The new financial year brings a range of updates across tax and superannuation.
For businesses, not-for-profits, and individuals, understanding these changes early helps you plan with more confidence and avoid last-minute adjustments.
This summary outlines the key accounting and tax changes from recent Federal Budget announcements and what they may mean in practice.
Key tax changes for businesses
Company tax rate reduction
For eligible base rate entities, the company tax rate has reduced to 25%.
This may improve after-tax cash flow and should be considered in your planning and forecasting.
Temporary full expensing extension
Eligible businesses can continue to immediately deduct the full cost of certain depreciable assets.
This applies to assets acquired and ready for use within the relevant timeframe.
While this can support investment decisions, the timing of purchases should still align with your broader financial strategy.
Loss carry-back extension
Eligible companies can carry back tax losses to offset profits from earlier years.
This may result in a refundable tax offset, depending on prior tax paid and current eligibility.
Intangible asset depreciation
Businesses can self-assess the effective life of certain intangible assets, such as software and intellectual property.
This provides more flexibility but requires careful judgement and documentation.
Superannuation updates
The Superannuation Guarantee (SG) rate continues to increase gradually, with a planned pathway to 12%.
Employers should:
- review payroll systems to ensure correct SG rates are applied
- factor higher super contributions into budgeting
Changes to eligibility thresholds and contribution rules may also affect workforce planning.
Accurate payroll systems are essential to manage these updates.
Updates affecting not-for-profits
Income tax exemption reporting
Non-charitable not-for-profits with an active ABN may be required to report to the ATO on how they assess their income tax exemption status.
This increases transparency and reinforces the need for clear documentation.
Aged care and funding changes
Additional home care packages and adjustments to funding models may affect organisations operating in the aged care sector.
Changes to payment timing and reporting may also impact cash flow.
NDIS funding outlook
Additional funding has been allocated to the NDIS, with further reforms expected.
Organisations should monitor changes and assess how they may affect service delivery and reporting.
Changes for individuals
Tax offsets and thresholds
Existing offsets, including the Low and Middle Income Tax Offset, continue to apply for the relevant period.
Any changes to tax rates or thresholds should be considered as part of personal tax planning.
Residency rules
Proposed updates to tax residency rules aim to simplify how residency is determined.
This may affect individuals with international work or travel arrangements.
Self-education expenses
Changes to deduction thresholds may allow greater access to self-education expense claims.
First Home Saver Scheme
Adjustments to contribution limits may provide additional flexibility for eligible individuals.
What this means in practice
While these changes create opportunities, they also require careful implementation.
Key areas to focus on include:
- reviewing your tax position and eligibility for concessions
- updating payroll and superannuation settings
- aligning asset purchases with your financial strategy
- ensuring compliance with new reporting requirements
Regular financial reviews, such as an NFP financial health check, can help ensure your systems and reporting remain aligned.
Common challenges
Organisations often experience:
- uncertainty around eligibility for tax measures
- delays in updating systems and processes
- misalignment between tax strategy and cash flow
Addressing these early can reduce compliance risk.
Start a conversation
Tax and superannuation changes can be complex, particularly when multiple updates apply at once.
Hopscotch Accounting supports not-for-profits and businesses with practical guidance, clear systems, and structured financial planning.
Start a conversation to understand how these changes apply to your organisation.
FAQ’s
Temporary full expensing allows eligible businesses to immediately deduct the full cost of certain depreciable assets, subject to current rules and timeframes.
Employers must apply updated Superannuation Guarantee rates and ensure payroll systems reflect current contribution requirements.
Some non-charitable not-for-profits may need to report to the ATO on how they assess their eligibility for income tax exemption.
