2024-25 Tax Year
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Income Statements have replaced PAYG Payment Summaries
Employers will finalise 2024-25 reporting for Single Touch Payroll by 14 July 2025 and an "Income Statement" will then become available on myGov for each employee.
1. Sign into myGov
2. select Australian Taxation Office
3. select (from the top of the screen) Employment and then Income Statements
Car Expense Claims
From 1 July 2015 there are only two methods of claiming car expense deductions;
- the logbook method
You can claim a deduction for the % of business use of a vehicle, applied to all costs for the vehicle.
A logbook must be kept for at least a 12 week period with the level of detail required by the ATO rules.
The logbook is used to determine the % business use of the vehicle and can be used for up to five years.
- the cents per kilometre method
The cents per kilometre method has increased to a rate of 88 cents per km for all vehicles for 2024-25.
A maximum of 5,000 business kilometres can be claimed under this method.
Claiming Work from Home expenses
You may be entitled to claim deductions for work from home expenses including a computer, phone, internet or other electronic devices you are required to use for work purposes.
The ATO has specific rules to show evidence of these expenses and the calculation of use for work purposes.
The Work from Home deductions are now considered in three categories;
1. Home Office Occupancy - when you have a room dedicated as a home office.
2. Home Office Running costs - using either
a) ATO Fixed Rate method of $0.70 per hour based on a diary of hours worked
b) Actual Cost method based on actual costs and detailed calculations of work usage
3. Home Office - Depreciation of Assets based on ATO depreciation rates and % of work usage
Deductions for personal Superannuation Contributions
You can claim a tax deduction for contributions to superannuation of up to $30,000 if you meet the eligibility rules regarding the fund, your age and notice given to the fund.
If employers have made Superannuation contributions to your super, the $30,000 limit is effectively reduced by the amount of those contributions. Contributions need to be made before 30 June to qualify as a deduction.
If you have not contributed the full annual limit of concessional contributions in the past, you may also be able to use the carried forward unused contributions limits in the current year. There are a number of conditions to meet to qualify, but your Tax Agent can guide you through this if required.
Small business income tax offset
Individuals with business income from an unincorporated small business (sole traders, partnerships and trusts) are entitled to a tax offset for tax payable on the business income.
Businesses with annual revenue of less than $5 million are considered to be Small Businesses for this offset.
The offset is calculated as 16% of the tax payable on the business income up to a maximum of $1,000 per year.
Employers will finalise 2024-25 reporting for Single Touch Payroll by 14 July 2025 and an "Income Statement" will then become available on myGov for each employee.
1. Sign into myGov
2. select Australian Taxation Office
3. select (from the top of the screen) Employment and then Income Statements
Car Expense Claims
From 1 July 2015 there are only two methods of claiming car expense deductions;
- the logbook method
You can claim a deduction for the % of business use of a vehicle, applied to all costs for the vehicle.
A logbook must be kept for at least a 12 week period with the level of detail required by the ATO rules.
The logbook is used to determine the % business use of the vehicle and can be used for up to five years.
- the cents per kilometre method
The cents per kilometre method has increased to a rate of 88 cents per km for all vehicles for 2024-25.
A maximum of 5,000 business kilometres can be claimed under this method.
Claiming Work from Home expenses
You may be entitled to claim deductions for work from home expenses including a computer, phone, internet or other electronic devices you are required to use for work purposes.
The ATO has specific rules to show evidence of these expenses and the calculation of use for work purposes.
The Work from Home deductions are now considered in three categories;
1. Home Office Occupancy - when you have a room dedicated as a home office.
2. Home Office Running costs - using either
a) ATO Fixed Rate method of $0.70 per hour based on a diary of hours worked
b) Actual Cost method based on actual costs and detailed calculations of work usage
3. Home Office - Depreciation of Assets based on ATO depreciation rates and % of work usage
Deductions for personal Superannuation Contributions
You can claim a tax deduction for contributions to superannuation of up to $30,000 if you meet the eligibility rules regarding the fund, your age and notice given to the fund.
If employers have made Superannuation contributions to your super, the $30,000 limit is effectively reduced by the amount of those contributions. Contributions need to be made before 30 June to qualify as a deduction.
If you have not contributed the full annual limit of concessional contributions in the past, you may also be able to use the carried forward unused contributions limits in the current year. There are a number of conditions to meet to qualify, but your Tax Agent can guide you through this if required.
Small business income tax offset
Individuals with business income from an unincorporated small business (sole traders, partnerships and trusts) are entitled to a tax offset for tax payable on the business income.
Businesses with annual revenue of less than $5 million are considered to be Small Businesses for this offset.
The offset is calculated as 16% of the tax payable on the business income up to a maximum of $1,000 per year.