Topic for Practice Updates - June 2025

End of Financial Year Preparation - Key Deadlines Approaching 

As 30 June 2025 approaches, key ATO deadlines are in focus. 

• 5 June: Final date to lodge 2024 returns for some entities under the concessional arrangement. 

• 21 June: Lodge and pay May 2025 monthly BAS. 

• 25 June: Lodge and pay 2025 FBT annual return (electronic). 

• 30 June: Super guarantee contributions must be received by funds to claim deductions. 

Now’s the time to finalise tax planning, review franking accounts, trust distributions, and asset write-offs. 

Superannuation Fund Performance Test Results Released 

APRA (Australian Prudential Regulation Authority) has released the annual performance test results for MySuper products, with several funds failing to meet the benchmark returns. Trustees of underperforming funds must notify members and demonstrate how they will improve performance or consider member transfer options. 

For SMSF trustees, this highlights the importance of regular performance reviews and investment strategy assessments. Consider whether your fund's investment approach remains appropriate for members' circumstances and retirement objectives. The ATO expects SMSF trustees to maintain contemporaneous documentation of investment decisions and strategy reviews. 

Cryptocurrency and Digital Assets: ATO Focus Areas 

The ATO has intensified its data matching for cryptocurrency transactions, with expanded reporting from digital currency exchanges. Taxpayers involved in cryptocurrency trading, mining, or DeFi activities should ensure comprehensive record-keeping of all transactions. 

Recent court decisions have clarified the CGT treatment of various digital asset arrangements. Personal use asset exemptions may apply for transactions under $10,000, but business trading activities remain fully taxable. Consider whether your digital asset activities constitute a business for tax purposes. 

• Upcoming Changes to Study and Training Loan Repayments 

• Proposed 20% Loan Reduction: A one-off 20% cut on existing HELP and related loans as of 1 June 2025 (pending legislation). 

• Indexation Adjustment: 3.2% for 1 June 2023 (reduced from 7.1%) and 4% for 1 June 2024 (reduced from 4.7%). 

• Higher Repayment Threshold: From 1 July 2025, repayments will only be applied to income above the minimum repayment threshold of $67,000 (subject to the passage of legislation). 

• TSL Renamed: Trade Support Loan is now called the Australian Apprenticeship Support Loan  (AASL) 

  
  

New GST returns for large businesses 

The ATO is introducing a Supplementary Annual GST Return for large businesses that have undergone GST assurance reviews. This tailored initiative is designed to support ongoing transparency and strengthen trust in GST reporting. 

• Applies to: Top 100 and Top 1,000 taxpayers with a history of GST assurance 

• First notices due: For early December balancers, notices to lodge were issued in May, with the return due by 21 August 2025. A full list of due dates is public on the ATO’s website. 

• Purpose: Streamlines future engagements with the ATO 

Ensure your finance team is aware of the new requirements and timelines. 

$20,000 Instant Asset Write-Off for 2024–25 

The Australian Government has extended the $20,000 instant asset write-off for the 2024–25 income year, providing small businesses with continued access to immediate tax deductions.  

What’s Included? 

• Eligible businesses: Aggregated annual turnover under $10 million 

• Deduction limit: Instantly deduct the full cost of each eligible asset under $20,000 

• Asset usage window: Assets must be first used or installed between 1 July 2024 and 30 June 2025 

• New and second-hand assets: Both are eligible (with some exclusions) 

This measure allows businesses to write off multiple assets under the $20,000 threshold, helping improve cash flow and reduce taxable income. 

Assets costing $20,000 or more can still be added to the small business depreciation pool, offering ongoing tax benefits. 

Small businesses may wish to plan purchases strategically before 30 June 2025 to take advantage of this deduction. 

ATO Issues Interim Statement on Meal Expenses Case 

The ATO (the Australian Taxation Office) has issued an interim decision impact statement following the Administrative Appeals Tribunal's ruling in Shaw and Commissioner of Taxation [2025] ARTA 224. The Tribunal found that certain meal expenses incurred by the taxpayer were deductible. Despite this, the ATO has clarified that it does not intend to revise its existing public rulings on work-related travel expenses and meal deductions. The ATO maintains that meal expenses are generally considered private and non-deductible unless specific exceptions apply, such as meals consumed while traveling overnight for work purposes or when an award of overtime meal allowance is received. This development may lead to significant changes in how meal expense deductions are assessed, prompting tax professionals to closely monitor the outcome and advise clients accordingly. 

EOFY Checklist for Trustees – ATO’s Top 5 Reminders 

As 30 June approaches, the ATO has outlined 5 key actions all trustees should take to stay compliant: 

• Review your trust deed – Ensure trust income is defined correctly for distribution. 

• Confirm beneficiary eligibility – Only distribute to those listed in the deed, with valid TFNs. 

• Make resolutions by 30 June – Late resolutions could see the trustee taxed at the top marginal rate. 

• Check family trust elections (FTE) or interposed entity elections (IEE)/elections – Keep distributions within the nominated family group to avoid 47% tax. 

• Keep detailed records – Trustees are personally responsible for compliance. 

  
  

Need help preparing your trust for EOFY? Reach out to Lynden Group for expert guidance on resolutions, distributions, and trust compliance. 

Book your tax consultation now at (03) 8548 1843 or email us at info@lyndengroup.com.au