10 TAX CHANGES TAKING EFFECT FROM 1 JULY 2025 from Mr Taxman, Adrian Raftery
The only constant about tax is change. Dr Adrian Raftery, principal of Mr Taxman and author of 101 Ways to Save Money on Your Tax - Legally! 2025-2026 edition (Wiley, May 2025, AU$32.95), provides us with some of the tax changes coming into play from 1 July 2025.
1. Paid parental leave
The amount of Parental Leave Pay available to families will increase by 10 days to 120 days (24 weeks) for children born or adopted from 1 July 2025. The minimum number of days reserved will also rise from 10 to 15 days. Superannuation payments will be added from 1 July 2025.
2. Hybrid electric vehicles subject to Fringe Benefits
Since 1 July 2022, electric car owners have enjoyed an exemption on fringe benefits tax on these cars and their associated car expenses. However the ATO recently ruled that plug-in hybrid electric vehicles will not be considered zero or low emissions vehicles under Fringe Benefits Tax (FBT) law and will no longer be eligible for being exempt from FBT.
3. Instant Asset Write-Off to change again?
Whilst there was an election promise to extend the $20,000 Instant Asset Write-off threshold for another year, at the time of writing this has yet to be enacted and at this stage will revert back to $1,000 from 1 July 2025.
4. General Interest Charge no longer deductible
The ATO’s general interest charge (GIC) - which accrues on your debt until it is paid off in full & currently 11.17 per cent, will no longer be tax deductible from 1 July 2025. The oxymoron is that any interest that the ATO pays on tax accounts will still remain assessable to the lucky recipient.
5. Super guarantee contributions increase
After gradual changes over the years, the final scheduled increase for the compulsory employer superannuation contributions starts in the 2025–26 financial year with a 0.5 per cent rise taking it to 12 per cent of ordinary time earnings.
6. Apprentices in housing construction occupations
The 2025/26 Federal Budget announced a financial incentive of up to $10,000 to eligible apprentices in housing construction occupations from 1 July 2025. The budget also announced that small businesses will receive a $150 rebate on their energy bills from 1 July 2025 to the end of 2025.
7. Transfer Balance Cap rising
From 1 July 2025 there will be an increase to the transfer balance cap – the amount that you can have in a ‘tax-free’ retirement phase superannuation account - from $1.9 million to $2 million.
8. Div 296 tax
The controversial 30 per cent tax proposed to be applied to future earnings for superannuation balances above $3 million is proposed to start from 1 July 2025. This measure is not yet law.
9. Higher Education Loan Program (HELP) Repayment Thresholds
The student loan repayment system will also be reformed from 1 July 2025 by moving to a marginal repayment system with a higher minimum repayment threshold. The minimum repayment threshold is proposed to increase from $54,435 in 2024–25 to $67,000 in 2025–26. This measure is not yet law.
10. National Minimum Wage
From 1 July 2025 the National Minimum Wage will increase by 3.5 per cent to $24.95 per hour (which equates to $948 per 38 hour week) following the 2024/25 Annual Wage Review.
This information is of a general nature only and does not constitute professional advice. You must seek professional advice in relation to your particular circumstances before acting.
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These tips were provided by Mr Taxman, Adrian Raftery, author of 101 Ways to Save Money on Your Tax - Legally! 2025-2026 edition (Wiley, May 2025, AU$32.95). @mistertaxman www.mrtaxman.com.au
101 Ways to Save Money on Your Tax – Legally! 2025-2026 edition
By Adrian Raftery
Published by Wiley May 2025
ISBN 9781284328635
AU$32.95
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For further information or to request an interview, please contact: Adrian Raftery on 1800 TAXMAN (1800 829 626) or 0418 210 599 adrian@mrtaxman.com.au