Navigating tax changes can be challenging for any business owner, especially with ongoing updates in legislation. As 2025 unfolds, it’s essential for Perth’s small businesses to stay informed and compliant with the latest tax regulations. Whether you’re managing your own finances or relying on professional bookkeeping services in Perth, understanding these changes will help you make smarter business decisions.
Below, we’ve summarised the key tax changes for 2025 that every small business in Perth should be aware of, along with advice from experienced business tax accountants in Perth.
- Updated Instant Asset Write-Off Thresholds
For the 2024–25 financial year, the Australian Government has updated the instant asset write-off rules. Small businesses with an aggregated turnover of less than $10 million can instantly write off assets costing less than $20,000 per asset. This threshold applies from 1 July 2024 to 30 June 2025.
What this means for you:
If you’re planning on purchasing equipment or machinery, doing so before 30 June 2025 may allow you to claim a full deduction this financial year. Your business advisors in Perth can help time your purchases effectively to maximise tax benefits.
- Phase-Out of Temporary Full Expensing
Temporary full expensing, which allowed eligible businesses to deduct the full cost of eligible assets, ended on 30 June 2024. From 1 July 2024, businesses will need to return to using traditional depreciation methods unless covered by the $20,000 instant write-off rule.
Action point:
Ensure your bookkeeping services in Perth are adjusting depreciation schedules in line with these changes to avoid errors or compliance issues.
- Superannuation Guarantee Increase
The Superannuation Guarantee (SG) rate has increased to 11.5% as of 1 July 2024, and will rise again to 12% by 1 July 2025.
Impact on small businesses:
This increase affects your payroll obligations. You’ll need to update your payroll systems and ensure contributions are paid on time to avoid penalties. A small business tax accountant in Perth can assist with these updates and ensure your reporting stays compliant.
- ATO’s Focus on GST Compliance
The ATO has significantly ramped up its efforts to audit GST compliance in small businesses. With a focus on unreported cash sales and incorrect GST claims, businesses need to ensure their BAS (Business Activity Statements) are accurate and submitted on time.
Tip:
Engage experienced bookkeeping services in Perth to help maintain accurate GST records and ensure timely lodgements, reducing your audit risk.
- Changes to Working from Home Deductions
If your small business operates from home, updated ATO rules for calculating home office expenses now require more detailed records. The fixed-rate method is now $0.67 per hour, covering electricity, internet, phone, and stationery—but you must maintain logs of hours worked and retain bills for substantiation.
Pro tip:
Work with a business advisor in Perth to determine whether the fixed-rate or actual cost method provides a better outcome for your situation.
- Introduction of eInvoicing Mandate
The Federal Government is encouraging small businesses to transition to eInvoicing to reduce fraud and improve payment cycles. While not yet mandatory for all, it’s expected to become compulsory for businesses dealing with government contracts.
Why it matters:
eInvoicing streamlines transactions and improves cash flow. Many bookkeeping services in Perth now offer integration with eInvoicing platforms—upgrading early could provide a competitive advantage.
- Tax Deductibility of Digital and Skills Training
Small businesses can continue to claim a 120% deduction on eligible technology investments and external training for employees, available until 30 June 2025.
Examples of deductible spending:
- Cloud-based software
- Cybersecurity upgrades
- Approved training for staff development
This temporary measure is a valuable opportunity for businesses to modernise and upskill while receiving an enhanced tax deduction. A small business tax accountant in Perth can help ensure eligibility and proper documentation.
- Stricter Division 7A Loan Compliance
If your business is structured as a company and lends money to shareholders or associates, Division 7A rules apply. The ATO has signalled tighter enforcement in 2025, particularly around loan agreements and repayments.
Take action:
Review your loan arrangements with a Perth business advisor or tax accountant to ensure compliance with Division 7A and avoid unexpected tax liabilities.
- Employee vs Contractor Classification Scrutiny
The ATO is reviewing how small businesses classify workers. Misclassifying contractors as employees (or vice versa) can result in significant back-payments and penalties.
Suggestion:
Have your contracts reviewed by a business advisor in Perth to ensure your worker classifications are accurate and compliant with Fair Work and ATO standards.
- Fringe Benefits Tax (FBT) Awareness
If your business provides non-cash benefits to employees (e.g., vehicles, gym memberships, or expense reimbursements), you may be liable for Fringe Benefits Tax. The ATO is placing increased scrutiny on FBT compliance in 2025.
Mitigation:
Ensure that any fringe benefits are recorded and reported correctly. Engage bookkeeping services in Perth to accurately track benefits and consult with a tax specialist on FBT strategies.
Final Thoughts
With 2025 bringing several significant tax changes, staying informed and proactive is crucial. Working with qualified small business tax accountants in Perth or experienced business advisors in Perth can help you interpret new rules, identify opportunities, and minimise risk.
If you’re unsure how these changes affect your business, now is the time to seek professional support. Whether it’s through streamlined bookkeeping services in Perth or strategic financial advice, staying ahead of tax changes ensures you can focus on growth—not red tape.
