Tax Matters Autumn 2025: Your Ultimate Guide to Tax Strategy, Vehicle Deductions, and Asset Planning
Introduction
As the 2024-25 financial year progresses, staying on top of key tax updates is essential for every business owner and individual. Trinity Accounting Practice brings you this comprehensive update to help you navigate complex areas like asset depreciation, vehicle purchases, CGT concessions, work-from-home claims, and more.
This guide expands on the key topics covered in our Tax Matters Autumn 2025 newsletter, turning them into actionable strategies you can implement before 30 June.
Why You Should Not Rely on Generic Online Tax Advice
While online tools and AI have become more popular for quick answers, tax advice is not one-size-fits-all. Every taxpayer's situation is different. Relying on generic advice can result in:
- Missed deductions that could have reduced your tax
- Incorrect claims that trigger compliance reviews
- ATO audits or penalties
- Unnecessary overpayments
At Trinity Accounting Practice, we take the time to understand your personal or business situation to give you tailored and accurate guidance.
Work-From-Home Fixed Rate Method Increases to 70 Cents Per Hour
Effective from 1 July 2024, the ATO has increased the fixed rate method from 67 cents to 70 cents per hour.
Covered Expenses
- Electricity and gas
- Internet and phone
- Stationery and consumables
Additional Deductibles (Claimed Separately)
- Depreciation on office equipment
- Cleaning of home office space
- Repairs and maintenance
Eligibility Requirements
- Keep a record of hours worked from home (digital calendar, timesheet, or diary)
- Retain at least one document for each type of included expense
For some taxpayers, the actual cost method may provide a higher deduction. We can help you determine the best approach based on your circumstances.
Depreciating Assets: Understanding Your Claims
Depreciation lets you deduct the cost of business assets over their effective life. This is a valuable deduction that many businesses underutilise.
Eligible Assets
- Laptops and computers
- Office furniture
- Tools and equipment
- Vehicles (subject to specific rules)
Not Eligible for Depreciation
- Land
- Goodwill (with some exceptions)
- Trading stock
Small Business Benefits
Small businesses can access the simplified depreciation pool and the instant asset write-off (covered below). For example, a sole trader who buys a $2,400 laptop can claim deductions over its three-year effective life using either the prime cost or diminishing value method.
Instant Asset Write-Off Extended for 2024-25
The government has extended the $20,000 instant asset write-off through to 30 June 2025. This means:
- Immediate deduction for eligible assets costing less than $20,000
- Applies to both new and second-hand assets
- The asset must be installed and ready to use by 30 June 2025
Use this provision to optimise your cash flow and reduce your taxable income. Speak with our business advisory team before making purchases to ensure eligibility.
Plug-in Hybrid Electric Vehicles: FBT Exemption Ending
From 1 April 2025, the Fringe Benefits Tax (FBT) exemption for plug-in hybrid electric vehicles (PHEVs) is ending unless:
- The vehicle was in private use before 1 April 2025, and
- A financially binding commitment was in place before that date
If these conditions are not met:
- FBT applies to the vehicle going forward
- Changing employers or renewing leases will void the exemption
We can help you calculate your new FBT exposure or explore alternative vehicle strategies that may still offer tax benefits.
Purchasing a Commercial Vehicle in a Company
There are major tax implications depending on how a vehicle is classified. The distinction between a "car" and a "non-car" under tax law has significant consequences.
Classification Example
- A van with a carrying capacity of one tonne or more is not classified as a "car" for tax purposes
- A crew cab with a carrying capacity under one tonne is classified as a "car"
Tax Effects
- Cars are subject to a depreciation cost limit (approximately $69,674 for 2024-25)
- Non-cars may claim full depreciation and full GST input tax credits
Fringe Benefits Tax
- FBT applies to cars using the statutory 20% method
- Non-cars use cents per kilometre if private use is minimal
Private Use Threshold for Non-Cars
- Less than 1,000 km total private use per year
- No single private trip exceeding 200 km
Electric Vehicles
Some EVs qualify for FBT exemptions if they are classified as cars. Financing arrangements may preserve the exemption even if rules change in future.
This is one of the more complex areas of tax planning, particularly for construction and trades businesses that rely heavily on vehicles. We can model the best approach for your situation.
Small Business CGT Concessions Explained
When selling business assets, you might be eligible for four key CGT concessions:
- 15-Year Exemption: Complete exemption if you have owned the asset for 15 years or more and meet certain conditions
- 50% Active Asset Reduction: Reduces the capital gain by 50% after applying the general CGT discount
- Retirement Exemption: Exempt up to $500,000 of capital gains over your lifetime
- Rollover Relief: Defer the capital gain if you acquire a replacement asset
Eligibility Requirements
- Active asset test met
- Turnover under $2 million or net assets under $6 million
- Correct structure (sole trader, trust, or company)
- Age and retirement rules met where applicable
Common Mistakes to Avoid
- Misapplying rollover relief
- Using incorrect concession codes in the tax return
- Getting ownership dates wrong
- Exceeding the turnover threshold unknowingly
These concessions can eliminate or defer significant tax. Speak to our tax team before any sale to ensure you maximise the available concessions.
GIC and SIC No Longer Tax Deductible from 1 July 2025
Effective 1 July 2025, the General Interest Charge (GIC) and Shortfall Interest Charge (SIC) are no longer deductible.
Current rates are:
- GIC: 11.17%
- SIC: 7.17%
The implications are significant:
- These charges can no longer be claimed as deductions
- The true financial cost of late payment increases, especially for higher earners
Action Steps
- Settle outstanding ATO debts before 30 June 2025 where possible
- Review existing payment arrangements
- Update cash flow forecasts to account for the increased cost
If you need to refinance ATO debt, our mortgage brokerage division, Nexus Wealth Partners, can help you explore business lending options where the interest remains tax deductible.
Our Approach: Tailored Advice for Long-Term Benefits
Whether it is maximising vehicle deductions, ensuring depreciation compliance, or planning a business exit using CGT relief, Trinity Accounting Practice provides expert, personalised strategies.
Our core services include:
- Accounting and taxation
- Business structuring and advisory
- Virtual CFO services through VCFO Australia
- Bookkeeping and Xero integration
Conclusion
The Australian tax landscape is constantly evolving, and staying ahead requires more than just filing on time. At Trinity Accounting Practice, we help you not only meet your obligations but maximise every opportunity for savings and growth.
Let us work together this tax season to ensure your strategy is smart, compliant, and effective.
Book a tax planning session with Trinity Accounting Practice today.
Trinity Accounting Practice
Accounting Firm in Beverly Hills, Sydney
Phone: 02 9543 6804
Address: 159 Stoney Creek Road, Beverly Hills NSW 2209
Website: www.trinitygroup.com.au
Weekend and after-hours appointments available
Our Virtual CFO division, VCFO Australia, provides strategic financial management, budgeting, forecasting, and compliance support for growing businesses and not-for-profits.
Learn more about what we offer
Discover the industries we specialise in
Read more tax and accounting tips on our blog
Our mortgage brokerage division, Nexus Wealth Partners Pty Ltd, assists clients with home loans, refinancing, and business finance.
Disclaimer: Information provided on this website is intended as a general overview only and does not replace professional advice tailored to your personal circumstances.
