$20,000 Instant Asset Write-Off Extended — With Possible Further Extension
We’re pleased to update you on recent developments regarding the $20,000 instant asset write-off for small businesses, along with other depreciation concessions that could benefit your future tax planning.
$20,000 Instant Asset Write-Off Extended to 30 June 2025
The Federal Government has legislated an extension of the $20,000 instant asset write-off for small business entities (with aggregated turnover less than $10 million) until 30 June 2025.
This means you can immediately deduct the full cost of eligible depreciating assets costing less than $20,000 each, if:
– The asset is first used or installed ready for use between 1 July 2023 and 30 June 2025, and – It is used mainly for business purposes.
Tip: The $20,000 threshold applies per asset, so you can claim multiple assets under this rule. Proposed Extension to 30 June 2026 (Not Yet Law)
The Government has also announced its intention to extend the $20,000 threshold for a further year — to 30 June 2026.
Important: As of now, this proposed extension has not yet been legislated. We will keep you informed once it becomes law.
Immediate Deduction for Pool Balances Under $20,000
If you use the simplified depreciation rules, you can claim an immediate deduction for the full balance of your small business depreciation pool at 30 June 2025, if the balance is less than $20,000 (before depreciation).
Lock-Out Rules Suspended Until 30 June 2025
Normally, businesses that opt out of the simplified depreciation rules cannot re-enter for five years (the “lock out” rules). However, these rules are suspended until 30 June 2025.
So, if you’ve previously opted out, you can re-enter the system immediately and benefit from the $20,000 write off and pool concessions.
What to Do Now
– Any past or future purchases made we will advise accordingly the method of depreciation to use and whether the write-off is right for you.
– Each taxpayer’s circumstances will be different, we are monitoring your depreciation claims and will continue to work with you to minimize tax.
SUPERANNUATION UPDATES
Superannuation Changes Effective 1 July 2025: Key Updates for Employers and Individuals
As we approach the 2025–26 financial year, several significant changes to Australia’s superannuation system will come into effect from 1 July 2025. These updates will impact both employers and individuals in terms of contribution obligations, tax planning, and retirement strategies. Below is a summary of the key changes:
Superannuation Guarantee (SG) Rate Increases to 12%
• Current Rate: 11.5%
• New Rate (from 1 July 2025): 12.0%
This marks the final legislated increase in the SG rate, completing the gradual rise from 9.5% in 2021 to 12% in 2025. Employers must ensure their payroll systems are updated to reflect this change and that the increased contributions are made for all eligible employees.
Contribution Caps Remain Unchanged
• Concessional Contributions Cap
• Annual Cap: $30,000
Concessional contributions include employer SG contributions, salary sacrifice contributions, and personal contributions for which a tax deduction is claimed. The cap remains at $30,000 for the 2025–26 financial year.
• Non-Concessional Contributions Cap
• Annual Cap: $120,000
• Bring-Forward Rule: Up to $360,000 over three years (subject to eligibility)
Non-concessional contributions are after-tax contributions made to your super fund. The annual cap remains at $120,000, with the bring-forward rule allowing eligible individuals to contribute up to $360,000 over a three year period. Eligibility depends on your total super balance and age.
Transfer Balance Cap (TBC) Increases
• Current Cap: $1.9 million
• New Cap (from 1 July 2025): $2.0 million
The TBC limits the amount of superannuation that can be transferred into the tax-free retirement phase. From 1 July 2025, the general TBC will increase to $2.0 million, allowing individuals to transfer more into the retirement phase without incurring additional tax.
Introduction of Additional Tax on Super Balances Above $3 Million
Please note: As at June 2025, Division 296 has not yet been passed into law. It remains a proposed measure under consideration by Parliament. Clients should seek advice, but understand this measure is not yet enacted.
From 1 July 2025, individuals with total superannuation balances exceeding $3 million will be subject to an additional 15% tax on earnings attributed to the portion of their balance above $3 million. This measure aims to ensure the superannuation system remains equitable and sustainable.
Downsizer Contributions Remain Available
Individuals aged 55 or older can continue to make downsizer contributions of up to $300,000 per person ($600,000 per couple) from the proceeds of selling their primary residence. These contributions are not counted towards the non-concessional contributions cap and can be a valuable way to boost retirement savings.
Action Points
• Employers: Update payroll systems to accommodate the SG increase to 12% and ensure compliance from 1 July 2025.
• Individuals: Review your contribution strategies to make the most of the available caps. • High-Balance Members: Seek advice regarding the new tax on balances exceeding $3 million. • Potential Downsizers: Evaluate the downsizer contribution strategy when selling your home.
For personalized advice or further information on how these changes may affect your specific circumstances, please contact our office.
Important Notice: ABN Applications and Agent Linking
We kindly request that clients do not apply for an ABN themselves for any structure other than sole traders. Due to recent ATO requirements, new ABNs for companies, trusts, and partnerships must be linked to a tax agent through a formal process before we are able to access their records or act on their behalf.
To avoid delays or complications, please contact our office first if you are planning to register a company, trust, or partnership. We can manage the ABN application and ensure all linking requirements are handled properly.
Keep Your Contact Details Up to Date
To ensure we can continue to provide timely and effective service, we kindly remind all clients to inform us of any changes to your contact information. This includes:
– Residential or postal address
– Email address
– Phone number
Keeping your details current helps us manage your tax, superannuation, and compliance matters accurately.
Your Tax File Number (TFN) is Secure
We would like to reassure all clients that while we do hold your Tax File Number (TFN) securely on file, we do not include your TFN on any correspondence issued from our office—whether by email, letter, or any other method. This is part of our commitment to protecting your sensitive personal information and maintaining the highest standards of confidentiality.
If you receive any document appearing to display your TFN electronically, please notify our office immediately.
Caution: Business Name, Company Name & Domain Renewal Scams
We remind all clients to exercise caution when receiving invoices or renewal notices for business name, company name, or domain name renewals. There are numerous unofficial organisations that send misleading or fraudulent notices which appear to be legitimate.
If you receive any such correspondence and are unsure of its authenticity, please forward it to our office before making any payment. We are happy to confirm whether the invoice is genuine or part of a known scam attempt.
TAX RATE CHANGES
Tax rates changed from 1 July 2024, resulting in an overall tax saving for all. Tax rates will remain unchanged for the 2026 income year.
Below is the updated tax rates table from 1 July 2024:
| Resident tax rates 2024-2025 | Resident tax rates 2025-2026 | ||
| Taxable Income | Tax on this income | Taxable Income | Tax on this income |
| 0-$18,200 | Nil | 0 – $18,0200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 | $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 | $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 | $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 | $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
Above rates do not include Medicare Levy **
2025 – 2026 BAS LODGEMENT DATES
IF HAZEAL NEWMAN & ASSOCIATES LODGE YOUR BAS:
July – Sept 2025 BAS – due approx. 25th November 2025
Oct – Dec 2025 BAS – due approx. 28th February 2026
Jan – March 2026 BAS – due approx. 25th May 2026
April – June 2026 BAS – due approx. 25th August 2026
IF YOU LODGE YOUR OWN BAS the due dates are:
July – Sept 2025 BAS– due 28th October 2025
Oct – Dec 2025 BAS – due 28th February 2026
Jan – March 2026 BAS – due 28th April 2026
April – June 2026 BAS – due 28th July 2026
MIDSEC
Current Market View
Markets dislike nothing more than uncertainty, and currently, there is an abundance of it. The U.S. administration’s new trade war has cast a shadow over consumer, business, investor, and diplomatic sentiment, fuelling fears of recession and stagflation. However, neither the U.S. government nor its global counterparts desire this as an outcome, and history suggests that a middle ground will eventually be found. As we often discuss, it is important to look beyond the immediate noise.
In recent months, we have adopted a more defensive stance by increasing our allocation to defensive assets for our clients and securing profits from positions with overstretched valuations. While remaining cautious, we believe that volatility can create opportunities for long-term investors. History has shown that patience is rewarded, and we are prepared to lean into opportunities as they arise. Clarity is key to investing and, in the meantime, check to ensure your investments are well-positioned to withstand the volatility.
Top Investor Tips For 2025-2026
1- Practice Aggressive Patience: Stay disciplined, wait for quality investments at reasonable prices, and resist chasing market hype
2- Don’t Let Inflation Deflate Your Portfolio: Include bonds to offset risk, balance equities and benefit from falling interest rates
3- Unearth Hidden Gems: Explore emerging markets and undervalued assets for long-term growth while managing risks.
4- Build it Once, Sell it Often: Invest in companies that create scalable, recurring revenue streams 5- Winner Take All: Focus on high-quality businesses with dominant market positions and innovation. 6- Turn Misbehaviours into Masterpieces: Use market dips and rebalancing to turn setbacks into opportunities.
7- Be Cautious: Avoid market hype, focus on fundamentals, and stay aligned with your long-term goals. 8- Be a Landlord Without the Headache: Consider indirect real estate investments like REITs for steady returns without direct property management.
Midsec and you
If you are starting to plan for your retirement, implement your farm or business succession plan, want to review your current investments and superannuation or improve your retirement cash flow, we can help you. Please contact your accountant at HNAA and make a free no obligation appointment with one of our advisers.
Midsec has been working with HNAA for over 8 years now and our advisers work out of HNAA office regularly and would be thrilled to meet you and discuss your questions and retirement goals.
