Here’s a quick roundup of some key updates from the past few weeks that could affect small businesses, sole traders, and individuals heading into the second half of 2025.
🏛️ 1. Federal Budget 2025–26: Key Small Business Takeaways
The Federal Budget was handed down last month, and while it focused heavily on cost-of-living relief and housing, there were some wins for small businesses:
- Instant Asset Write-Off Extended: The $20,000 instant asset write-off for eligible small businesses (turnover under $10 million) has been extended until 30 June 2026.
- Energy Efficiency Incentives: Rebates and low-interest financing are being rolled out to support upgrades to energy-efficient equipment for small businesses.
- Cybersecurity Grants: A new grant program will open in September, helping small businesses boost their digital security and compliance.
📈 2. ATO Focus Areas for 2025–26
The ATO has outlined its key areas of focus this year:
- Unpaid Super Guarantee: The ATO is cracking down on late or unpaid super, with more audits expected and real-time reporting now standard through Single Touch Payroll (STP).
- Rental Property Deductions: If you own an investment property, expect tighter scrutiny on interest, repairs, and travel claims. Keep good records!
- Work-From-Home Claims: The new fixed-rate method (67 cents/hour) is now in place, with stricter record-keeping required — like hours logged and shared expenses.
📊 3. Interest Rates on Hold – But for How Long?
The Reserve Bank of Australia (RBA) held the cash rate steady at 4.35% for the third month in a row, signalling cautious optimism as inflation eases slightly. However, economists warn further hikes aren’t off the table if inflation doesn’t drop more decisively by spring.
This has flow-on effects for:
- Home Loan Holders: Fixed rates remain higher than variable, but some lenders are sharpening their offers — it’s worth reviewing.
- Business Loans & Credit Lines: Now’s a good time to revisit loan structures and consider locking in competitive rates before any further rises.
Need Help Understanding How These Changes Affect You?
We’re across all the updates and ready to help you adapt. Whether it’s planning your tax strategy, reviewing your loans, or understanding your obligations, just give us a call.
📞 02 4393 3539
📧 coastalaccountancy.com.au/contact-us