Taking charge of upcoming employer obligations
As the end of the financial year has just passed, the ATO is reminding employers that they should check what they need to do and take note of the following upcoming key dates.
Pay as you go (‘PAYG’) withholding — From 1 July 2025, some withholding schedules and tax tables will be updated (but not all).
Employers should use the correct tax tables or the ‘tax withheld calculator’ on the ATO’s website to work out how much to withhold from their employees’ payments. They should update their payroll software to withhold, report and pay the correct amount of tax.
Single touch payroll (‘STP’) reporting — Employers should complete an STP finalisation declaration by 14 July 2025, and also lodge a finalisation declaration for all employees they have paid and reported through STP, so they have the right information to lodge their income tax returns.
Employers should also ‘finalise’ all employees they have paid in the financial year, even those they have not paid for a while, such as terminated employees.
Finally, employers who change payroll software providers should finalise their records before they change, to ensure they and their employees have accurate information during tax time.
NB Employers also need to pay all SG contributions for the June 2025 quarter by 28 July 2025.
Reminder of June 2025 Quarter Superannuation Guarantee (‘SG’)
Employers are reminded that employee super contributions for the quarter ending 30 June 2025 must be received by the relevant super funds by Monday, 28 July 2025. If the correct amount of SG is not paid by an employer on time, they will be liable to pay the SG charge, which includes a penalty and interest component.
The SG rate has increased to 12% from 1 July 2025.
TBAR for June quarter due 28 July
All SMSFs must report relevant transfer balance account (‘TBA’) events using transfer balance account reporting (‘TBAR’). All events must be reported regardless of the member’s total superannuation balance.
NB TBA events include starting or commuting a retirement phase pension.
TBARs for the June quarter are due by 28 July 2025. If no TBA event occurred during the quarter, no lodgment is required.
If an SMSF does not lodge a TBAR by the due date, it may result in compliance action and penalties and could also negatively impact a member’s TBA.
Changes to car depreciation and luxury car tax from 1 July
The car limit for the 2026 income year is $69,674.This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes and they first use or lease the car in the 2026 income year.
If a taxpayer is buying a car and the price is more than the car limit, the highest input tax (GST) credit they can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2026 income year, the highest input tax credit they can claim is $6,334 (i.e., one-eleventh of $69,674).
The luxury car tax (‘LCT’) threshold for the 2026 income year is $91,387 for fuel-efficient vehicles, and $80,567 for all other luxury vehicles.
Input tax credits need to be claimed within the four-year time limit. A taxpayer cannot claim an input tax credit for luxury car tax when they buy a luxury car, even if they use it for business purposes.
Take charge of your obligations — don’t get caught out.
Make sure your payroll, STP reporting, SG payments and car depreciation claims are accurate and on time. If you need help navigating these changes, get in touch with the Omnis team in West Perth on 08 9380 3555.
