Introduction


In this newsletter, we look at some of the important updates for the 2025 financial year.
 
We have updated our Terms of Engagement which will apply to all work completed from 1 July 2025. You can find a copy of the updated terms here. A copy is also available on our website.

Please click on the following topic of interest to learn more:

Individuals Update
Business Update
Superannuation Update
Individuals Update



Tax Time 2025 - please take note of the following tips for your 2024/25 individual tax return: 

  1. You are welcome to send in your 2025 information whenever you like, however please note that we cannot start preparing individual tax returns until mid-July. This is a recommendation from the ATO and provides time for employers, banks, Centrelink, etc. to finalise their data with the ATO which is matched with your tax return.
    Where returns are lodged before this information is finalised, the ATO are likely to hold onto refunds or perform audits to correct any errors.

Did you know? We are able to access many of your details including payment summaries from your employer, interest on bank accounts, dividends and private health insurance information directly from the ATO.  This information becomes available to us progressively throughout July. 

Our standard fees to complete your 2025 individual tax return are as follows:
  • Tax Return (Individual) - $242
  • Tax Return (Couples) - $440
Please contact us if you have any additional schedules such as rental properties, capital gains or investment income and would like a fixed quote before we commence your return.  

Working from home fixed rate  If you're claiming work-from-home expenses using the fixed rate method, this rate has increased to 70c per hour for the 2024-25 income year. Reminder – You must keep appropriate records to be eligible for this claim method including a detailed log of actual hours worked and evidence that additional expenses were incurred. 

Cents Per Kilometre Rate Increase  If you're claiming work-related car expenses using the cents per kilometre method, this rate has increased to 88c per kilometre for the 2024-25 income year. The cents per kilometre rate is an all-inclusive rate and covers all of your eligible car expenses including registration, insurance, repairs, maintenance, fuel, and decline in value. You can't claim a deduction for these costs separately, elsewhere in your return.

Paid Parental Leave Superannuation Contribution 
From 1 July, the Australian Taxation Office (ATO) will pay superannuation on government funded Parental Leave Pay (known as the Paid Parental Leave Superannuation Contribution). Click here to find out more. 

NSW Land Tax Thresholds  
You must register for land tax if the value of your taxable land is above the land tax threshold of $1,075,000. Certain land (such as your principal place of residence) is exempt for land tax purposes. You can calculate the value of your taxable land using this link here. If you are concerned whether you may be required to be registered for land tax purposes, please contact our office so we can assist you further.

Business Update

$20,000 Instant Asset Write-off
The IAWO allows you to deduct the full cost of eligible assets which cost less than $20,000. The instant asset write-off (IAWO) threshold of $20,000 applies for the 2024-25 financial year however is currently not legislated for later financial years. 

Eligible assets must be first used or installed ready for use before 30 June 2025. The $20,000 threshold will apply on a per asset basis, so you can instantly write off multiple assets.

Increase to Super Guarantee
The super guarantee rate has increased from 11.5% to 12% from 1 July 2025. The rate used will depend on when your employee is paid, not when the income is earned – therefore the new rate will need to be applied to any payments made on or after 1 July 2025.

Minimum Wages Increase from 1 July 2025
The national minimum wage has increased by 3.75% to $24.10 per hour or $915.90 per week based on a 38-hour week for a full-time employee. For more details, and to ensure you are meeting your employer obligations, please click here.

Non-deductibility of ATO Interest Charges
Interest on overdue tax debts is no longer tax-deductible. This means any General Interest Charge (GIC) or Shortfall Interest Charge (SIC) applied to unpaid tax is now treated as a full business cost with no tax offset. For up to date information see here.

Right to disconnect will apply to small businesses
Eligible employees will have the right to refuse employer or third-party contact outside of working hours. This change starts on 26 August 2025 for small business employers. Click here to find out more.

NSW Payroll tax thresholds
The payroll tax rate of 5.45% and the annual payroll tax threshold of $1.2 million have not changed for the 2025-26 financial year. If you are concerned whether your business should be registered for payroll tax purposes, please contact our office so we can assist you further.

Superannuation Guarantee Payments for Employees
The ATO are now using Single Touch Payroll and superannuation data to increase their audit activity on employers who do not pay their employee’s Superannuation Guarantee or pay it late.

As a reminder, Superannuation must be paid on an employee’s Ordinary Time Earnings at least quarterly as follows:

Quarter Period Due Date
1 1 July – 30 September 28 October
2 1 October – 31 December 28 January
3 1January – 31 March 28 April
4 1 April – 30 June 28 July

Where employers do not pay the correct amount of superannuation guarantee or make a late payment for the quarter, a Superannuation Guarantee Charge (SGC) statement must be lodged. This statement self-assesses interest and penalties on the late payment and dates back to the start of the quarter, not the due date.

If you have any concerns, please contact us.

Superannuation Update

Change to Contribution Caps
There have been no changes to the existing contribution caps for the 2025/26 financial year. As a reminder, the current caps are as follows:

  • Concessional contribution cap $30,000
  • Non-Concessional (after tax) cap $120,000.

Carry-Forward Concessional Contributions
Did you know you may also be eligible to carry forward any unused cap space from the five prior financial years? If your super balance was below $500,000 on 30 June 2025, you may be able to contribute and claim a tax deduction for more than the $30,000 annual limit.

Contact us to find out more.

Better Targeted Superannuation Concessions
The Australian Government’s previously announced 30% concessional tax rate applied to earnings for superannuation balances above $3 million is proposed to commence from 1 July 2025. However, this measure is not yet law.
If your balance is over or approaching $3m, or you would just like to find out more about these proposed measures, please contact us.

Contact Us

For further details on any of the above, please contact us.



HC Partners Pty Ltd • Oscar Street, Umina Beach • 02 4341 9000 

info@hcpartners.com.au 

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