Are you ready for 30 June 2025?

It’s almost Tax Time again. The 2025 financial year is coming to an end and it’s time for you to start thinking about completing your 2025 Income Tax Return.

In preparing for your 2025 Individual Income Tax Return, you should consider the following:

• The Australian Taxation Office (ATO) has clearly indicated across its various media channels that, this Tax Time, it will be focusing on record-keeping, work-related expenses, rental property income and deductions, sharing economy income; and capital gains from crypto assets, property, and shares

• The rate per kilometre for claiming Car expenses is 88 cents per kilometre for the 2025 financial year (up to a maximum of 5000 kilometres).

• Clothing tax deductions are only available for occupation-specific clothing, protective clothing, compulsory work uniforms and registered non-compulsory work uniforms (plus the cleaning of such clothing).

• The fixed rate Working from Home (WFH) method allows you to claim a deduction of 70 cents for each hour you worked from home. This includes electricity, gas, your phone costs, your internet costs, computer consumables and stationery (such as printer ink & paper). You can claim a separate deduction for the decline in value and repair of home office furniture and furnishings and of technology/computer equipment. To claim the fixed rate method you must keep a record of the total number of actual hours you WFH. Please note that WFH, deductions for “occupation” costs like rent, rates and mortgage interest are under the spotlight as they are not allowable unless you’re actually running a business from home.

• Rental property owners should only claim for the periods the property is rented out or is genuinely available for rent. This is particularly relevant for holiday homes. Periods of personal use cannot be claimed. Ensure that interest expenses are correctly apportioned where the investment property has some private use, the property is not genuinely available for rent or there is mixed use of borrowed funds.

• Ensure all Capital Gains on cryptocurrency, shares and properties (as well as other CGT assets) are correctly calculated and reported. Record keeping is essential.

• The 2025 financial year tax rates are as follows:

Taxable income($)	Tax Payable ($)
0 - 18,200	Nil
18,201 – 45,000	Nil + 16% of excess over 18,200
45,001 – 135,000	4,288 + 30% of excess over 45,000
135,001 – 190,000	31,288 + 37% of excess over 135,000
190,000 +	51,638 + 45% of excess over 190,000

The above table does not include the 2% Medicare levy.

• For those without private hospital insurance, the income threshold for the Medicare levy surcharge is $97,000 before the tax, for singles and $194,000 for families.

What you need to know – Superannuation

In preparing for your 2025 Income Tax Return, you should consider the following:

• If you have made tax deductible superannuation contributions in the 2025 financial year (maximum $30,000), please ensure that you have completed and submitted the ‘Intent to Claim’ form with your Super fund.

The key Super changes for the 2025-26 financial year

• From 1 July 2025, the Superannuation Guarantee (SG) rate increases from 11.5% to 12%.

• The maximum tax deductible superannuation contributions (Concessional Contribution Cap) will remain at $30,000.

• The maximum non-deductible superannuation contributions (Non-concessional Contribution Cap) will remain at $120,000.

• The Transfer balance cap increases from $1,900,000 to $2,000,000.

• The Capital Gains Tax cap increases from $1,780,000 to $1,865,000. This cap is a lifetime cap that applies to contributions made by a member for their benefit where the contribution is sourced (directly or indirectly) from a small business capital gains tax being either the 15-year concession or the retirement concession.

Get Ready

For your convenience, we have prepared a 2025 Individual Taxation Checklist. To assist in preparing your 2025 income tax return, you should to review this checklist.

Don't be too eager

The Australian Taxation Office (ATO) has recommended that taxpayers should not be too eager to complete their tax returns this year and ensure that all their information is accurate before lodging their 2025 income tax returns. According to the ATO, your employment income statement and other information collected by the ATO may not be finalised until late July 2025. Your 2025 income tax return should not be completed without this information. As a result of ATO recommendations and restrictions, we suggest that you make your appointment from 1 August 2025.

Time to meet

It's your choice. We will be conducting our appointments in-person, via Zoom or by telephone. Please click of the following link to book an appointment now.

2025 tax time appointment

At National Taxation, we're great listeners and we know that every single one of our clients are unique. We have a proven track record and are well equipped with the latest knowledge to ensure that your income tax return is prepared in the most professional manner, at a reasonable cost. Our objective is always to maximise your TAX REFUND. We look forward to being of service to you.

Disclaimer

The information presented is general in nature and not to be used, relied or acted upon without seeking professional advice to ensure that the information appropriate for your individual circumstances. National Taxation accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. www.nationaltaxation.com.au ABN 63 665 545 130.