Tax changes can hit when you least expect them, especially when you’re busy running a business, managing investments, or just keeping life on track.
But when the ATO updates its guidelines, those changes can directly affect how you report income, claim deductions, or plan for the year ahead.
We know it can be frustrating trying to interpret complex tax updates on your own. What applies to you? What’s changed? And what do you actually need to do?
That’s where we come in. As your local accountant Melbourne, we make it simple.
In this article, we’ll walk you through the latest ATO guidelines in plain English, so you know what’s changed, what to watch for, and how to move forward with confidence.
For personalised advice, contact the team at Foresight Accounting today. With decades of experience, a proactive mindset, and a genuine focus on your long-term success, we make tax simple, strategic, and stress-free.
Why the Latest Updates Matter
ATO guidelines don’t just change for the sake of it; they’re a response to shifting economic conditions, policy reforms, and the ATO’s increased focus on compliance. What might seem like a small update can have significant implications for how you operate, report, or structure your finances.
For business owners, it could mean rethinking how you manage cash flow, report employee entitlements, or handle deductions. For property investors, it might impact how rental income and expenses are treated. And for individuals, it could affect everything from work-related claims to superannuation reporting.
Understanding these updates early puts you in a stronger position to plan ahead, rather than scrambling at tax time or risking non-compliance.
With the right advice and a proactive approach, you can adapt quickly, stay compliant, and take advantage of any opportunities the changes might bring.
Key Updates for Individuals in 2024 to 25
Here are the most important changes and new rules affecting individual taxpayers in the 2024–25 year:
Work‑From‑Home Fixed Rate
You can now claim 70 cents per hour for your work‑from‑home expenses under the fixed‑rate method.
Cents per Kilometre car Claims
If you use the cents per kilometre method for work‑related car expenses, the rate is now 88 c/km.
Electric Vehicle Home Charging Rate
From 1 July 2024, owners of plug‑in hybrid electric vehicles (PHEVs) may use a home charging rate of 4.2 cents per km to calculate electricity costs, if certain conditions are met.
For instance, if you use the vehicle to earn assessable income, keep records, and use the logbook method or actual cost method. Zero‑emissions EV owners may also be eligible for this deduction, provided they meet the requirements.
Lump sum Payment in Arrears and Medicare Levy
Starting 1 July 2024, lump sum payments in arrears (LSPIA) will be excluded when calculating your Medicare levy liability if you qualify under the eligibility rules.
Changes to Withholding on Property Sales
From 1 January 2025:
- The foreign resident capital gains withholding (FRCGW) rate increases to 15% and the threshold for withholding is removed.
- Australian resident property vendors must provide a clearance certificate to avoid withholding.
- If a clearance certificate is not given, the withheld amount can be claimed on your tax return.
Expanded Eligibility for tax Help
If you earn $70,000 or less and have relatively simple tax affairs, you are now eligible for free assistance via the ATO’s Tax Help program (previous limit was $60,000).
Holding Rule for tax Refunds
Under the Treasury Laws Amendment (2024), the ATO may retain refunds or credits for up to 90 days from when they become payable.
To avoid delays:
- Make sure your bank account details (BSB, account number) are accurate and up to date
- The ATO won’t retain refunds if you submit valid Australian financial institution details with your return
Proposed $1,000 Instant tax Deduction (not yet Effective)
As part of policy proposals, a $1,000 instant deduction for work‑related expenses was floated (as of April 2025), but it does not apply for the 2024–25 year.
Build-to-Rent Incentives
Tax incentives are now available for owners and investors in eligible build-to-rent developments, including:
- An accelerated 4% capital works deduction
- A 15% concessional final withholding tax rate on certain fund payments relating to rental income and capital gains
Need help with your tax return? We make it easy.
Our taxation services help you understand what’s changed, what you can claim, and how to stay compliant, without the stress. Book a consultation with your Melbourne accountant today.
Avoiding Common Compliance Pitfalls
ATO guidelines don’t just tell you what you can do; they also highlight what the ATO is paying closer attention to. Each year, we see clients get caught out by simple mistakes that could have been avoided with the right advice.
Here are some common traps to watch for:
- Incorrect work-from-home claims: Make sure you have proper records (like a log of hours worked) and only claim what you’re entitled to.
- Rental property deductions: The ATO is closely reviewing claims for repairs, interest expenses, and capital works. If your property is vacant or partially used, deductions may be limited.
- Crypto and investment income: These are no longer flying under the radar. You must declare all gains or losses, even if your platform is overseas.
- Omitted income: Leaving out income from side gigs, interest, or government payments is a red flag for the ATO’s data-matching systems.
- Trust distributions: If you’re a beneficiary or trustee, make sure distributions are documented correctly and in line with the latest tax rulings.
The safest approach? Stay proactive and get personalised advice. It’s far easier (and more cost-effective) to get it right the first time than to fix things after an ATO review.
The right tax structure can help you minimise tax, protect assets, and stay compliant and consistent. At Foresight Accounting, we’ll help you set it up properly from the start with our Establishment of Tax Structures service.
How Foresight Accounting can Help
Tax rules change, but our approach doesn’t. Whether you're a business owner, property investor or individual taxpayer, we help you understand what applies, what to act on, and how to stay compliant with confidence.
Here’s how we support you:
Business Accounting
We review your business structure, manage accounting and payroll, and provide strategic advice.
Tax Reports and Returns
We prepare accurate, timely tax returns and reports to keep you compliant, avoid penalties, and ensure you're claiming everything you’re entitled to.
SMSF (Self‑Managed Superannuation Funds)
From establishment to compliance, we guide you through your superannuation strategy.
Staying Proactive With the ATO
When it comes to tax, reacting late can cost you, whether it’s missed deductions, ATO scrutiny, or avoidable stress at year-end. The most successful clients we work with have one thing in common: they stay proactive.
Understanding the latest ATO guidelines isn’t just about compliance; it’s about using the rules to your advantage. With the right support and timely advice, you can make smarter financial decisions all year round.
If you’re unsure how the latest ATO updates affect you, we’re here to help. At Foresight Accounting, we take the guesswork out of tax with clear advice, proactive planning, and year-round support.
BOOK NOW FOR AN OBLIGATION-FREE CONSULTATION
Understanding the Latest ATO Guidelines
Tax changes can hit when you least expect them, especially when you’re busy running a business, managing investments, or just keeping life on track.
But when the ATO updates its guidelines, those changes can directly affect how you report income, claim deductions, or plan for the year ahead.
We know it can be frustrating trying to interpret complex tax updates on your own. What applies to you? What’s changed? And what do you actually need to do?
That’s where we come in. As your local accountant Melbourne, we make it simple.
In this article, we’ll walk you through the latest ATO guidelines in plain English, so you know what’s changed, what to watch for, and how to move forward with confidence.
For personalised advice, contact the team at Foresight Accounting today. With decades of experience, a proactive mindset, and a genuine focus on your long-term success, we make tax simple, strategic, and stress-free.
Why the Latest Updates Matter
ATO guidelines don’t just change for the sake of it; they’re a response to shifting economic conditions, policy reforms, and the ATO’s increased focus on compliance. What might seem like a small update can have significant implications for how you operate, report, or structure your finances.
For business owners, it could mean rethinking how you manage cash flow, report employee entitlements, or handle deductions. For property investors, it might impact how rental income and expenses are treated. And for individuals, it could affect everything from work-related claims to superannuation reporting.
Understanding these updates early puts you in a stronger position to plan ahead, rather than scrambling at tax time or risking non-compliance.
With the right advice and a proactive approach, you can adapt quickly, stay compliant, and take advantage of any opportunities the changes might bring.
Key Updates for Individuals in 2024 to 25
Here are the most important changes and new rules affecting individual taxpayers in the 2024–25 year:
Work‑From‑Home Fixed Rate
You can now claim 70 cents per hour for your work‑from‑home expenses under the fixed‑rate method.
Cents per Kilometre car Claims
If you use the cents per kilometre method for work‑related car expenses, the rate is now 88 c/km.
Electric Vehicle Home Charging Rate
From 1 July 2024, owners of plug‑in hybrid electric vehicles (PHEVs) may use a home charging rate of 4.2 cents per km to calculate electricity costs, if certain conditions are met.
For instance, if you use the vehicle to earn assessable income, keep records, and use the logbook method or actual cost method. Zero‑emissions EV owners may also be eligible for this deduction, provided they meet the requirements.
Lump sum Payment in Arrears and Medicare Levy
Starting 1 July 2024, lump sum payments in arrears (LSPIA) will be excluded when calculating your Medicare levy liability if you qualify under the eligibility rules.
Changes to Withholding on Property Sales
From 1 January 2025:
Expanded Eligibility for tax Help
If you earn $70,000 or less and have relatively simple tax affairs, you are now eligible for free assistance via the ATO’s Tax Help program (previous limit was $60,000).
Holding Rule for tax Refunds
Under the Treasury Laws Amendment (2024), the ATO may retain refunds or credits for up to 90 days from when they become payable.
To avoid delays:
Proposed $1,000 Instant tax Deduction (not yet Effective)
As part of policy proposals, a $1,000 instant deduction for work‑related expenses was floated (as of April 2025), but it does not apply for the 2024–25 year.
Build-to-Rent Incentives
Tax incentives are now available for owners and investors in eligible build-to-rent developments, including:
Need help with your tax return? We make it easy.
Our taxation services help you understand what’s changed, what you can claim, and how to stay compliant, without the stress. Book a consultation with your Melbourne accountant today.
Avoiding Common Compliance Pitfalls
ATO guidelines don’t just tell you what you can do; they also highlight what the ATO is paying closer attention to. Each year, we see clients get caught out by simple mistakes that could have been avoided with the right advice.
Here are some common traps to watch for:
The safest approach? Stay proactive and get personalised advice. It’s far easier (and more cost-effective) to get it right the first time than to fix things after an ATO review.
The right tax structure can help you minimise tax, protect assets, and stay compliant and consistent. At Foresight Accounting, we’ll help you set it up properly from the start with our Establishment of Tax Structures service.
How Foresight Accounting can Help
Tax rules change, but our approach doesn’t. Whether you're a business owner, property investor or individual taxpayer, we help you understand what applies, what to act on, and how to stay compliant with confidence.
Here’s how we support you:
Business Accounting
We review your business structure, manage accounting and payroll, and provide strategic advice.
Tax Reports and Returns
We prepare accurate, timely tax returns and reports to keep you compliant, avoid penalties, and ensure you're claiming everything you’re entitled to.
SMSF (Self‑Managed Superannuation Funds)
From establishment to compliance, we guide you through your superannuation strategy.
Staying Proactive With the ATO
When it comes to tax, reacting late can cost you, whether it’s missed deductions, ATO scrutiny, or avoidable stress at year-end. The most successful clients we work with have one thing in common: they stay proactive.
Understanding the latest ATO guidelines isn’t just about compliance; it’s about using the rules to your advantage. With the right support and timely advice, you can make smarter financial decisions all year round.
If you’re unsure how the latest ATO updates affect you, we’re here to help. At Foresight Accounting, we take the guesswork out of tax with clear advice, proactive planning, and year-round support.
BOOK NOW FOR AN OBLIGATION-FREE CONSULTATION
Financial Management for Medical Professionals
As a medical professional, your focus should be on your patients, not tax returns and spreadsheets. However, the reality is that sound financial management is crucial for managing your practice, having patients return, and ensuring long-term financial security. That’s where working with a medical accountant can make all the difference.
This article explores what medical professionals need to know about financial management in order to make informed financial decisions. For personalised advice, contact our team at Foresight Accounting today.
The Unique Nature of Medical Practice Finances
All businesses manage their workflows and systems differently. In medical practices, medical professionals also need to juggle strict compliance requirements, complex payment and billing systems, and other unique challenges. This means that medical professionals need effective financial management that goes beyond basic bookkeeping.
Key Areas of Financial Management in Healthcare
Managing finances in healthcare calls for a forward-thinking, strategic mindset. Requiring insight into and understanding of the complex healthcare system, it’s important to understand these key areas when it comes to financial management:
1. Planning
Before you can improve your financial situation, you need a clear picture of where you stand. Regularly evaluating your practice’s performance, along with planning for future growth, is essential. This includes looking at profitability, assessing the viability of your current services, and considering the financial impacts of expanding or restructuring.
2. Budgeting and Forecasting
Budgeting is the foundation of your practice’s financial management. It sets your expectations around income and helps you make decisions about equipment, staff, and other areas of your practice. Forecasting takes this a step further by helping you anticipate trends, seasonal changes, and unexpected disruptions to stay one step ahead.
3. Generating Income
Finding ways to generate more income doesn’t always mean going out of your way to find new patients. It’s about being strategic by doing things like reviewing your fee structure, offering new services, or implementing telehealth. Your goal should be to support your mission and your patients while strengthening your bottom line.
4. Compliance
Australia’s healthcare system is governed by strict regulations. Compliance is compulsory when it comes to areas like Medicare billing, patient privacy, and insurance. Staying abreast of these rules and understanding how they affect your financial operations is vital to avoid liabilities and also maintain trust with your patients.
5. Supply Chain Management
Every GP, specialist, and allied health professional relies on timely access to medical equipment and supplies. Managing your supply chain means keeping costs down, avoiding waste, and ensuring continuity of care. To ensure your supply chain runs smoothly, you should regularly negotiate supplier contracts, review purchasing patterns, and have a contingency plan for potential shortages or price increases.
6. Cash Flow Forecasting
Cash flow isn’t just what’s in the bank today, but rather knowing what is coming in and going out over time. Forecasting your cash flow allows you to know how much you need to set aside for wages, tax, and other financial obligations, so you don’t end up in the red. It also helps to identify future gaps so you can be proactive about your finances, instead of reacting when it may be too late.
7. Financial Risk Management
Healthcare itself comes with risks, including financial. Having plans in place to identify, monitor, and mitigate these risks is crucial in healthcare financial management. This includes insurance, backup systems, cash flow contingency plans, succession planning, and more.
Why Work With a Medical Accountant?
With many financial areas to consider on top of your clinical responsibilities, it’s easy to overlook or miss key tasks.
This is where a medical accountant can help. By providing financial support tailored to your profession, they can help you make smarter decisions and ultimately focus more on your patients.
Working with a medical accountant offers:
Gain Financial Foresight into Your Practice
Located in Melbourne, our team of medical accountants works with medical professionals to create the correct tax structure, manage tax returns, assist with self-managed superannuation funds, and more. Book your obligation-free consultation today.
End of Financial Year Tax Strategies
As the end-of-financial-year approaches, it’s more important than ever to assess your tax plans or start actioning new ones. In Australia, poor taxation planning means more than simply missing out on valuable deductions; it could result in costly fines and penalties.
Effective financial year tax planning might be the difference your business needs to succeed and grow. In this article, we’ll outline the top strategies you should use to put your business in the best position.
For personalised business accounting and end-of-financial-year taxation advice, contact our team at Foresight Accounting today.
The Financial Year and Common Practice
In Australia, the financial year runs from July 1 to June 30, and it’s crucial to lodge your returns at least a few months prior to the end date. Your specific due date will depend on your business structure.
To prepare for the end of financial year, it’s common practice for businesses to employ year-round recordkeeping services. These are vital so that you can track your finances accurately and compile and submit them on time.
Likewise, many businesses may try to plan ahead. This means setting aside money to invest in software that streamlines bookkeeping, as well as taking full advantage of tax deductions and business write-offs.
However, to do so, you will need a thorough understanding of how the tax system works to ensure compliance. This is why so many businesses rely on a professional business accountant for advice and support.
The Tax Strategies You Need
While your business taxes may be overwhelming, there are a few key strategies you can employ to better manage your finances and protect your assets.
1. Submit Asset Write-offs
The Government has offered an instant $20,000 asset write-off for small businesses until June 30 2025. If your assets were acquired and used prior to this date, they can be submitted for a deduction.
2. Comply With Division 7A
Division 7A rules apply to company structures and trusts. These rules are a provision from the Income Tax Assessment Act that prevents businesses from using company funds for private purposes or for distribution between shareholders and associates.
Failing to comply with Division 7A exposes the shareholder or associate to potentially costly taxation consequences.
3. Superannuation Strategies
Make any super contributions at least a week prior to June 30. By doing so, you can claim a tax deduction for this financial year. For the 2024-2025 financial year, the superannuation concessional contribution cap is $30,000. This is the maximum amount you can pay without paying extra tax.
By doing so, you may be able to reduce your taxable income through deductible contributions and benefit from a lower tax rate for contributions. In addition to the tax benefits, adding to your superannuation is a great way to continue building wealth.
4. Conduct an In-depth Review
Preparation is the best strategy. When preparing for the end of the financial year, it’s crucial to conduct a thorough review of your business and any debts you may have.
In the case of debts, if they are irrecoverable, you may be able to write them off and claim them as a deduction.
Furthermore, assessing your business structure may also give you a leg up in terms of tax. There are different taxation rules that apply to various types of bodies, such as sole traders, partnerships, companies, and trusts.
Along with different taxation rules, each structure comes with its own advantages and disadvantages. Understanding what each is and how they apply to you may give you the edge you need when handling your taxes.
The Advantages of Business Accounting Melbourne
Taxation can be incredibly complex, with numerous rules that may seem contradictory without the right expertise. This is why up to 94% of small businesses rely on a business accounting agent to lodge their returns to stay compliant.
A business accountant is fully trained and experienced in navigating Australian taxation laws. They can assess your business, help you understand what applies to you, and prepare your business to submit accurate and timely tax returns and claims.
They can also utilise the latest taxation strategies, staying up to date with changing rules, to help keep your business in the best position. From recordkeeping to budgeting, financial planning and more, business accountants have the knowledge you need.
Get Expert Local Support With Foresight Accounting
At Foresight Accounting, we have extensive experience supporting a diverse range of industries. With a proactive approach to your financial concerns, we’ll help your business organise and plan ahead for your end-of-financial-year taxes. If you require any type of financial assistance, particularly as the end of the financial year approaches, our team is always here to help.
BOOK NOW FOR AN OBLIGATION-FREE CONSULTATION
Understanding Cash Flow Management in Your Business
Your cash flow is crucial to your business's success. Without the right management strategies, you could risk losing money and putting your business at risk.
In the last 12 months alone, 80% of small to medium businesses experienced a negative impact on their cash flow. This could significantly hamper operations, resulting in missed financial opportunities or declining profits.
While you may think it's simply keeping an eye on your accounts, it's actually a bit more complex than that.
This article outlines the key steps to effective cash flow management, helping you keep your business on track. For personalised business accounting advice, contact our team at Foresight Accounting today.
Understanding Cash Flow
The first step to better management is to understand what cash flow includes. Put simply, it refers to all payments
made into or out of your business.
This generally includes:
Including cash and digital payments
From products to employee salaries, rent and more
Whether from savings accounts or stocks and bonds
So when it comes to managing your cash flow, you’ll need to keep track of each of these elements.
Some key strategies and steps your business should take to stay ahead of the curve include:
1. Ensure Accurate Accounting
Business accounting is crucial for managing your cash flow. A professional business accountant can ensure your books are managed effectively and offer key insights on your current position and future prospects.
With this understanding, you can make more informed business decisions by investing or withholding funds where necessary to maximise revenue. It will likely also make it easier to identify wasted or redundant costs that can be reduced, streamlining your processes and mitigating losses.
At Foresight Accounting, our team brings years of accounting experience, providing tailored support to businesses of all sizes across various industries.
From meticulous bookkeeping to tailored financial planning, Superannuation management and more, we’ll help ensure your business is in the best position possible.
2. Credit Options
Offering credit options to your customers can increase the likelihood of purchase. It means a customer can ‘buy’ your product now and pay later. This not only increases your number of potential customers, but can also encourage them to spend more and more frequently.
However, employing credit options without significant oversight may put your business at further risk. Ensure you have tight credit terms and be proactive about following up payments, either with reminder invoices or clear terms and conditions.
Failing to follow these steps when employing credit for your customers could increase your chances of late payments or non-payment debts. This means your business will not enjoy a consistent cash flow, and may be left waiting.
This could slow down your own purchases, making it harder to restock or meet demand. If you already have a credit option, carefully review your policies to see if they can be improved.
3. Keep a Cash Reserve
While cash flow is crucial, ensuring you have access to funds when necessary may be even more important. Building a cash reserve ensures you can access a cushion of cash when unexpected expenses arise.
By planning your cash flow, you can consistently put aside small amounts of profit to steadily build a cash reserve. While this may ‘reduce’ your current profit, it ultimately safeguards you against future loss.
Currently, only 27% of Australian businesses maintain a cash reserve, which provides them with a competitive advantage in sustaining and supporting their operations. If your business has not established a cash reserve, consider how you can adjust your cash flow to do so.
4. Assess Your Inventory
Regularly check your inventory to determine which items are in high demand and which are occupying unnecessary storage space. Do your best to eliminate items that are in low demand and reorganise the timing and quantity of stock orders to avoid excess.
This not only frees up space but also ensures you are only spending what you need at any given time. Having responsive yet controlled stock allows you to increase your efficiency and cut redundancies.
In Australia, 58% of retail brands and D2C manufacturers had inventory accuracy below 80%. This often resulted in overstocking, costing these businesses an average of over $300,000, making it clear why accuracy is crucial to your bottom line.
Take One Step Closer to Financial Security with a Business Accountant Melbourne
Are you seeking a more effective way to manage your cash flow? Contact Foresight Accounting today for proactive, expert advice. With a free consultation in our Malvern office, we’ll get to know you and your business's needs to offer real support. Help your business thrive and book a meeting with our team.
BOOK NOW FOR AN OBLIGATION FREE ACCOUNTING CONSULTATION