update on the Proposed $3 Million Super Balance Tax
Legislation introducing an additional 15% tax on earnings from superannuation balances over $3 million has passed the House of Representatives and is currently before the Senate. Its final form and commencement remain uncertain. We are monitoring developments and will provide updates as they become available.
ATO Payment Arrangements – Avoiding Defaults
If entering into an ATO payment plan:
- Ensure your bank account supports direct debit.
- Confirm that the instalment amount fits within your daily transaction limit
Failure to meet these conditions can result in plan defaults, interest charges, and penalties. Please contact us for assistance in setting up or reviewing your payment plan.
TPAR Paper Lodgements to be Discontinued
From 28 August 2025, the ATO will no longer accept paper lodgments of Taxable Payments Annual Reports (TPAR). Reports must be submitted through SBR-enabled software or via Online Services for Business. Make sure your systems are updated to comply with this change.
If you have any questions about these strategies please do not hesitate to reach out to us on enquiries@chcpas.com.au or (03) 9431 1420. We appreciate your trust in our services and look forward to continuing to support you.
