With cost-of-living pressures biting harder and global volatility adding further strain, this tax time calls for a sharper focus and a proactive mindset.
The Australian Taxation Office (ATO) has already signalled a tougher approach, with penalties and interest on late or unpaid tax obligations firmly in the spotlight.
Local accountant and YBM director, Cally Woodhouse, warns that the era of leniency is over.
“The ATO has made it clear they’re tightening the reins,” she says. “Penalties for late or missed obligations have increased again this financial year—and importantly, interest and penalties are not tax deductible.”
ATO’s Tougher Stance: What’s Changed for 2025
While this mainly affects businesses, individuals with overdue tax returns aren’t exempt.
Each year, the ATO releases its key areas of focus. This year, data matching takes centre stage—especially in relation to superannuation, GST, and reportable income.
Super Guarantee & Payroll: The Crackdown on Employers
Tools like Single Touch Payroll are now being used more aggressively to ensure employers meet their Super Guarantee (SG) responsibilities.
Contractors, particularly in construction, cleaning, courier services, IT, and security, should pay close attention.
“Contractors need to ensure their reported income aligns with what’s reported by their clients through Taxable Payments Annual Reports (TPAR),” Ms Woodhouse said.
Capital Gains Tax Under the Microscope
Capital Gains Tax (CGT) is another area under scrutiny—specifically, errors in applying CGT concessions. While often unintentional, these mistakes usually stem from a lack of understanding of eligibility criteria.
“Penalties for late or missed obligations have increased again this financial year—and importantly, interest and penalties are not tax deductible.”
YBM strongly recommends seeking professional advice when dealing with capital gains to ensure accurate reporting, appropriate use of rollover relief, and application of CGT discounts.
Timing Matters: Don’t Lodge Your Return Too Early
Finally, while it’s a good time to start gathering receipts and records, Ms Woodhouse urges taxpayers to hold off lodging returns until the end of July.
“By then, most pre-fill data—including income details—will be available, which helps streamline lodgement and speeds up refunds,” she said.
For tailored advice or assistance, get in touch with the team at YBM or visit ybm.com.au.