7 Tax Changes You Shouldn’t Ignore in 2025

1. Higher Work-From-Home (WFH) Deductions

The Australian Taxation Office (ATO) has increased the fixed rate for WFH deductions from 67 cents to 70 cents per hour for the 2024–25 financial year. This adjustment allows taxpayers to claim a larger deduction for expenses incurred while working from home, such as electricity, internet, and phone usage.
Reference: ATO – Working from home expenses

2. Updated Tax Brackets

The government has announced new tax cuts effective from 1 July 2026, aiming to provide cost-of-living relief and address bracket creep. The tax rate for incomes between $18,201 and $45,000 will reduce from 16% to 15%, and further to 14% from 1 July 2027.

Reference: ATO – Personal income tax cuts

3. Stricter ATO Audits

The ATO is intensifying its compliance activities, focusing on areas such as small businesses, work-related expenses, and rental property deductions. Enhanced data-matching capabilities mean the ATO can more effectively identify discrepancies and ensure accurate reporting.

Reference: ATO – Areas of focus 2024–25

4. Superannuation Rule Changes

Significant changes to superannuation rules are set to take effect:

• Payday Superannuation: From 1 July 2026, employers will be required to pay super contributions on the same day as wages, enhancing investment growth for employees.
• Tax on High-Balance Accounts: Starting 1 July 2025, superannuation accounts exceeding $3 million will be taxed at 30%, up from the current 15%, aiming to make concessions fairer.

References:

• Superannuation Shake-Up – July 2025 Rule Changes
• com.au – Super tax changes

5. Rental Property Deductions Tightened

The ATO is scrutinizing rental property deductions more closely, ensuring that claims for expenses like repairs, maintenance, and depreciation are accurate and substantiated. Taxpayers must differentiate between immediate deductions and those that need to be claimed over several years.

Reference: ATO – How to claim rental expenses

6. Pre-filled Data Isn’t Always Correct

While the ATO provides pre-filled data to simplify tax returns, it’s essential to verify this information. Discrepancies can occur due to timing issues or errors from third-party data providers. Taxpayers are responsible for ensuring the accuracy of their returns.

Reference: ATO – Pre-fill availability

7. Crypto & Side Hustles Under the Microscope

The ATO is placing increased attention on income from cryptocurrencies and side hustles. Cryptocurrency transactions are subject to capital gains tax, and income from side gigs must be reported. Enhanced data-matching techniques enable the ATO to detect unreported income more effectively.

References:

• ATO – Crypto asset investments
• Australia Unwrapped – Cryptocurrency Tax Guide 2025