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:

• 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.

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