FY2024–25 | Australia | Personal & Business
The end of the financial year is here — and that means it is time to start preparing your 2025 tax return. Whether you are an individual employee, a sole trader, or a small business owner, taking the time to prepare properly can save you stress, protect you from ATO scrutiny, and — more often than not — put more money back in your pocket.
Here is everything you need to think about before you sit down to lodge.
1. Know Your Lodgement Deadline
The self-lodgement deadline for FY2024–25 is Friday 31 October 2025. If you use a registered tax agent, you have until 15 May 2026 — provided you are on their client list before 31 October 2025.
Don’t rush. The ATO’s pre-fill data — covering employer income statements, bank interest, dividends, private health insurance, and Centrelink payments — is not finalised until late July. Lodging too early risks leaving income out and triggers an amendment you will need to fix later.
2. What’s New for 2024–25: Key Changes You Need to Know
Stage 3 Tax Cuts Now in Effect for the First Time
From 1 July 2024, the redesigned Stage 3 tax cuts began. The 19% tax rate dropped to 16%, and the 32.5% bracket was absorbed into a 30% band. These are the most significant personal income tax rate reductions in years, and almost every Australian taxpayer will benefit. If you have PAYG instalments, check whether they reflect the new rates — you may have overpaid throughout the year.
Super Guarantee Increased to 11.5%
The Superannuation Guarantee rate rose from 11% to 11.5% from 1 July 2024. Employers were required to contribute 11.5% of eligible employees’ ordinary time earnings to super. If you are an employer, confirm your payroll was updated correctly. Employees should verify payslips reflect the correct rate throughout the year.
GIC and SIC Charges Still Deductible in 2024–25
Unlike future years, General Interest Charges (GIC) and Shortfall Interest Charges (SIC) incurred during FY2024–25 are still deductible. If you had a tax debt and incurred these charges before 30 June 2025, include the deduction in your return — this deductibility ends from 1 July 2025.
Work From Home Fixed Rate Increased to 70 Cents Per Hour
The ATO’s revised fixed rate for working from home claims rose to 70 cents per hour for FY2024–25, up from 67 cents in the prior two years. This covers electricity, gas, phone, internet, stationery, and computer consumables.
3. Personal Tax Return: What to Check
Income — Report Everything
Collect documentation for all income received between 1 July 2024 and 30 June 2025:
- Wages, salary, and allowances (from your income statement via myGov)
- Interest from bank accounts and term deposits
- Dividends from shares — including franking credits
- Rental income (including Airbnb and short-stay platforms)
- Capital gains from shares, crypto, or property sold during the year
- Government payments: JobSeeker, Youth Allowance, Centrelink
- Foreign income
- Gig economy income: Uber, Deliveroo, Airtasker, freelancing platforms
Work-Related Deductions — The Three Golden Rules
Every claim must satisfy all three: you paid for it yourself (unreimbursed), it directly relates to earning your income, and you have written evidence. If total work-related expenses exceed $300, receipts are mandatory for the whole amount.
Common claimable work expenses include:
- Tools, equipment, and technology used for work
- Professional memberships, subscriptions, and union fees
- Occupation-specific uniforms, protective clothing, and safety gear
- Laundry of eligible work clothing: $1 per load (work-only) or 50 cents per mixed load
- Work-related self-education and training directly linked to your current role
- Home office expenses
Working From Home — 70 Cents Per Hour
For FY2024–25, the fixed rate is 70 cents per hour worked from home. You don’t need a dedicated home office — just a genuine record of hours (diary, timesheet, or calendar entries). The rate covers electricity, internet, phone, stationery, and consumables.
You can also claim separately on top of this rate: depreciation on office furniture and technology, and repairs to work-related equipment.
The actual cost method is the alternative — calculate real additional expenses by proportion. More paperwork, but potentially a larger deduction if your costs are high.
Vehicle and Travel Claims
The cents per kilometre rate for FY2024–25 is 88 cents per kilometre, capped at 5,000 km per vehicle per year. This covers all running costs including fuel, registration, insurance, maintenance, and depreciation.
The logbook method lets you claim the actual work-related percentage of all car expenses based on a valid 12-week logbook (valid for 5 years). Better for those driving more than 5,000 km for work.
Eligible work travel includes: driving between two separate workplaces, visiting clients, travelling to a different office, and carrying bulky equipment that cannot be stored at work. The ordinary home-to-work commute is not deductible.
Rental Properties
Declare all rental income, including from Airbnb and short-stay platforms. Deductible expenses generally include interest on the investment loan, property management fees, council rates, water charges, body corporate fees, insurance premiums, and repairs. Capital improvements are not immediately deductible — they are depreciated over time.
If the property was used privately at any point (holiday home), expenses must be apportioned to income-producing periods only.
Capital Gains and Crypto
If you sold shares, property, managed funds, or cryptocurrency during FY2024–25, report the capital gain or loss:
- Assets held more than 12 months are eligible for the 50% CGT discount (individuals and trusts)
- Capital losses offset gains before the discount is applied
- Carry-forward losses from prior years can reduce this year’s gains
- Every crypto disposal — sale, swap, or gift — is a CGT event. The ATO receives data from exchanges
Private Health Insurance
If you don’t hold private hospital cover and your income exceeds the Medicare Levy Surcharge threshold, you may owe an additional 1%–1.5% levy. Check your policy and ensure your insurer’s tax statement appears in pre-fill data.
4. Business Tax Return: What to Check
Get Your Books in Order First
Ensure your accounting software balances match your bank statements, and all income and expense transactions for 1 July 2024 to 30 June 2025 are captured before lodging.
Report All Business Income
All amounts received in carrying on your business are assessable: cash and digital sales, payment platforms (Stripe, Square, PayPal), grants, insurance proceeds, trade discounts, and in-kind income at market value.
Claim All Legitimate Business Deductions
Key deductible business expenses include:
- Wages, salaries, and super contributions (at 11.5% SGC)
- Rent, utilities, and premises costs
- Professional fees: accounting, legal, bookkeeping
- Insurance premiums
- Advertising, marketing, and website expenses
- Business loan interest and bank or merchant fees
- Software subscriptions and business licences
- Stock and cost of goods sold
- Training and professional development directly relevant to the business
Instant Asset Write-Off — $20,000 (Extended to 30 June 2025)
The $20,000 instant asset write-off was extended to 30 June 2025. Small businesses with aggregated annual turnover under $10 million can immediately deduct the full cost of eligible depreciating assets costing less than $20,000, provided the asset was first used or installed ready for use by 30 June 2025.
The $20,000 limit applies per asset — you can write off multiple eligible assets in the same year.
GST and BAS
Reconcile all BAS lodgements for the year before lodging your income tax return. The ATO cross-checks BAS data against income tax returns — inconsistencies trigger reviews.
Trust Distributions
Trustees must resolve and document income distributions before 30 June of each year. If this was not done before 30 June 2025, the entire net income may be taxed to the trustee at the top marginal rate. The ATO’s Section 100A guidance on trust distributions to low-income beneficiaries remains active.
Superannuation Contributions for Business Owners
Self-employed individuals and sole traders can claim a tax deduction for personal super contributions up to the concessional cap — $30,000 for FY2024–25 (including any employer contributions). A Notice of Intent to Claim must be lodged with your super fund and acknowledged before you lodge your return.
Review Your Business Structure
End of financial year is a good time to review whether your structure is still optimal. A base-rate company pays 25% tax on income under $50 million aggregated turnover — potentially more favourable than the personal marginal rate for higher-income sole traders.
5. Record-Keeping
Keep records for five years from lodgement date. Essential documents include:
- Income statements and PAYG summaries (via myGov)
- Bank statements for all accounts
- Receipts and invoices for all deductions
- Vehicle logbooks (if using the logbook method)
- Home office records: hours worked, floor area measurements
- Investment records: purchase prices, sale proceeds, dates for shares, property, and crypto
- Super contribution notices and fund acknowledgements
Digital records are fully accepted. Use accounting software, cloud storage, or the ATO’s myDeductions tool in the ATO app.
6. Capital Gains Checklist
- Identify all assets disposed of between 1 July 2024 and 30 June 2025
- Calculate your cost base (purchase price plus acquisition costs)
- Apply the 50% CGT discount if the asset was held more than 12 months
- Offset any capital losses (current year then carried forward) against gains
- Report all crypto disposals — every trade and swap counts
7. Common Mistakes to Avoid
Lodging before pre-fill data is ready. Wait until late July — your employer income statements and bank data may not be finalised.
Claiming clothing as a deduction when it is conventional. Even a suit required by your employer is not deductible. Only occupation-specific uniforms and protective gear qualify.
Overlooking the GIC/SIC deduction. Interest charges incurred before 1 July 2025 are deductible in 2024–25 returns. Don’t miss this — it changes from 2025–26 onwards.
Forgetting bank interest. All interest income from savings accounts and term deposits must be declared.
Missing crypto CGT events. The ATO has data from exchanges. Every disposal must be reported.
Not lodging because you have a debt. Penalties for failure to lodge are significant. Lodge and contact the ATO about a payment plan instead.
8. Should You Use a Tax Agent?
A registered tax agent finds deductions you might miss, takes responsibility for accuracy, and provides peace of mind. Their fee is tax-deductible in the following year. Using a registered agent also extends your deadline to 15 May 2026. If your return involves rental properties, investments, capital gains, business income, or trust distributions, professional advice is strongly recommended.
Final Thought
Tax time doesn’t need to be stressful. Gather your records, understand what changed for FY2024–25, and take your time. A well-prepared return means a more accurate outcome — and the best possible refund.
This article is intended as general information only and does not constitute financial or tax advice. For advice specific to your circumstances, consult a registered tax agent or financial adviser.
Useful Links