As the new financial year begins, chartered accountant GAIL FREEMAN underlines some of the changes that could impact you and your business.

Here are some of the headline changes the new financial year ushered in:

• From July 1, the superannuation guarantee rate increased to 12 per cent. If you pay your super quarterly and are making a payment on or before July 28, the rate to use is 11.5 per cent and the increase is only necessary for the payment that you make in October and going forward.

If you pay late, you are subject to the super guarantee charge, which includes interest and an administration component. It is also not tax-deductible.

• From July 1, 2026, super guarantee payments will have to be made at the same time as you prepare your payroll. Many payroll systems now include this option so you can make payments now before it becomes a requirement.

• The national minimum wage has increased by 3.5 per cent from the first full pay period on or after July 1. It is now $24.95 an hour or $948 a week for a 38-hour week.

Please make sure you’re paying your employees at the correct rate and that your payroll program has updated the superannuation rate to 12 per cent. There has been no change to the income tax rates. The next rate cut will apply from July 1, 2026.

• For the many people working from home, the good news is that the fixed rate you can claim has increased to 70 cents an hour from July 1, 2024. That means the rate to include in your 2025 tax return is 70 cents an hour.

• If you are a sole trader or a partner in a partnership or an individual claiming your car on the cents-per-kilometre method, the good news is that the set rate has increased to 88 cents a kilometre from July 1, 2024. So when you are lodging your 2025 tax return using the set-rate method, the rate to use is 88 cents a kilometre, this rate does not apply to fully electric cars.

This rate is limited to 5000 kilometres. Even if you travel more for work purposes, remembering that home-to-work travel cannot be claimed except under special circumstances, you can elect to only claim 5000 kilometres at the per-kilometre rate. You do not need a logbook, but if asked, you must substantiate how you arrived at the number of kilometres claimed.

• The ATO has again advised taxpayers not to lodge tax returns until late July when most information is received.

If your single touch payroll does not say “finalised” go to your employer and request that the payroll be finalised.

I have seen situations where an employer has changed payroll systems during the year and so two income statements were issued and only one was finalised. If this happens to you, talk to your employer and clarify which one is correct.

If you lodge too early, you run the risk of not all income being included. You will then have to lodge an amended return and you may end up with penalties. If you have invested in trusts, the trust distributions that you receive in August and September will probably have to be included in your return for the year ended June 30, 2025.

If you need help on any of the changes or any other tax-related matter contact the experts at Gail Freeman & Co Pty Ltd on
02 6295 2844, email [email protected] or visit gailfreeman.com.au

Disclaimer
This column contains general advice, please do not rely on it. If you require specific advice on this topic please contact Gail Freeman or your professional adviser. Authorised Representative of Lifespan Financial Planning Pty Ltd AFS Lic No. 229892.

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