As the new financial year begins, so do fresh opportunities to improve your financial position. Whether you’re an individual taxpayer, a sole trader, or a business owner, staying across the latest tax changes can help you plan smarter and avoid surprises.
Here are some of the key updates and planning tips for the 2025-26 income year:
1. Superannuation Guarantee Increase
From 1 July 2025, the Super Guarantee (SG) rate has increased to 12%. Employers must ensure their payroll systems are adjusted to reflect this new rate and contributions are paid on time to avoid penalties.
2. Car Limit and Luxury Car Tax Thresholds
- The car depreciation limit is now $69,674.
- The maximum GST credit for a vehicle is $6,334.
- Luxury Car Tax (LCT) thresholds:
- Fuel-efficient vehicles: $91,387
- Other vehicles: $80,567
If you’re purchasing a vehicle for your business, make sure you’re across the new limits to maximise deductions and stay compliant.
3. Instant Asset Write-Off
Although government policy around the instant asset write-off changes frequently, it’s essential to stay updated. Check the current threshold and eligibility criteria before making asset purchases.
4. Individual Tax Rates
Keep an eye on any adjustments to personal income tax brackets.
5. Business Planning Strategies
- Review cash flow forecasts
- Update your budget for the year ahead
- Schedule a mid-year tax review to adjust strategies in real time
6. Record Keeping and Digital Tools
Now is the perfect time to audit your bookkeeping systems. If you’re still relying on spreadsheets or paper files, consider upgrading to cloud accounting software. It saves time, reduces errors, and simplifies tax season.
Get advice early! Proactive planning and regular check-ins with your accountant can help you take advantage of all available deductions, avoid compliance issues, and make the most of the 2025-26 financial year.
Need help getting your tax strategy in place? Give our friendly team a call on 07) 4638 5300
