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Tax time can be overwhelming, but staying ahead of the latest updates can make all the difference. Whether you're an individual or a business owner, understanding what’s new this financial year will help you stay compliant, avoid penalties, and make the most of your return.
This guide covers key 2025 tax changes, answers common questions, and shares practical tips to help you prepare for a smooth tax season.
Understanding the 2025 Tax Season
The Australian tax season runs from 1 July 2024 to 30 June 2025. Lodgement deadlines depend on how you lodge:
When is my tax return due in 2025?
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If you lodge yourself, the cut-off is 31 October 2025.
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If you use a registered tax agent, you may receive an extension (depending on when you engage them).
Businesses also have varying obligations throughout the year, including:
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BAS lodgements (quarterly or monthly)
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PAYG withholding and instalments
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Superannuation Guarantee payments for employees
Keeping track of these deadlines helps avoid penalties and ensures you're not leaving money on the table.
Why Planning Ahead Matters
What are the risks of leaving your tax return until the last minute?
Late lodgement can lead to rushed decisions, missed deductions, and ATO penalties. Starting early allows you to:
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Organise receipts and records
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Track work and business expenses
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Make strategic contributions (e.g. to super)
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Adjust your PAYG withholding if needed
Tax laws often change from year to year. Reviewing your financial situation now means you're not caught out later.
What’s Changing in the 2024–25 Financial Year?
Several updates to tax rates, superannuation, and asset deductions are in effect this year. Here’s what you need to know:
1. Updated Individual Tax Brackets
From 1 July 2024, Stage 3 tax cuts have been revised. These changes affect most working Australians:
| Taxable Income | Tax Rate |
|---|---|
| $0 – $18,200 | Tax-free |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| $190,001+ | 45% |
Who benefits the most?
Those earning between $45,000 and $135,000 will see a lower marginal tax rate compared to previous years.
2. Superannuation Guarantee Increase
From 1 July 2024, the Superannuation Guarantee (SG) rate increases from 11% to 11.5%. It will rise again to 12% from 1 July 2025.
Do I need to update my payroll?
Yes. Employers must ensure payroll systems reflect the new SG rate to remain compliant.
Does this apply in all states?
Yes. The SG rate is set under federal law and applies across Australia.
3. Instant Asset Write-Off for Small Businesses
The Temporary Full Expensing scheme ended on 30 June 2023.
What’s available now?
From 1 July 2023 to 30 June 2025, small businesses (turnover under $10 million) can immediately deduct the full cost of eligible assets under $20,000, if installed and ready for use during this period.
Can I claim multiple assets?
Yes, provided each individual asset is below the $20,000 threshold.
Maximising Your 2025 Tax Return
Knowing what deductions you're entitled to can make a big difference to your refund.
What can individuals claim?
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Work-related expenses (tools, uniforms, training)
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Home office costs (claimable via the 67c/hour fixed rate method or actual method)
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Professional memberships and subscriptions
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Charitable donations to registered charities over $2
What about business owners?
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Marketing and advertising costs
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Business travel
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Depreciable assets under $20,000
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Accounting or professional advice
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Software and digital tools used for operations
How should I keep records?
Use a digital filing system to store:
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Receipts and tax invoices
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Logbooks (if claiming vehicle expenses)
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Statements for work-related use of internet, phone, or energy
Compliance and Reporting Requirements
The ATO is increasing its focus on accuracy and compliance. That means tighter checks on:
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Work-from-home claims
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Rental property deductions
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Side hustle income (e.g. freelancing, gig economy)
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Crypto trading and investments
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Super contributions and missed payments
What records does the ATO expect?
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Income: payslips, invoices, dividends, bank statements
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Deductions: itemised receipts, diary entries for work hours
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Super: payroll reports, payment confirmations
Lodging Your Tax Return in 2025
You can lodge your return through:
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The ATO’s myGov portal – best for simple tax affairs
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A registered tax agent – ideal for complex returns or if you want to maximise deductions
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Paper lodgement – slower and less common
Should I use a tax agent?
If you have multiple income sources, investments, or business activities, working with a tax agent like Latitude Accountants can help you avoid costly errors and unlock more deductions.
Common Tax Mistakes to Avoid
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Forgetting secondary income (e.g. Uber, Airbnb, share dividends)
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Over-claiming personal expenses as work-related
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Missing super payment deadlines for staff
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Not updating PAYG withholding after salary changes
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Lodging late without a valid reason
FAQs About Tax Time in 2025
Can I still claim COVID-related expenses?
Generally no. The ATO has phased out most pandemic-related deductions unless clearly work-related.
What happens if I make a mistake on my return?
You can amend your tax return through myGov or via your tax agent. Acting quickly reduces the risk of penalties.
How long should I keep my records?
At least five years from the date you lodge.
Can I claim interest on a car loan if I use it for business?
Only the business-use percentage of interest and running costs is claimable, and you’ll need a valid logbook.
Final Thoughts
Tax time doesn’t need to be stressful. With the right information and a proactive approach, you can take advantage of every deduction you're entitled to and avoid the ATO’s radar.
If you're unsure about a claim, need help with PAYG or GST, or want tailored advice for your business, our expert team is here to help.
Ready to work with the professionals
At Latitude Accountants, we help individuals and businesses across Australia stay compliant, save time, and maximise their return. Whether you're a sole trader, property investor, or employer, we provide clear, reliable advice grounded in current tax laws.
Need expert help?
Get in touch today to book your tax appointment or speak to an accountant who understands your situation.
📞 Contact Latitude Accountants
📧 info@latitudeaccountants.com.au
🌐 www.latitudeaccountants.com.au
Disclaimer
The information provided in this article is general in nature and does not constitute personal tax, legal or financial advice. It is based on legislation and guidance current as at the 2024–25 financial year and may be subject to change. Readers should consult a registered tax agent or accountant, such as Latitude Accountants, for advice tailored to their individual circumstances.
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