Jacki Ullrich Accounting
          Professional Taxation Services
ABN 20 528 947 297
 

Key Changes for Individuals for the 2024-2025 Tax Season

Here is a summary of the key changes that will apply this tax time.

 

WORKING FROM HOME DEDUCTIONS:

There are two methods of deducting working from home expenses: fixed rate method and actual method. Both methods require a work from home diary for every single time you have worked from home during the financial year. The diary must include dates worked, time commenced, time finished, breaks taken, and work undertaken.

 

Fixed rate method

The hourly rate and types of expenses covered by the hourly rate have been revised. A revised fixed rate of 70 cents per hour covers the below expenses:

• data and internet

• mobile and home phone usage

• electricity and gas

• computer consumables (e.g. printer ink)

• stationery.

We are no longer required to have a dedicated home office to use this method.

While using fixed cost method we can claim deduction for below expenses on top of the hourly rate:

• the decline in value of assets used while working from home, such as computers and office furniture

• the repairs and maintenance of these assets

• cleaning (only if you have a dedicated home office).

 

Actual cost method

The actual cost method allows us to claim deductions for all the above working from home expenses based on detailed calculations and records.

Eligibility criteria for using the actual cost method to claim actual expenses are as below:

• we must incur additional running expenses as a result of working from home

• we must keep records or other written evidence, which shows the amount:     

  • we spent on expenses

  • we spent on depreciating assets we buy and use while working from home

  • of work-related use for your expenses and depreciating assets.

Cleaning costs can be claimed only if there is a dedicated home office.

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NEW TAX CUTS FOR INDIVIDUAL TAXPAYERS

The Government will deliver new tax cuts to individual taxpayers commencing from 1 July 2026 (i.e., from the 2027 income year).

Under the new tax cuts, it is proposed that:

• the (current) 16% tax rate will be reduced to 15% from 1 July 2026; and

• the 15% tax rate will be further reduced to 14% from 1 July 2027.

The personal income tax rates (excluding the Medicare levy) for the 2025 and 2026 income years are set out in the following table, along with the proposed changes to the tax rates for the 2027 and 2028 income years:

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Please click on above Word document to view the tax table for 2025-2028

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By way of example, a taxpayer earning between $18,201 and $45,000 will get a tax cut of up to $268 in the 2027 income year and up to $536 from the 2028 income year.