EOFY 2025: Key Tax & Superannuation Changes Every Accountant and Business Should Know
As the 2024–25 financial year comes to a close, the pressure is on for business owners, finance leaders, and tax practitioners to ensure compliance and readiness for the year ahead. With major reforms in tax rates, deductions, superannuation, and compliance obligations, staying ahead of these changes isn’t optional—it’s essential.
Here’s a practical wrap-up of the most important EOFY 2025 updates to help you and your clients prepare for a strong start to 2025–26.
🔻 Stage 3 Tax Cuts – Now in Effect
From 1 July 2024, revised Stage 3 tax cuts came into play:
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19% tax rate reduced to 16%
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32.5% reduced to 30%
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37% threshold lifted to $135,000 (from $120,000)
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45% threshold lifted to $190,000 (from $180,000)
Employers: Update PAYG withholding tables to reflect new rates from 1 July 2024.
⚠️ Note: Further tax cuts (to 15% and 14%) begin only from 1 July 2026 and 1 July 2027 respectively.
Work-Related Expense Updates
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Car Expenses: Cents per km rate stays at 88 cents/km for 2024–25 and 2025–26.
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Work From Home: Fixed rate increased from 67¢ to 70¢/hr. You must keep actual hours worked logs.
Business Deductions and Reporting
Instant Asset Write-Off (IAWO)
Extended: $20,000 threshold for small businesses (<$10M turnover) valid through 30 June 2025.
Announced but not yet legislated: Another 12-month extension to 30 June 2026.
Car Limits and LCT
Fuel-efficient car definition tightened: Must now consume ≤3.5L/100km (previously 7L/100km).
NFP Annual Returns
Non-charitable NFPs must lodge a Self-Review Return (SRR) for 2024–25 by 31 October 2025.
Division 7A & Trust Distributions
Division 7A Loans
Loans from companies to shareholders must be repaid or formalised before tax lodgment day.
Minimum Yearly Repayments (MYR) due by 30 June 2025.
Dividend payments must follow MT 2050 principles and proper director resolutions.
Unpaid Present Entitlements (UPE)
Following the Bendel case, UPEs may not be classified as loans under Division 7A. Awaiting High Court decision.
Section 100A (Reimbursement Agreements)
If triggered, the trustee pays 47% tax. ATO generally won’t apply 100A if Division 7A loans are compliant.
Superannuation Key Changes
✅ SG Rate Increase
12% SG rate applies from 1 July 2025 (up from 11.5%).
Deductibility
Submit the Notice of Intent at least one day before lodgment, and no later than 30/06/2025.
Contribution Caps
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Concessional cap: $30,000
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Non-concessional cap: $120,000
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Bring-forward rule: Up to $360,000 (if under 75 years old and within TSB limits)
Division 296 (Proposed Super Tax)
Earnings on super balances over $3M to be taxed an extra 15% (from 1 July 2025).
Concern: Taxing unrealised gains could create liquidity issues.
Other Super Measures
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Transfer balance cap: Increases to $2 million on 1 July 2025.
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Work test: Still applies for deductions for those aged 67–74.
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Spouse contributions offset: Up to $540 for low-income spouses.
Tax Administration & Compliance
myGovID → myID
The ATO’s digital ID system is now myID. No action needed unless prompted.
Interest Deductions Denied
From 1 July 2025, GIC and SIC are no longer tax deductible—even if linked to prior-year assessments.
Code of Professional Conduct Changes (TASA)
Small tax practices (≤100 staff) must comply with new ethical and governance obligations from 1 July 2025.
Final Thoughts: EOFY 2025 Action Checklist
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Update PAYG systems for new tax rates
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Validate Division 7A loan compliance
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Finalise super payments by 30 June
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Confirm eligibility for asset write-offs
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Lodge NFP SRR (if applicable)
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Review trust deed and prepare trustee resolutions
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Reassess contributions strategy under new super caps
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Prepare for my ID use in all ATO interactions
EOFY is more than just a deadline it’s an opportunity to strengthen compliance, optimise your tax position, and future-proof your structure for the next financial year.
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Credits
Sundaram Shanmugam, Smart SMSF Team
