We know you’ve got a business to run, and tax admin probably isn’t at the top of your to-do list. But with the new financial year just around the corner, some significant ATO changes are coming into effect from 1 July 2025 that could impact how you claim deductions and manage expenses.
At bennetts tax & bas service, we’re here to keep things simple, compliant, and stress-free. Here’s a summary of the latest updates and what they mean for your business plus how we can help you stay ahead of the game.
Work-from-Home Rate Increased to 70c/hr—But the Rules Are Tighter
Do you or your team regularly work from home? Good news: The ATO’s hourly rate for claiming work-from-home expenses is increasing to 70 cents per hour from 1 July 2025.
But there’s a catch.
A 4-week sample diary is no longer enough.
To claim this deduction, the ATO now requires a full record of all hours worked from home not just a short-term estimate. That means you’ll need to keep a daily diary or log of hours for the entire financial year.
Why it matters:
If you don’t keep accurate records, your claim could be rejected or adjusted in an audit, potentially leading to back payments or penalties.
How we can help:
We will talk you thru how to keep a record of hours that works for you
Motor Vehicle claims? NO logbook means No Deduction
If you claim vehicle expenses for business use, the ATO has one thing to say: “Prove it.”
ATO scrutiny around motor vehicle claims has ramped up, with scrutiny getting stronger each year, and without a valid logbook, your deductions may not hold up.
No logbook? No deduction.
The ATO wants clear evidence of how your vehicle is used for work purposes. That means:
- A valid logbook (kept for a continuous 12-week period, updated every 5 years)
- Odometer readings
- Records of business-related trips
Tip from the bennetts tax & bas service team:
There are plenty of free logbook apps out there—user-friendly and ATO-compliant. We can help you choose one and make sure you’re tracking the right info.
Why it matters:
Incorrect or unsubstantiated claims can lead to adjustments, penalties, or audits—none of which are fun for any business.
ATO Interest Charges will no longer be tax-deductible
Have an outstanding ATO debt? This one’s for you.
From 1 July 2025, the General Interest Charge (GIC)—which applies to unpaid ATO debts—will no longer be tax-deductible.
That means:
- If you have a tax debt, you’ll pay more out of pocket if it’s not cleared up before the deadline.
- You’ll lose the ability to offset that interest cost against your taxable income.
What should you do?
If you can, it’s a smart move to clear your ATO balance before 30 June 2025 to avoid extra non-deductible interest.
Need help reviewing your ATO obligations?
We can check your account, help you understand your options, and even liaise with the ATO on your behalf to make sure you’re in the best position possible.
Lets get your tax compliance and accounts in order before the rush
With all these changes rolling out at once, it’s more important than ever to stay organised and proactive.
At bennetts tax & bas service, we’re not just here to file returns—we’re your year-round partners in smarter business finance. Whether it’s:
- Helping you implement work-from-home tracking
- Sorting your vehicle logbook compliance
- Clearing up ATO debts before the changes kick in
Lets talk about your next steps
Have questions about these updates? Not sure where your business stands?
📞1300 TAX ACT (1300 829 228)