With the end of the financial year approaching, small business owners should be aware of important tax changes and compliance updates on the horizon. From superannuation adjustments to shifts in GST reporting, these developments could significantly affect your business’s cash flow and obligations.
Here’s what you need to know to remain compliant, avoid unexpected costs, and position your business for ongoing success.
From 1 July 2025, the superannuation guarantee (SG) rate will rise from 11.5% to 12%, meaning employers must contribute more to employees’ superannuation.
While a 0.5% increase might not seem significant, it adds up, particularly for small businesses with multiple employees. To stay ahead:
✔ Review payroll budgets and forecast the increased costs.
✔ Update payroll software to reflect the new rate.
✔ Communicate with employees about the change and its benefits.
From 1 July 2026, the government plans to introduce Payday Super, requiring businesses to pay employees’ superannuation at the same time as wages rather than quarterly. While still under consultation, this reform aims to improve retirement savings but will impact business cash flow.
Small businesses should start preparing by:
✔ Reviewing payroll systems to ensure compliance with real-time super payments.
✔ Adjusting cash flow strategies to accommodate more frequent payments.
✔ Setting aside funds for super and PAYG withholding (PAYGW) each pay cycle to avoid shortfalls.
Implementing these habits now will make the transition smoother and prevent cash flow disruptions.
From 1 April 2025, the ATO will require certain businesses to switch from quarterly to monthly GST reporting if they have a history of:
✔ Late lodgements
✔ Unpaid GST debts
✔ Incorrect reporting
The ATO believes that monthly GST reporting helps businesses manage tax obligations more effectively. Many businesses that voluntarily switched to monthly reporting found it easier to manage cash flow through smaller, more frequent payments.
If your business is affected:
Tip: If you’re struggling with BAS payments, consult the ATO or your accountant for cash flow management strategies.
The government has proposed extending the $20,000 Instant Asset Write-Off (IAWO) for 2024-25, but this is not yet legislated. Final confirmation is expected in the federal budget.
What businesses should consider:
✔ Buy based on business needs rather than just tax benefits—ensure purchases align with long-term growth strategies.
✔ If the law doesn’t pass, assets over $1,000 will need to be depreciated rather than written off immediately. You’ll still get a tax deduction, but not in one financial year.
✔ Vehicle purchases have limits—the IAWO does not cover the full cost of passenger vehicles, which are subject to a car limit of $69,674 for 2024-25. Keep a valid logbook to claim deductions correctly.
Many businesses rush to lodge tax returns on 1 July to secure refunds quickly, but filing too early can lead to errors and delays.
✔ Employers have until 14 July to finalise payroll and submit income statements to the ATO.
✔ Other institutions—banks, health funds, investment providers—also submit pre-fill data in early July.
✔ Lodging before all reports are finalised can result in missing or incorrect data, requiring ATO amendments later.
Best practice: Wait until mid to late July to ensure all financial data is correct before lodging.
While tax changes can feel overwhelming, a little preparation now can save stress, time, and money later.
✔ Keep detailed financial records.
✔ Monitor tax law updates and ATO notifications.
✔ Review cash flow strategies to accommodate upcoming super and GST changes.
✔ Consult a tax professional for guidance specific to your business.
By taking a proactive approach, you’ll ensure compliance, manage cash flow effectively, and avoid unnecessary penalties in the new financial year.
Improving your business’s profitability isn’t just about cutting costs — it’s about identifying areas where money can be saved without compromising quality or efficiency. A strategic approach to cost control can lead to sustainable savings and keep your business competitive in the long term.
Running a successful business means mastering more than just your core operations. Tax and superannuation obligations might not be the most exciting part of business ownership, but getting them right is essential for your success. Here’s your comprehensive guide to the key dates and requirements for 2025.
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