September 2025 Practice Update
At Strategem Financial Services, we’re committed to keeping you informed about the latest changes that could impact your financial position. Below is a summary of important updates from the Australian Taxation Office (ATO) and recent government changes.
ATO to Include ‘Debts on Hold’ in Account Balances
From August 2025, the ATO has begun including ‘debts on hold’ in taxpayer account balances.
A ‘debt on hold’ is a tax debt where collection was previously paused, usually because it was not cost-effective for the ATO to pursue at the time.
Key points to note:
Taxpayers with debts of $100 or more will receive a letter before it appears in their account balance.
Debts under $100 will also be included but without prior notice.
The ATO will stop remitting the General Interest Charge (GIC) six months after the debt is added. After this, GIC will start to apply.
If you’re unsure whether this affects you, our team is here to help you review your position.
Student Debt Reduction Now Law
Recent legislation has delivered on the government’s promise to ease student debt burdens. The changes include:
A one-off 20% reduction to student loans incurred on or before 1 June 2025.
An increased minimum repayment threshold – rising from $54,435 to $67,000 from 2025/26.
A new marginal repayment system, where repayments only apply to income above the threshold.
These changes may positively impact cash flow for many Australians, especially younger professionals.
Getting the Main Residence Exemption Right
When it comes to selling property, the rules around the Capital Gains Tax (CGT) main residence exemption can be complex. The ATO reminds taxpayers to keep in mind:
You generally can’t claim the exemption on vacant land.
The 6-year absence rule only applies if the property was your main residence before it was rented out.
Only one property can be your main residence at a time, with a limited 6-month exception.
Our Advisors can guide you through these rules to ensure you don’t miss out on valuable tax concessions.
Small Business Superannuation Clearing House Closing
The government’s Small Business Superannuation Clearing House (SBSCH) will close on 1 July 2026.
Key dates:
From 1 October 2025, new users won’t be able to register.
Existing users should start planning alternative arrangements now – whether through payroll software, super funds, or other providers.
If you’re a small business owner, we recommend reviewing your systems early to avoid disruption.
ATO Expands Data-Matching with AFCX
The ATO will be collecting financial data from the Australian Financial Crimes Exchange (AFCX) for the 2025–2027 income years. Around 70,000 individuals’ records will be captured annually, including account details and transaction data.
The purpose is to improve fraud prevention and safeguard taxpayers from identity crime.
Activity Statement Lodgment Reminders
Certain employers will receive ATO reminders about lodging activity statements. These will include pre-filled amounts such as:
PAYG withheld through Single Touch Payroll
GST and PAYG instalments
If not lodged by the due date, the ATO may finalise the statement on your behalf. It’s essential to review and correct any data before lodgment.
Need Assistance?
At Strategem Financial Services, our goal is to help you stay ahead of regulatory changes and make informed decisions with confidence. If you would like to discuss how these updates may affect you or your business, please get in touch with one of our experienced Advisors.
Book your EOFY follow-up session today:
Melbourne Office | Bendigo Office
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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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