Upcoming Tax and Superannuation Changes: What Business Owners Need to Know
We know that keeping up with tax and superannuation changes can feel like a moving target. To make things easier, we’ve outlined the key updates coming your way and what they could mean for your business.
ATO Interest Charges No Longer Tax-Deductible
Starting 1 July 2025, interest on overdue tax debts, including the General Interest Charge (GIC), will not be tax-deductible. This change means that any interest charged by the Australian Taxation Office on unpaid tax will be treated as a full business cost, without any tax offset. We recommend reviewing your payment arrangements now to avoid unnecessary interest expenses in the future.
Work From Home Deduction Update
For the 2024–25 financial year, the Australian Taxation Office has increased the fixed rate for work-from-home deductions to 70 cents per hour, an increase from the previous rate of 67 cents. This rate covers expenses such as electricity, internet, and phone usage. To claim this deduction, you must keep accurate records of the hours you work from home.
Superannuation Rates and Thresholds for 2025–26
The Superannuation Guarantee rate will increase to 12% on 1 July 2025. This is the final scheduled increase under current legislation and is designed to help employees grow their retirement savings.
The concessional contributions cap remains at $30,000 per year. This cap applies to employer Superannuation Guarantee contributions, salary sacrifice contributions, and personal contributions that are claimed as tax deductions. If your total superannuation balance is less than five hundred thousand dollars at 30 June 2025, you may carry forward any unused concessional cap amounts from the previous five years. This can be a valuable tool for tax planning.
The non-concessional contributions cap remains at $120,000 per year. If you are under seventy-five years of age, you may be eligible to bring forward up to three years’ worth of contributions, allowing a maximum of three hundred and sixty thousand dollars in a single year. However, if your total superannuation balance is two million dollars or more at 30 June 2025, your non-concessional contributions cap will be nil for the 2025–26 financial year.
From 1 July 2025, the general transfer balance cap will increase from $1.9 million to $2 million. This cap limits the amount that can be transferred into the tax-free retirement phase.
Other Changes: New Professional Standards for Tax Agents
Recent changes to the professional standards for tax agents may affect the way we work with you. If you would like to understand what these updates mean for you as a client, we have prepared a summary of the new Tax Agent Code of Professional Conduct explaining the key changes coming into effect from 1 July 2025 and how they are designed to protect your interests and strengthen trust in our services. Find out more here.
How Accounting Heart Can Help
If you have questions about these changes or want to discuss how they may affect your business, please contact us. We are committed to providing practical advice and support, so you can make informed financial decisions with confidence.