Tax Updates – September 2025

While we’re not seeing major tax reforms this year, a number of targeted updates could still affect your personal finances or business operations. From changes to deductions and reporting rules to new compliance expectations, it’s worth taking a moment to understand what’s new, and how to stay ahead.

Personal tax updates

Tax debt no longer deductable

The ATO has confirmed that the general interest charge (GIC) on unpaid tax is no longer tax deductible. With the current rate sitting at 11.17% and compounding daily, this change means individuals with outstanding tax debts could see higher costs than in previous years.

Back pay reporting change

From the 2025–26 tax year, all back payments accrued more than 12 months ago must be reported—no matter the amount. Previously, only payments over $1,200 were flagged under Lump Sum E in Single Touch Payroll (STP). That threshold is now gone.

Work-related deductions continue to grow

Work-related expenses remain the most claimed deductions by individuals. In 2022–23, over 10 million Australians claimed an average of $2,739 each, so it’s no surprise the ATO is keeping a close eye on this area.

Notifying SMSF changes

If you’re a trustee of a self-managed super fund (SMSF), don’t forget to notify the ATO within 28 days of any changes to your fund’s contact details, structure, status or bank account. Once submitted, the ATO will send an alert via SMS or email to help protect your fund from fraud or misconduct.

Business tax updates

Small Business Clearing House (SBCH) to close

The ATO’s Small Business Clearing House (SBCH) will shut down ahead of the new Payday Super regime launching on 1 July 2026. If you use the SBCH to pay employee super, now’s the time to start planning your move to a new payment service.

Support for new small businesses

Starting a business is exciting, but it can be overwhelming. With half of new businesses failing within three years, the ATO is rolling out extra support. The Ready for Business Program offers ABN holders practical guidance on GST registration, business structure, and employer responsibilities.

Focus on GST compliance

The ATO is encouraging small businesses to set aside GST payments in a separate account to avoid shortfalls. With the annual GST tax gap estimated at $8 billion, compliance remains a key focus, especially for businesses earning over $75,000 or offering ride-sourcing services.

Need help navigating the changes?

Whether you’re managing your personal tax or running a business, these updates could affect your obligations and bottom line. If you’re unsure how the changes apply to you, reach out to us. We’re here to help you stay compliant, adjust your reporting processes, and plan ahead with confidence.