Tax Time FY 24-25: What’s New For You

Here we are at the end of another financial year, and that means it’s tax time. If you get overwhelmed by having to do your tax, or you just put it in the too-hard basket and procrastinate for as long as possible, you’re not alone.

We’re here to make it easier for you, by breaking down some of the latest changes to tax for your 2024/2025 return. Hopefully, with a little extra info, you can get yourself a nice refund instead of a tax bill from the Australian Taxation Office (ATO).

Here’s a quick guide to what’s new for individuals in the 24/25 financial year.

1. Work From Home? There’s A New Fixed Rate To Calculate Your Deduction.

If you’ve been clocking in from the couch, kitchen table or home office – the ATO’s updated fixed rate method for work from home expenses is now 70 cents per hour. This covers additional running expenses such as energy, internet, phone, and stationery costs. You’ll want a record of your calendar or some proof of your hours worked from home if you claim this deduction.

2. Driving For Work? That Mileage Could Be Money.

The cents per kilometre rate for work-related car expenses has risen to 88 cents per kilometre. This applies if you’re using your own car for work, excluding regular commuting. You can claim up to 5,000 km per year using this method (that’s a deduction cap of $4,400 for those playing along at home), as long as you make sure you’ve kept a log of your trips.

3. Saving The Planet? There Are New Rules for Plug-In Hybrid Owners.

If you drive a plug-in hybrid electric vehicle for work, you can now claim electricity costs for charging your car at home. You can use the new home charging rate of 4.2 cents per kilometre to make an estimate of your home charging expenses.  This rate applies to plug-in hybrid vehicles that are used to “gain or produce” your assessable income, excluding motorbikes and e-scooters. To qualify, you’ll need a logbook with records of your driving, odometer reading for the car at the start and end of the income year and the electricity bill for your home.

4. Received Any Lump Sum Payments? You Could Get A Partial Medicare Levy Exemption

If you received a lump sum payment in arrears (like back pay or payment for time in lieu), you may be eligible for a Medicare levy exemption on that amount. The ATO will assess your eligibility based on your current and previous years’ tax returns.

5. Tax Help Program Threshold Increased

Need a hand lodging your return? The ATO’s Tax Help program has expanded and now supports individuals earning $70,000 or less with simple tax affairs. It’s free and a great option if you meet the eligibility. Here’s how to make a Tax Help prgram appointment.

6. Selling Or Buying Property Has New Reporting Requirements

If you’ve sold property this calendar year (since Jan 1 2025), make sure you understand your capital gains tax obligations, and the latest reporting rules. You may be able to claim withheld amounts from your property sale if you failed to provide a clearance notice to the ATO during the sale. The ATO often focuses on property transactions at tax time, so it’s important to keep accurate records on hand.

Tips for a Smooth Tax Return

• Your Ubank app can help you prepare for tax time. Download your statements for interest earned summaries, use Smart Search to find deductible transactions, and check your Cash Flow insights to see how much you spent with different merchants throughout the year.
• Lodge online with myTax for faster processing (usually within 10 business days).
• Keep records of all deductions, especially for work-from-home and vehicle expenses.

For more details, visit the ATO’s guide on changes to tax for individuals this financial year.