In the April 2025 Practice Update, the ATO has announced a series of compliance measures and deadlines affecting small businesses. From superannuation and fringe benefits tax to BAS and transfer balance caps, business owners need to act now to remain compliant.
ATO’s 2025 Small Business Focus
The ATO is currently focusing on several areas where small businesses are often found non-compliant:
- Omitted contractor income — Using data-matching to ensure all contractor payments are reported correctly.
- BAS reporting changes — From 1 April 2025, around 3,500 small businesses with poor GST compliance history will be moved from quarterly to monthly GST reporting.
The ATO is also monitoring:
- Incorrect small business CGT concessions
- Non-commercial business losses
- Improper claims of small business ‘boosts’
- Taxi, limousine, and ride-sourcing income
- GST registration issues
Super Guarantee Reminder – March 2025 Quarter
The Superannuation Guarantee (SG) contributions for the March 2025 quarter must be received by employees’ super funds by Monday, 28 April 2025.
Failing to meet the deadline means paying the SG charge, which includes penalties and interest.
Note: The SG rate for the 2025 financial year is 11.5%.
FBT Changes: Plug-in Hybrid Exemption Ends
The FBT exemption for plug-in hybrid electric vehicles (PHEVs) ended on 31 March 2025.
However, businesses may still apply the exemption if:
- The vehicle was used or available for private use before 1 April 2025, and
- The employer had a financially binding agreement to continue providing that use.
Additionally, from the 2025 FBT year onwards, employers may use existing business records instead of declarations or travel diaries for certain fringe benefits, provided they meet minimum ATO data requirements when lodging.
TBC Cap Increase – From 1 July 2025
From 1 July 2025, the general transfer balance cap (TBC) will increase from $1.9 million to $2 million. This affects how much capital individuals can move into tax-free retirement phase pensions.
Those who start a pension on or after 1 July 2025 will have a personal cap of $2 million.
The increase also impacts:
- Non-concessional contribution caps
- Bring-forward rules
- Spouse tax offsets and co-contributions
To help the ATO apply the correct personal TBC, super funds are encouraged to report TBC events as early as possible before 1 July 2025.
Ref: ATO website
Please contact Wiselink Accountants if you require further information
