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2025 Tax Time toolkit for small business

The Australian Taxation Office (ATO) Tax Time toolkit for small business provides useful information and guides for small businesses to prepare to lodge this tax time. The toolkit includes helpful information on:

  • home-based business expenses
  • motor vehicle expenses
  • travel expenses
  • digital product expenses
  • using business money and assets
  • pausing or permanently closing your business.

The best time to lodge

The best time to lodge is from late July. This allows the ATO to collect information on wages, bank interest, private health insurance, dividends, and government payments, and pre-fill these into your tax return. All you need to do is check your information and add anything that’s missing (including your deductions).

Those who wait for pre-fill generally won’t have their return held up in the system, and won’t need to amend it when the information arrives. Employers can assist by completing their end-of-financial-year Single Touch Payroll (STP) finalisations as soon as possible.

End-of-year finalisation through Single Touch Payroll

Employers must finalise their employees’ STP data by 14 July. If you have closely held payees, you may have a later due date for those payees only.

Remember to finalise all employees you’ve paid (including terminated employees) and to double-check you’re finalising STP data for the correct financial year – particularly if doing so in the first few days of July.

Know what you can and can't claim

Whether you work in an office, herd cattle on a farm, fix computers or mend broken bones – the ATO has a range of tailored occupation guides that can help you work out what you can and can’t claim at tax time. 

Remember there are 3 golden rules when it comes to claiming a deduction for a work-related expense: 

  1. You must have spent the money yourself and weren’t reimbursed.
  2. It must directly relate to earning your income.
  3. You must have a record (usually a receipt) to prove it.

Working from home deduction changes

If you or your employees have been working from home, there are two ways to calculate deductions this tax time – the fixed rate method, or the actual cost method. 

For the 2024-25 income year, the fixed rate for working from home expenses is 70 cents for every hour you work from home. This rate covers specific expenses such as electricity, internet and phone, you can also separately claim a deduction for the work-related use of technology and office furniture.

If you don't use the fixed rate method, you can claim the actual expenses you incurred while working from home.

Starting the new financial year on the right foot

Now is a good time to check if there are any deductions or concessions that you can use when you lodge your income tax return.

You could be eligible for simplified depreciation rules, immediate deductions for pre-paid expenses or the instant asset write off. These can help you reduce your tax bill and save you time!

Super guarantee rate change

The super guarantee rate will increase to 12% on 1 July. This means you need to calculate SG contributions at 12% for your eligible workers for payments of ordinary time earnings you make from this date. Ensure you pay your worker’s super contributions on time, in full and to the right fund.

Keep your account secure with a Digital ID

The Australian Government’s Digital ID app, myID, is the most secure way to access ATO online services and helps protect against identity crime. When you use myID to access ATO online services you’re securing your account and defending yourself from fraudsters trying to access your account or impersonate you.

Taxable payments annual report

If your business makes payments to contractors, you may need to report these payments and lodge a Taxable payments annual report (TPAR). Prepare for your TPAR by keeping records of contractor payments and get ready to lodge by 28 August to avoid penalties for failing to lodge on time.

If you don’t need to lodge, submit a Non-lodgment advice to let the ATO know and avoid unnecessary follow up.

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