Tax Matters Autumn 2025: Your Ultimate Guide to Tax Strategy, Vehicle Deductions, and Asset Planning

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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 dives deep into each topic covered in the Tax Matters – Autumn 2025 newsletter, expanding them into actionable strategies.

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1. Why You Shouldn’t Rely on Google or ChatGPT for Tax Advice

While online tools and AI have become more popular for quick answers, tax advice isn’t one-size-fits-all. Every taxpayer's situation is different. Relying on generic advice can result in:

• Missed deductions
• Incorrect claims
• 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.

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2. Work-From-Home Fixed Rate Method Increases to 70c per Hour

Effective from 1 July 2024, the ATO has increased the fixed rate method from 67c to 70c per hour. Here's what’s included:

Covered Expenses:

• Electricity & gas
• Internet and phone
• Stationery and consumables

Additional Deductibles:

• 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, diary)
• Retain at least one document for each type of included expense

Pro Tip: For some, the actual cost method may provide a higher deduction. We can help you determine the best approach.

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3. Depreciating Assets: Understanding Your Claims

Depreciation lets you deduct the cost of business assets over time. Examples include:

Eligible Assets:

• Laptops and computers
• Office furniture
• Tools and equipment
• Vehicles (subject to rules)

Not Eligible:

• Land
• Goodwill (with some exceptions)
• Trading stock

Small Business Benefits:

• Simplified depreciation pool
• Instant asset write-off (covered below)

Example: A sole trader buys a $2,400 laptop. Over its 3-year life, deductions can be claimed using prime cost or diminishing value methods.

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4. Instant Asset Write-Off Extended for 2024–25

The government has extended the $20,000 instant asset write-off through to 30 June 2025.

What this means:

• Immediate deduction for assets <$20,000
• Applies to new or second-hand assets
• Must be installed and ready to use by EOFY

Use this to optimise your cash flow and reduce your taxable income.

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5. Plug-in Hybrid Electric Vehicles (PHEVs): FBT Exemption Ending

From 1 April 2025, the FBT exemption for PHEVs is ending unless:

You had:

• Private use before 1 April 2025, and
• A financially binding commitment in place

If not:

• FBT applies moving forward
• Changing employers or lease renewals void the exemption

We can help you calculate your new FBT exposure or explore alternative vehicle strategies.

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6. Purchasing a Commercial Vehicle in a Company

There are major tax implications depending on how a vehicle is classified:

Hiace Van vs Crew Cab Example:

• Hiace Van (1T+) → not a "car"
• Hiace Crew Cab (<1T) → classified as a "car"

Tax Effects:

• Cars are subject to a depreciation cap (approx. $67,000)
• Non-cars may claim full depreciation and GST input credit

Fringe Benefits Tax:

• Applies to cars using the statutory 20% method
• "Non-cars" use cents/km if private use is minimal

Private Use Threshold:

• <1,000 km total
• <200 km any single trip

Electric Vehicles (EVs):

• Some qualify for FBT exemptions if they are classified as "cars"
• Financing may preserve exemption even if rules change

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7. Small Business CGT Concessions Explained

When selling business assets, you might be eligible for four key CGT concessions:

1. 15-Year Exemption
2. 50% Active Asset Reduction
3. Retirement Exemption
4. Rollover Relief

Eligibility Checklist:

• Active asset test met
• Turnover <$2 million or net assets <$6 million
• Correct structure (sole trader, trust, company)
• Meets age/retirement rules if applicable

Common Mistakes to Avoid:

• Misapplying rollover relief
• Using wrong concession codes
• Incorrect ownership dates
• Exceeding turnover threshold unknowingly

These concessions can eliminate or defer significant tax. Speak to us before any sale.

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8. 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:

• GIC: 11.17%
• SIC: 7.17%

Implication:

• No longer claimable as deductions
• True financial cost increases – especially for high earners

Action Steps:

• Settle outstanding ATO debts before 30 June 2025
• Review payment arrangements
• Update cash flow forecasts

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9. Our Approach: Tailored Advice for Long-Term Benefits

Whether it’s 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 & Taxation
• Business Structuring & Advisory
• Virtual CFO & Bookkeeping
• Xero & MYOB Integration

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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.

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Let’s work together this tax season to ensure your strategy is smart, compliant, and profitable.

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📞 Contact Us Today
👉 Trinity Accounting Practice
✅ Accounting Firm in Beverly Hills
☎️ 02 9543 6804
📍 159 Stoney Creek Road Beverly Hills NSW 2209
🌐 www.trinitygroup.com.au
📅 Weekend & after-hours appointments available!
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