Taxwise Individual News - May 2025
Download the full TaxWise Indivudual News May 2025
The May 2025 edition of TaxWise News for individuals provides key updates on personal and small business tax changes, compliance tips, legislative developments, and practical guidance for the 2024–25 tax year.
Key Topics Covered:
- Personal Income Tax Cuts:
Upcoming reductions in tax rates for individuals from 2026, impacting different income brackets. - Work-From-Home Deductions:
New ATO guidelines and fixed rate for claiming work-related expenses when working from home. - Election Proposals:
- 20% reduction on all student loans as of June 2025.
- New instant tax deduction for work expenses under $1,000 without receipts from July 2026.
- Small Business Instant Asset Write-Off:
$20,000 immediate write-off threshold extended to June 2025, with further extension proposed. - Sole Trader and Small Business Tax Tips:
ATO advice on managing business records, cash flow, GST, and payroll obligations. - Capital Gains Tax (CGT) Issues:
Common mistakes, ATO focus areas, and rules for claiming small business CGT concessions. - Financial Benchmarks and Reporting:
Updated small business financial benchmarks and reminders about proper reporting cycles. - Non-Commercial Losses:
Rules and common errors for individuals offsetting business losses against other income. - Division 7A and Private Companies:
Integrity rules for loans, benefits, and unpaid present entitlements between companies and shareholders; recent legal developments (Bendel case). - Contractor Income Reporting:
Importance of correctly including TPAR income on tax returns; ATO data-matching guidance for contractors. - Monthly GST Reporting:
ATO’s move to monthly GST reporting for non-compliant businesses and the benefits of voluntary monthly reporting. - Superannuation Scams:
Warnings against SMSF scams and fraud schemes; penalties for illegal arrangements. - Operation Protego & GST Fraud:
ATO-led investigations into GST fraud schemes and recent convictions as a deterrent. - Key Tax Dates:
Important upcoming deadlines for BAS, FBT, PAYG, SG, and other tax obligations for individuals and small businesses.