Individuals

By proactively considering the points below before 30 June 2025, you can optimise your tax position for the 2025 financial year and ensure a smoother tax return process. 

Super Contributions: 

• The super guarantee rate will increase from 11.5% to 12% starting from 1 July 2025. The contribution cap will remain at $30,000 for the 2026 financial year.
• Pre-Tax Contributions: Contributions made to your superannuation fund from your pre-tax income (also known as concessional contributions) this financial year may be able to be claimed as a deduction in your 2025 tax return.
• Contribution Cap: The annual threshold for pre-tax super contributions is $30,000 for the 2024-25 financial year. This cap includes:
  • The Superannuation Guarantee (SG) payments made by your employer, currently at 11.5% of your gross wages.
  • Any salary sacrifice contributions you've made via your employee wages.
  • Any personal super contributions for which you intend to claim a tax deduction.
• Maximising Contributions: You have the opportunity to contribute extra contributinos to your super fund, up to the $30,000 limit, before 30 June 2025.
• Carry-Forward Unused Caps:
  • If your total super balance was under $500,000 at the end of the 2023-24 financial year, you might be able to carry forward unused concessional contribution amounts from previous years.
  • Additionally, any unused portion of your $30,000 cap from this financial year can be carried forward to the 2026 financial year, provided your total super balance remains below $500,000 at the end of the 2024-25 financial year.
• Important Considerations:
  • Carefully track all your concessional contributions throughout the year (employer SG, salary sacrifice, and personal deductible contributions) to avoid exceeding the $30,000 cap. Contact your super fund provider if you need to confirm the amounts contributed so far.
  • Be mindful of processing times. Super funds generally recommend making any additional contributions by COB 20 June 2025 to ensure they are received and processed by 30 June 2025 and are deductible in your 2025 tax return.
  • A Notice of Intent to Claim form must be lodged with your super fund before your 2025 tax return is prepared, as a requirement for claiming super contributions on individual tax returns.
• Superannuation Account Consolidation: If you have multiple super accounts, consolidating them into one fund can simplify your finances, reduce fees, and make it easier to track your superannuation balance.

• Fixed Rate Method: Claim a rate of 70 cents per hour for each hour you worked from home between 1 July 2024 and 30 June 2025. This rate covers phone, internet, electricity, and other running costs.
• Actual Cost Method: Claim the actual work-related portion of your home running expenses. To use this method, you must have a dedicated workspace in your home.
• Important Note: If you own your home and use the actual cost method to claim occupancy expenses (like mortgage interest, insurance), be aware that this may have capital gains tax implications when you eventually sell your property.

• Consider making donations to registered charities before 30 June 2025.
• Donations over $2.00 are tax-deductible. Ensure you keep records or receipts of all donations.

• If you need to purchase or upgrade work-related equipment, doing so before 30 June 2025 allows you to claim the cost as a deduction in your 2025 tax return.
• The equipment must be directly related to earning your income to be deductible. 

Work-Related Education Expenses: 

• Consider pre-paying for work-related education costs prior to 30 June so you can include the deduction in your 2025 tax return.
• You can claim self-education expenses if the course directly relates to maintaining or improving your skills and knowledge for your current job or is likely to lead to an increase in income from your current employment.
• Courses unrelated to your current employment or a career change are not deductible.

• Ensure your car logbook for the 2025 financial year is up to date.
• The ATO closely scrutinises motor vehicle claims, so a current logbook is crucial, especially if your logbook is over five years old or your work or car usage has changed for 2025.
• Alternatively, if you are using the Set Rate Per KM method for motor vehicle deductions, the ATO rate is 88 cents per km for work or business use. Make sure you keep a record or diary notes of car usage for your tax return deduction.

• Assess your need for income protection insurance based on your financial situation. Premiums paid for income protection policies (outside of superannuation) may be tax-deductible.
• Premiums paid through your super fund are generally not deductible on your individual tax return.
• Consider pre-paying your income protection premiums for the next year before 30 June 2025, for a potentially larger deduction in the current financial year.

• Remember to keep records (receipts, invoices, bank statements, diary notes) of all other potential tax deductions you may be eligible for.
• For home office and telephone/internet expenses, if using the actual cost method, the ATO requires itemised bills for a minimum of 2 months' period. The fixed rate method for home office covers these costs for the 2025 tax year.

• Utilise the AFYF portal to upload relevant documents (receipts, income statements, dividend information) as you receive them. This will streamline the tax preparation process.
• If you haven't received an invitation to the new online portal yet, contact our office. For more information about the portal, please visit here.
• If you've provided your Tax File Number (TFN) to your health insurance provider, your details will likely be available to us via the ATO. Otherwise, you'll need to provide us with a copy of your annual health insurance statement.
• For employees, your income statement (formerly payment summary) will be accessible through your MyGov account.
• For a checklist of details needed for tax returns, please refer here. 

Change of Details:

• If you've changed your name or address this year, please inform us so our records and the ATO's can be updated.

Note: 

• Bear in mind, all of the above depend on your personal cash flow situation. If you already have a relationship with a financial advisor, please make sure you contact them prior to 30 June for any advice on the treatment of investments or super.

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