Filing your tax return can be stressful, especially with ongoing changes to policies and regulations. We’ve put together a summary of key points we believe you should be aware of for your 2024–2025 tax return.
Changes to Income Tax Rates
From 1 July, 2024, the following changes to the tax rates have been legislated:
- The threshold for the 37% tax rate has increased from $120,000 to $135,000.
- The threshold for the 45% tax rate has increased from $180,000 to $190,000.
- The 19% tax rate has been reduced to 16% for income between $18,201 and $45,000.
- The 32.5% tax rate has been reduced to 30% for income between $45,001 and $135,000.
Below are the tax rates for 2024-2025
| Tax on the taxable income | |
| 0 – $18,200 | Nil |
| $18,201-$45,000 | 16% |
| $45,001-$135,000 | $4,288 + 30% on part over $45,000 |
| $135,001-$190,000 | $31,288 + 37% on part over $135,000 |
| $190,001 and over | $51,638 + 45% on part over $190,000 |
The 16% tax rate is expected to be reduced further, to 15% in 2025–2026 and then to 14% in 2026–2027, based on the Labour Party’s commitment during the 2025 Federal Election campaign.
For more information, please visit:
ATO, Australian resident tax rates: https://www.ato.gov.au/tax-rates-and-codes/tax-rates-australian-residents
Cost of Living Tax Cuts: https://www.aph.gov.au/Parliamentary_Business/Bills_Legislation/Bills_Search_Results/Result?bId=r7140
Labour promised tax cuts: https://alp.org.au/news/new-cost-of-living-tax-cuts-under-labor/
Electric Vehicle Home Charging Rate
From 1 July 2022, you can either:
- Estimate your home charging expenses using the rate of 4.2 cents per kilometre, or
- Claim actual expenses, including commercial charging station costs.
To use the second option (actual expenses), you must keep:
- Receipts from commercial charging stations
- Evidence of your home electricity costs and how you calculated the portion used to charge your car
- Odometer readings from the start and end of the period you’re claiming
For more information, please visit:
Expenses for a car you own or lease: https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/cars-transport-and-travel/motor-vehicle-and-car-expenses/expenses-for-a-car-you-own-or-lease
Reporting Trust Distributions
From the 2024 income year, if you received one or more distributions from trusts, you must report the distributions you receive.
Disaster Payments and Grants
Australia has recently experienced an increasing number of natural disasters. If you’ve been affected in these unfortunate events and received compensation from any of the following sources:
- Local, state, or federal government agencies
- A charity or community organisation
- Your employer
It’s important to understand whether the payments are tax-free, tax-exempt, non-assessable non-exempt (NANE) income, or taxable, and report them accordingly.
For more information, please visit:
Reporting disaster payments and grants in your tax return: https://www.ato.gov.au/individuals-and-families/financial-difficulties-and-disasters/support-in-difficult-times/support-from-other-agencies/reporting-disaster-payments-and-grants-in-your-tax-return
Take the Stress Out of Tax Time with Infinity Solution Tax Plus
Preparing your tax return doesn’t have to be overwhelming. By working with a registered accountant, you’ll enjoy less stress, more time to gather the necessary documents, and the peace of mind that comes from professional support.
At Infinity Solution Tax Plus, our experienced team of Certified Practicing Accountants (CPAs) stays up to date with the latest policy changes and amendments. We’re committed to helping you while making your 2024/2025 tax return process as smooth and straightforward as possible.
Important: To ensure we can assist you with your return for the previous financial year, please engage our services by 31 October at the latest.
We’re conveniently located in the heart of Box Hill. Book a private consultation with us today at infinitysolution.com.au and let us help you take the stress out of tax season.
Infinity Solution Tax Plus 