Tax updates for 2025
Depreciating assets
The $20,000 instant asset write-off has been extended for the 2024-2025 tax year.
This means if you purchased any assets up to the value of $20,000 this year, and your business has a turnover of less than $10 million, you may be eligible to claim this immediately as a tax deduction by utilising the instant asset write-off.
The $20,000 threshold will apply on a per (eligible) asset basis, allowing sole traders to instantly write off multiple (eligible) assets.
To check if you can claim this deduction, it’s best to speak to an accountant. They’ll need to know details like:
The date you bought the asset
The amount paid
GST withheld
The % used for business
They’ll also need a purchase invoice or receipt.
Pro-Tip: If you’re using Rounded, you can label any assets that may qualify for instant write-off under “Equipment” within your P&L Statement.
Stage 3 tax cuts
As of July 1st 2024, the Australian government has:
Implemented lower tax rates for anyone who falls in the $18,201 – $135,000 thresholds
Increased the threshold above which the 37 per cent tax rate applies from $120,000 to $135,000
Increased the threshold above which the 45 per cent tax rate applies from $180,000 to $190,000
2023-2024 | 2024-2025 | ||
|---|---|---|---|
Thresholds ($) | Rates (%) | Thresholds ($) | Rates (%) |
$0 - $18,200 | Tax free | $0 - $18,200 | Tax free |
$18,201 - $45,000 | 19% | $18,201 - $45,000 | 16% |
$45,001 - $120,000 | 32.5% | $45,001 - $135,000 | 30% |
$120,001 - $180,000 | 37% | 135,001 - $190,000 | 37% |
Over $180,000 | 45% | Over $190,000 | 45% |
You can also get an estimate of your tax cut here.