Changes in Australian tax law and policy: What businesses need to know
Keeping up with changes in Australian tax law and superannuation policy is essential for all businesses — big or small. Last updated as of 27th March 2025, two fast-approaching significant changes include the Superannuation Guarantee (SG) rate increase and discontinuation of tax deductions for ATO interest charges.
Superannuation Guarantee Rate Increases
– Effective from 1 July 2025
– New SG Rate: 12% (up from 11.5%)
One of the key updates is the legislated increase to the Superannuation Guarantee (SG) rate. Starting from 1 July 2025, the SG rate will rise from 11.5% to 12%. This change continues the government’s long-term plan to gradually increase super contributions and bolster retirement savings for Australian workers.
For employers, this means an increase in payroll costs — especially if super is paid on top of salaries rather than inclusive. We recommend business owners review employment contracts to determine if super is included on top of or included in salaries, update payroll systems to reflect the rate change and forecast the additional 0.5% cost for next year, as well as revisiting your budget to ensure your finances are adequately prepared. We also advise you avoid late payments, coming up below, as late super contributions incur the Superannuation Guarantee Charge (SGC), which is not tax-deductible.
Ceasing deductions for ATO interest charges
– Effective from 1 July 2025
From the same date: businesses will no longer be able to claim income tax deductions for interest charges on tax debts with the ATO.
This includes:
– General Interest Charge (GIC)
– Shortfall Interest Charge (SIC)
Previously, these interest amounts could be claimed as deductions, allowing for breathing room when tax payments were delayed. From July onwards, however, these charges will become non-deductible, effectively increasing the after-tax cost of falling behind on your ATO obligations.
As such, we recommend you stay on top of your tax deductions and consider using tax-specific bank accounts to set aside funds throughout the year.
At Tashly Consulting, we help businesses like yours stay ahead of regulatory changes and adapt your financial strategies with confidence. We are licensed BAS agents and can assist you with your payroll, BAS, and bookkeeping needs. We offer Bookkeeping Packages and if you need help tidying up your records or have fallen behind in your obligations. We can also provide Adhoc Consultations via zoom meeting, or face to face, for any queries you may have, as well as Xero training if you would prefer to keep your bookkeeping in-house but need help getting started.
Tashly Consulting Xero Bookkeepers Adelaide are Registered BAS Agents #86318001, and we are dedicated to providing seamless, high-quality, transparent bookkeeping services – If you would like any further information please contact us via telephone (08) 8121 4424 or via email to discover how the multi-award-winning team at Tashly Consulting can help you better manage your business bookkeeping.
Tashly Consulting Xero Bookkeepers Adelaide – Not your average Bean Counter!
Disclaimer: All or any advice contained in this blog/newsletter is of a general nature only & may not apply to your individual business circumstances. For specific advice relating to your specific situation, please contact your accountant or other professional adviser for further discussion.
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