Your FY 2025–26 Rundown: Tax, Assets, Cars & Property
As the new financial year kicks off, several key tax changes from 1 July 2025 are set to impact businesses across Australia. Whether you’re a small business owner, employer, or property buyer, staying informed will help you stay compliant and avoid surprises. Here’s a quick breakdown of what’s changing and what it means for you.
GIC & SIC
No Longer Deductible
Starting 1 July 2025, General Interest Charges (GIC) and Shortfall Interest Charges (SIC) will no longer be tax deductible—regardless of when the debt originated.
If these charges are later remitted, they won’t need to be reported as assessable income either.
This means businesses can no longer claim these charges as a tax offset, even if they relate to older debts. It’s a good time to review any outstanding liabilities and consider settling them before the new rules kick in.
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$20K Instant Asset Write-Off
Ends on 30 June 2025
The popular $20,000 instant asset write-off for small businesses ends on 30 June 2025. From 1 July, businesses won’t be able to instantly deduct assets under this threshold.
If you’ve been holding off on buying equipment or tech upgrades, now’s the time to act. After the deadline, assets will need to be depreciated over time, which could impact your cash flow and tax planning.
Check if you’re eligible and what’s changing.
Plug-In Hybrids
Lose FBT Exemption
From 1 April 2025, plug-in hybrid electric vehicles (PHEVs) will no longer qualify for the Fringe Benefits Tax (FBT) exemption for electric cars.
The only exception is if the vehicle was already in use and under a binding agreement before this date.
This change is part of a broader push to tighten FBT concessions and focus them on fully electric vehicles. If you’re planning to offer a PHEV as a company car, it might be worth reconsidering your options before April.
See how this affects your FBT reporting.
Foreign Resident CGT
Withholding Tightened
From 1 January 2025, the Capital Gains Tax (CGT) withholding rate for foreign residents selling Australian property increases from 12.5% to 15%. It now applies to all property sales, not just those over $750,000.
This means buyers need to be extra careful with paperwork—missing a clearance certificate could mean paying the ATO directly. The change is designed to improve tax compliance and reduce revenue leakage from foreign property transactions.
Understand the new rules for buyers and sellers.
Wrapping Up
These tax changes from 1 July 2025 are part of broader efforts to streamline compliance and tighten tax rules. Whether you’re adjusting payroll, planning asset purchases, or navigating property transactions, now’s the time to prepare.
Need help navigating these updates?
Let’s chat—our team’s here to make tax time smoother and stress-free.
