Recent Tax Laws That Are Now Official

Instant Asset Write-Off

The instant asset write-off for assets under $20,000 was extended to 30 June 2025. Small businesses with turnover under $10 million can claim immediate deductions for assets put to use before then.

Potential Action: Purchase assets before 30 June 2025 to reduce taxable income.

Non-deductibility of General Interest Charges

From 1 July 2025, ATO General Interest Charges (GIC), which vary but are currently around 11.7%, become non-deductible.

Potential Action: Pay down as much ATO debt as possible before this deadline.

Tax Cuts

From 1 July 2026, the tax rate for $18,201–$45,000 income drops to 15%, then 14% from 1 July 2027.   For someone earning more than $45,000, this reduces taxes by about $268 in 2027, then another $268 in 2028.

If you have any questions about the above changes, please do not hesitate to contact the team at Vawdrey Axton Turner.