As we roll into the 2025 tax season, the ATO has introduced several key updates that could directly impact how much tax you pay — and how much refund you’re entitled to. Whether you’re a salaried employee, a small business owner, or a property investor, these changes matter.
Here’s what’s new — and what you should do about it.
1. The Fixed-Rate Method for WFH Deductions Has Changed
If you work from home, you’ll need to rethink how you claim. The ATO’s revised fixed-rate method now allows you to claim 67 cents per hour worked at home — but you can no longer claim separate deductions for internet, electricity, or stationery unless you use the actual cost method.
What to do: Keep accurate records of your work hours and speak to your tax consultant to decide which method gives you the better deduction.
2. Crypto & Share Transactions Are Under Stricter Scrutiny
ATO data-matching programs are now fully integrated with major crypto exchanges and trading platforms. If you bought, sold, or even swapped digital assets, these are now considered capital gains events and must be reported.
What to do: Gather your transaction reports and discuss your CGT position with a tax expert before lodging.
3. Rental Property Deductions Must Be Justified
The ATO is doubling down on incorrect rental claims. Common red flags include:
- Claiming interest on personal use loans
- Overstated repairs vs. capital improvements
- Vacancy periods are not being properly accounted for
What to do: Make sure you have documentation for every deduction. Tax NextGen can help you organise a compliant rental schedule.
4. Changes to LMITO (Low & Middle Income Tax Offset)
The LMITO has officially ended, and many low to middle-income earners may notice a smaller refund in 2025. This isn’t an error — the offset has been discontinued by the government.
What to do: Don’t panic. Speak to your consultant to explore alternative deductions you might be eligible for, including work-related expenses and offsets for dependents or study.
Need Help Navigating These Changes?
We know it’s a lot to take in — and the last thing you want is to lose your refund over technicalities.
That’s where we come in.
Book your free 15-minute consultation with Tax NextGen. We’ll help you understand exactly how these updates affect your tax return — and how to maximise your refund, the compliant way.
