1 July tax changes update: minimal drama, but still worth a look

Honestly… a surprisingly chill year for tax changes. Which feels suspicious. Like when your toddler is very quiet in the next room and you know they’re either asleep or drawing on the dog.

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Either way, here’s what’s actually changed from 1 July that small business owners should keep an eye on:

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1. Super’s now 12%. You gotta pay it. Even if you don’t like it.

Yep, the super guarantee has gone up again. As of 1 July 2025, it’s officially 12%. So if you’ve got employees (or you’re paying yourself through payroll), now’s the time to double check your software is on the same page.

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Some things to know:‍

- Newer accounting systems usually sort this out automatically

- Older or cranky ones may need a nudge

- Sometimes, it’s just your payroll settings being weird

👉 Recommendation: Do a quick super spot check on your first pay run. It’ll take five minutes and save you that awkward “oh no” moment in September.

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2. Instant asset write-off lives on

Good news: that $20K instant asset write-off isn’t going anywhere just yet. It’s sticking around until 30 June 2026 (pending legislation, but all signs point to green lights).

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This means:‍

- You can still immediately claim a deduction for assets under $20K (GST exclusive)

- It’s per asset, not a total limit. So multiple items = multiple claims

- Your group turnover needs to be under $10 million to qualify

👉 Recommendation: Got your eye on new tools, tech, or a very impressive beer (office) fridge? If it’s under $20K, and business-related, now’s a solid time.

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3. ATO interest no longer tax deductible (Yep. Classic.)

A reminder that starting 1 July 2025, any interest you pay on ATO accounts won’t be tax deductible anymore. Because… Albo has his own big debt he’s trying to pay off.

If you’re currently on a payment plan and thinking “eh, it’s fine", it might be time to reconsider whether borrowing from the ATO is still the best move.

You might be better off with a working capital loan or even refinancing via your home or other assets.

👉 Recommendation: If you’re chipping away at a big tax debt, chat to us. We can walk you through the options and line you up with a broker who might be able to help.

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That’s the wrap. No wild tax curveballs this year, but definitely a few things worth ticking off.

If you’re unsure, confused, or just want to vent about your payroll settings, you know where to find us.

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– The team at PAL (making accounting slightly less boring since way back when)

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Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!

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