Income tax thresholds/amounts
Various income tax thresholds and amounts changed on 1 July 2025. Some of the more common business-related ones are listed below.
| Item | Threshold/amount for 2024–25 | Threshold/amount for 2025–26 |
|---|---|---|
| GDP adjustment factor | 6% | 4% |
| Instant asset write-off | $20,000 | $1,000 (see below) |
| Reasonable meal expenses – employee truck driver | Breakfast – $30.35 Lunch – $34.65 Dinner – $59.75 |
Breakfast – $31.15 Lunch – $35.55 Dinner – $61.30 |
| Reasonable meal expenses – other employees | See Taxation Determination TD 2024/3 | See Taxation Determination TD 2025/4 |
| Overtime meal allowance – reasonable amount | $37.65 | $38.65 |
| Superannuation guarantee charge percentage | 11.5% | 12% |
| Superannuation guarantee maximum contribution base (earnings per quarter) | $65,070 | $62,500* |
The indexed amount of the maximum contribution base for 2025–26 would normally have been $68,060. However, this would result in concessional superannuation contributions in excess of the $30,000 cap (($68,060 × 12%) × 4 = $32,668 per year). Accordingly, the maximum contribution base is capped at $62,500 per quarter (($62,500 × 12%) × 4 = $30,000 per year). The following thresholds from 2024–25 remain unchanged for 2025–26: car limit (depreciation) – $69,674; and cents per km rate (car expense deductions) – 88 cents per km.
Instant asset write-off
Are you a sole trader? The instant asset write-off (IAWO) allows a small business (aggregated annual turnover of less than $10 million) to claim an immediate deduction for the cost of eligible depreciating assets that cost less than the applicable threshold. The IAWO threshold was $20,000 for 2023–24 and 2024–25, and has reverted to $1,000 from 1 July 2025. The Government has proposed to temporarily increase the threshold to $20,000 for 2025–26 but this measure is not yet law.
The $1,000 threshold applies where a depreciating asset is first used, or installed ready for use, on or after 1 July 2025 (even if acquired before that date). The $1,000 threshold also applies to the ‘second element’ costs incurred on or after 1 July 2025 (including in respect of an asset that was first used, or installed ready for use, before 1 July 2025). ‘Second element’ costs are essentially costs incurred after the asset is acquired that bring the asset to its present condition and location.
Tax time again!
The due date for lodging your income tax return for the 2024–25 income year is 31 October 2025. However, if you use a registered tax agent to lodge your return, the due date for lodgement is likely to be later than 31 October, possibly even as late as May next year.
If you operate your business in a partnership, the partnership lodges the partnership tax return reporting the partnership’s net income or loss, and each partner includes their share in their own tax return. If you operate through a trust, the trustee lodges a trust tax return and beneficiaries include distributions in their own returns.
Quarterly due dates for superannuation guarantee payments
When a due date falls on a weekend or public holiday, the payment can be made on the next working day.
| Quarter | Period | Payment due date |
|---|---|---|
| 1 | 1 July – 30 September | 28 October |
| 2 | 1 October – 31 December | 28 January |
| 3 | 1 January – 31 March | 28 April |
| 4 | 1 April – 30 June | 28 July |
Key dates
This is the next business day as the due date (21 September) falls on a Sunday.
| Date | Obligation |
|---|---|
| 22 Sep 2025* | August monthly BAS due |
| 30 Sep 2025 | Finalisation declaration (for STP reporting purposes) for closely held payees where you have both closely held payees and arm’s length employees |
| 21 Oct 2025 | September monthly BAS due; Payment of annual PAYG instalment for 2024–25 |
| 28 Oct 2025 | September quarter BAS due; Payment of first PAYG instalment for 2025–26 by quarterly payers |
| 31 Oct 2025 | 2024–25 income tax return due; PAYG withholding annual reports due (no ABN withholding; interest, dividend and royalty payments paid to foreign residents; and payments to foreign residents) |
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