August 2025 Practice Update – Key Changes and Insights for Individuals and Businesses
At Strategem Financial Services, we’re committed to keeping our clients informed about the latest legislative changes, ATO alerts, and financial updates that could impact your personal or business decisions.
Below is a summary of important developments for August 2025.
1. Paid Parental Leave Enhancements
From 1 July 2025, significant changes have been introduced to Australia’s Paid Parental Leave scheme:
Extended entitlement: Increased from 20 to 24 weeks total.
Concurrent leave: Parents can now take up to 4 weeks off at the same time (previously 2 weeks).
Superannuation included: Government Paid Parental Leave will now attract super contributions at the new 12% super guarantee rate.
Increased payment rate: Weekly rate increased from $915.80 to $948.10 in line with the National Minimum Wage, delivering an additional $775.20 over the 24-week period.
2. ASIC Warning – High-Pressure Super Switches
ASIC has warned Australians to be alert to pushy sales tactics and unrealistic promises encouraging superannuation switches into risky investments.
Red flags include:
Urgency to make quick decisions
Promises of “free” help to find lost super or “better” products
Lack of transparency about commissions or fund connections
Tip: If you feel pressured or unsure, hang up and seek independent financial advice before making changes to your super.
3. ATO Alerts – Common Division 7A Mistakes
Division 7A rules prevent shareholders of private companies from accessing company funds for personal use without tax consequences. The ATO’s most common error findings include:
Treating company money as personal money
Loans without compliant agreements
Incorrect benchmark interest rates on Division 7A loan repayments
The ATO has released a ‘Division 7A Myths Debunked’ resource covering misconceptions around business structures, record keeping, and payments to related entities.
4. Taxable Payments Annual Report (TPAR) Lodgment
If you’ve paid contractors in industries such as building and construction, cleaning, courier/road freight, IT, or security, you may need to lodge a TPAR by 28 August 2025.
If you no longer need to lodge, complete a TPAR non-lodgment advice form
Note: Paper lodgments will no longer be accepted after 28 August 2025.
5. Extended Amendment Period for Small Businesses
Small businesses with annual turnover below $50 million now have four years (up from two) to request income tax return amendments for the 2024/25 year and beyond. Accurate record-keeping remains essential for timely and successful amendment requests.
6. ART Decision – Travel Expense Claims
The Administrative Review Tribunal recently denied an offshore engineer’s travel expense claims totalling over $30,000, ruling the expenses were not directly related to active employment duties. However, the tribunal did allow $579 in home office expenses linked to continuing professional development.
Lesson: Ensure expense claims are directly connected to earning assessable income and supported by compliant records.
Need Help?
Whether it’s navigating the new Paid Parental Leave rules, avoiding risky super investments, meeting ATO obligations, or ensuring compliance with Division 7A, the team at Strategem is here to help you make confident, informed decisions.
📞 Contact us today to discuss how these updates may affect you or your business.
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