Month: December 2025

Payday Superannuation

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The government announced changes to superannuation guarantee from 1 July 2026.

On 2 May 2023 the Australian Government announced that from 1 July 2026, employers will be required to pay their employees’ superannuation guarantee (SG) at the same time as their salary and wages.

On 9 October 2025, the Government introduced the Treasury Laws Amendment (Payday Superannuation) Bill 2025External Link and the Superannuation Guarantee Charge Amendment Bill 2025External Link.

This measure is now law.

Source: Australian Taxation Office

Reminder – ATO Interest Deductibility Changes

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ATO reminder for the upcoming changes to the deductibility of interest.

The Australian Taxation Office (ATO) is reminding taxpayers, from 1 July 2025 interest charged by the ATO for late payments or underpayments will no longer be tax deductible.

The Treasury Laws Amendment (Tax Incentives and Integrity) Act 2025 is now law. This means any general interest charge (GIC) incurred on and after 1 July 2025, regardless of whether the debt relates to an earlier income year, will no longer be tax deductible.

The change is designed to ensure that taxpayers who do the right thing and pay their tax in full and on time are not disadvantaged relative to those who do delay payment.

The ATO website has a range of helpful tools and free resources to help taxpayers and business owners to plan ahead and manage their cash flow to prevent a tax debt.

Source: Australian Taxation Office

ATO 2025 Holiday Closure Period

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The ATO offices, phone support services and customer response on their social media pages will be unavailable during their annual closure.

The closure will start at noon local time Wednesday 24 December 2025. Normal services will resume at 8am local time on Friday 2 January 2026.

Source: Australian Taxation Office

ATO Interest Charges – No Longer Deductible

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Taxpayers can no longer claim an income tax deduction for ATO interest charges incurred on or after 1 July 2025.

On 13 December 2023, as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO), the government announced it would amend the tax law to deny income tax deductions for ATO interest charges.

This is now law.

The law change applies in relation to assessments for income years starting on or after 1 July 2025. An assessment for an income year is how your income tax is calculated, as explained in your notice of assessment.

This means that you can no longer deduct GIC and SIC incurred on or after 1 July 2025 in your income tax return for income years starting on or after that date. However, this law change applies in a different way for Entities with a substituted accounting period.

Source: Australian Taxation Office