Practice Update: Key Tax and Compliance Insights for May 2025

14 May

As we approach the end of the financial year, it’s an important time for business owners, trustees, and individuals to review their tax and compliance obligations. Here’s a quick snapshot of recent updates, reminders, and tips from the ATO and relevant authorities to help you stay on track.

Managing Your Business Day-to-Day Transactions

The ATO has shared simple but powerful practices to help small business owners keep their tax affairs running smoothly:

✅ Stay across upcoming expenses and regularly reconcile your accounts.

✅ Set aside GST by transferring it into a separate account to avoid cash flow surprises.

✅ Put aside PAYG withholding and superannuation contributions ahead of deadlines.

✅ Schedule time in your calendar to prepare and lodge your Business Activity Statement (BAS) on time.

Need support implementing these practices? Get in touch with our team to discuss how we can help simplify your business tax management.

Minimum Pension Drawdown Reminder

If you’re receiving an account-based pension from your Self-Managed Super Fund (SMSF), don’t forget that your minimum annual pension payment must be made by 30 June 2025. This amount is calculated using your pension balance as at 1 July 2024 (or pro-rata if you started your pension during the year).

⚠️ Missing this deadline could result in adverse tax consequences, so it’s critical to review your payments well before 30 June.

Avoiding Common Capital Gains Tax (CGT) Errors

Selling a property? Don’t assume that a foreign resident capital gains withholding (FRCGW) clearance certificate means you’re clear of further obligations. You’ll still need to report any capital gains or losses (or claim exemptions or rollovers) in your tax return.

If any FRCGW was withheld at settlement, let us know and provide the purchaser’s payment confirmation so we can help you claim the credit.

And if you’ve ever lived in the property you sold, be sure to give us full details so we can apply the correct main residence exemption.

Record-Keeping Obligations for Not-for-Profits

Not-for-profit (NFP) organisations must maintain accurate and complete records for tax and super compliance, including governing documents, financial reports, grant documentation, and registrations. These records should be kept for at least five years in a readily accessible form.

If your NFP is endorsed as a deductible gift recipient (DGR), it’s especially important to retain records explaining all transactions relevant to your DGR status.

A strong record-keeping system doesn’t just meet your obligations — it supports the long-term success of your organisation.

Working from Home? The Fixed-Rate Method Has Increased

From 1 July 2024, the ATO’s fixed-rate method for claiming running expenses while working from home has increased from 67 cents to 70 cents per hour.

This rate covers additional expenses like electricity, gas, internet, phone, stationery, and consumables. It doesn’t include occupancy costs like rent or mortgage interest.

Alternatively, you can still claim actual expenses if you maintain detailed records.

Meal Expense Claim Approved for Truck Driver

A recent case before the Administrative Review Tribunal (ART) saw a long-haul truck driver successfully claim $32,782 in meal expenses, despite not having full receipts.

Key factors in the tribunal’s decision included:

✔️ The driver received a travel allowance covering the expenses.

✔️ The expenses were incurred in earning his income.

✔️ The amounts claimed were within the ATO’s reasonable travel allowances.

This case highlights that even without full documentation, taxpayers may be able to claim deductions if other evidence (like logbooks and bank statements) supports their claim.

Need Assistance?

If any of these updates apply to you or you’d like advice tailored to your circumstances, we’re here to help. Contact our office to discuss your tax and compliance needs before the end of the financial year.

We are here to help

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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