Tax time updates you need to know

Tax returns Geelong

With 1 July just around the corner, now is the time to check in on your tax-time readiness. Whether you’re lodging your own return or meeting with an accounting professional, being across the latest changes can help avoid costly mistakes and unnecessary delays.

What’s changing in 2025?

From 1 July 2025, interest charged by the ATO will no longer be deductible. This means:

• General Interest Charges (GIC) and Shortfall Interest Charges (SIC) you incur on or after this date can’t be claimed as a deduction
• Even if the debt relates to an earlier income year, the interest is still non-deductible
• However, charges incurred before 1 July 2025 are still deductible in your 2024–25 return

This change applies to individuals, businesses, and entities with a substituted accounting period (SAP). If you’re unsure what this means for your next return, our accounting team can help.

Your tax time checklist

Tick off the essentials to make sure you’re ready to lodge:

 1. Income statement

Your employer must finalise your income statement and mark it as “Tax Ready” by 14 July. Don’t lodge your return until this status is confirmed in your ATO portal—doing so early could result in needing to amend your return later.

2. Private health insurance

Most health funds provide your tax information directly to the ATO by the end of July, but it’s worth checking your records. You may be liable for the Medicare Levy Surcharge if you or your family didn’t hold appropriate cover for the full year.

3. Other income

Interest from bank accounts, dividends, and distributions from managed funds should be visible in your ATO pre-fill data. Make sure everything has been captured before you lodge.

4. Home office deductions

If you’ve worked from home during the year, you can claim running expenses. Choose between:

• Fixed rate method: 70 cents per hour worked from home (2024-25) (requires a record of hours worked)
• Actual cost method: Claim based on actual expenses and work-related usage (requires detailed documentation)

5. Work-related expenses

Uniforms, protective clothing, tools, subscriptions, and travel may all be deductible—provided you keep valid receipts and can show how the expense relates to your job.

6. Super contributions

Did you make any personal super contributions? You may be eligible for a tax deduction, but you’ll need to submit a Notice of Intent to Claim to your super fund before lodging.

7. Donations

Only donations to registered charities are tax-deductible. Keep receipts and ensure the charity has DGR (Deductible Gift Recipient) status.

8. Rental property income and expenses

If you own an investment property, gather all income and expenses, including mortgage interest, maintenance costs, property management fees, and depreciation reports.

9. Capital gains and losses

Sold shares, property, or crypto? You’ll need to calculate your capital gains or losses—even if the gain is exempt, it must be reported.

10. Small business owners

Make sure your books are in order:

• Take advantage of the $20,000 instant asset write-off by ensuring eligible assets are acquired and installed ready for use by 30 June.
• Finalise STP payroll by 14 July.
• Ensure all superannuation contributions are received by the employee’s fund before 30 June to be eligible for a tax deduction in the 2024–25 financial year. Super is only deductible in the year it is paid and received by the fund.
• Review any staff bonuses or director payments and ensure they’re recorded properly.
• Review your Accounts Receivables and Accounts Payables for accuracy and write off any bad debts in your Accounts Receivable.
• Complete a Stock Take as at 30^th June to ensure you have accurate Closing Stock on Hand/Work in Progress.

Tax returns Geelong with the Accounting experts at The Hrkac Group

If you need assistance with lodging your tax return or you have any questions about how to best prepare for tax time and maximise your return, The Hrkac Group team of accountants have the knowledge and are here to help make your life easier.

Get in touch and book your tax appointment with the Hrkac Group Accounting professionals today! Call us on (03) 5224 2366 or book an appointment online.

General Advice Warning: This information has been provided as general advice and does not take into account your individual objectives, financial situation or needs. Before acting on any information, you should consider the appropriateness of the information with regard to your personal circumstances and seek professional advice.
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