1. Interest on ATO Tax Debt No Longer Deductible
As of 1 July 2025, interest charged by the ATO on unpaid tax debts—such as General Interest Charge (GIC) and Shortfall Interest Charge (SIC)—will no longer be taxdeductible
Why it matters: Small businesses, in particular will find carrying tax debt more expensive. It’s more important than ever to lodge and pay tax on time, or arrange ATO payment plans. To set up a payment plan, your accountant Melbourne will be able to assist and can also help you manage your tax debts and assist with securing finance if required
2. Superannuation Guarantee (SG) Rate Rises to 12%
From 1 July 2025, employers must contribute 12% of ordinary earnings to superannuation—up from 11.5%
3. Minimum Wage Boost
The national minimum wage increases by 3.5%, reaching $24.95/hour from 1 July 2025. This does not include superannuation.
4. Foreign Resident Property Sale Withholding & Data-Matching Expansion
- Withholding tax on property sales by foreign residents jumped from 12.5% to 15%, and the previous $750,000 threshold has been removed—effective 1 January 2025. This means that when a foreign resident sells a property, 15% of the sale price must be withheld by the foreign resident’s conveyancer and sent to the ATO.
- The ATO is also expanding its rental bond data-matching program to improve detection of undeclared rental income. Here the ATO will expect those properties which have a rental bond in place to be declared in a tax return as an investment property. Please contact your accountant Melbourne with any questions.
5. Superannuation Transfer Balance Cap Rises
From 1 July 2025, the general Transfer Balance Cap increases from $1.9 million to $2 million, due to CPI indexation.
Why it matters: This affords retirees more room for tax-effective super contributions or retirement income streams.
6. Cessation of Paper TPAR Lodgements
Starting 28 August 2025, Taxable Payments Annual Reports (TPARs) must be lodged electronically through SBR-enabled software or Online Services for Business systems to stay compliant. Best to contact a service provider providing accounting services who can help you with the lodgement of your TPAR.
7. Enhanced ATO Compliance & Tax Practitioner Enforcement
- The ATO will receive nearly $1 billion more over coming years to expand compliance efforts. The Four Corners program in June/July 2025 shed some light on the shortcomings of the ATO’s procedures – and as a consequence more money will be spent by the ATO on compliance.
- The Tax Practitioners Board (TPB) will gain stronger powers—including decade-long bans, infringement notices, and criminal penalties for unregistered or non-compliant tax practitioners. This means that anyone offering you accounting services must be registered with the TPB.
8. HELP Debt Relief & Higher Repayment Threshold
Millions of Australians with HELP, VET, or apprenticeship loans will benefit from a 20% debt reduction, automatically applied by the ATO, retroactively to 1 June 2025
Plus, the repayment threshold will increase from $54,000 to $67,000 from 1 July 2026.
Date | Change | Impact |
1 July 2025 | ATO interest non-deductible | More costly tax debts |
1 July 2025 | SG rises to 12% | Payroll and cashflow effects |
1 July 2025 | Minimum wage increases | Payroll compliance |
1 Jan 2025 | Foreign CGT withholding 15% + no threshold | Property transactions |
1 July 2025 | TBC increases to $2 m | Retirement income planning |
28 Aug 2025 | Paper TPAR lodgements stop | Digital reporting mandatory |
Ongoing | ATO and TPB ramp up enforcement | Greater compliance scrutiny |
2025–26 | HELP debt reduction + repayment threshold up | Borrowers benefit |
If you need assistance to understand any of these changes, please do not hesitate to contact your accountant Melbourne or Nobel Thomas. We’re only a phone call away.
