July 2025 Practice Update: Key Tax & Super Changes You Should Know

10 July

As we begin a new financial year, there are several important updates that individuals, businesses, and SMSFs need to be aware of. Below, we’ve summarised the key changes and deadlines from the ATO and other regulatory bodies that could impact your finances in the 2025–26 income year.

1. Changes to Car Thresholds from 1 July 2025

If you’re buying a vehicle for business use, here’s what you need to know:

Car depreciation limit: Now set at $69,674 for the 2026 income year.
Maximum GST credit: You can only claim up to $6,334, even if the vehicle costs more.
Luxury Car Tax (LCT) thresholds:

$91,387 for fuel-efficient vehicles
$80,567 for all other vehicles

Remember: You can’t claim LCT as an input tax credit.

2. Super Guarantee & Employer Obligations

Super Contributions for June 2025 Quarter

Must be received by employee funds no later than 28 July 2025. The SG rate increased to 12% from 1 July 2025. Late payments could trigger penalties.

Payroll Updates from 1 July 2025

Check for changes in withholding tax tables.
Update payroll software accordingly.
Lodge your Single Touch Payroll (STP) finalisation by 14 July 2025, including all employees—even those terminated.

3. Skilled Visa Program & Data Matching

The ATO and Department of Home Affairs will exchange data to ensure employer compliance. This affects sponsors of visa holders (subclass 457, 482) and visa conditions for workers. Around 58,000 individuals will be matched for STP records.

4. SMSFs: Transfer Balance Account Reporting (TBAR)

All SMSFs must report Transfer Balance Account (TBA) events quarterly, even if a member’s total balance is under $1 million. Reports for the June quarter are due by 28 July 2025. Non-compliance can trigger penalties.

5. Beware of Tax Advice from Social Media 'Finfluencers'

The Tax Practitioners Board warns against relying on unlicensed financial influencers for tax or financial advice. Many are paid to promote products and may not provide complete or accurate information.

Always check your adviser is registered with the TPB before taking financial advice.

6. Home Office and Car Expense Deductions

A recent tribunal case confirmed that employees working from home due to COVID-19 restrictions may be eligible for home office rent deductions.

Car travel between home and a second work site may also be deductible if both roles are performed consecutively.

What to Do Next

Whether you're an employer, SMSF trustee, or individual taxpayer, staying up to date with these changes helps you remain compliant and maximise your benefits.

Need help applying these updates to your circumstances? Strategem’s team of accountants and advisers are here to help.

📍 Offices in Bendigo & Melbourne
🌐 www.strategem.com.au
📞 Contact us today to book a consultation.

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If you need further advice, please do not hesitate to contact our office on (03) 5445 4777 and one of our Accountants & Advisors are available to support you.

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