Work from home fixed rate
The fixed rate for work from home expenses for 2024–25 is 70c per hour.
See, Fixed rate method.
Cents per kilometre increase
The cents per kilometre rate for work-related car expenses for 2024–25 is 88c per kilometre.
See, Calculating your car expense deductions and keeping records.
Electric vehicle home charging rate – plug-in hybrid electric vehicles
From 1 July 2024, if you own and use a plug-in hybrid electric vehicle (PHEV) you can use the EV home charging rate to calculate the cost of charging your PHEV at home.
To use the EV home charging rate of 4.2c per kilometre to determine the cost of your electricity, you must:
- use your PHEV for gaining or producing your assessable income
- incur electricity expenses when charging your PHEV at home
- have kept the relevant records for the income year
- be claiming your car expenses using the logbook method or claiming your actual work-related vehicle expenses.
If you choose to use this rate and your vehicle doesn't have the ability to accurately determine the home charging percentage, you can't claim commercial charging station costs you incurred during the income year as a separate deduction.
Alternatively, you can choose to claim the electricity used for charging your PHEV by determining the actual cost incurred. Owners of zero emissions electric vehicles (EVs) who use their vehicles for gaining or producing their assessable income can continue using the EV home charging rate provided they meet the relevant requirements.
This guidance doesn't apply to electric motorcycles or electric scooters.
For more information, see Draft Practical Compliance Guideline PCG 2024/DC2 Electric vehicle home charging rate - calculating electricity costs when a vehicle is charged at an employee's or individual's home.
Lump sum payment in arrears exemption from Medicare levy
From 1 July 2024, if you meet the eligibility requirements, we will exclude the lump sum payment in arrears (LSPIA) amount when calculating your Medicare levy liability. This ensures that no Medicare levy applies to the eligible lump sum.
We will work out if you're eligible for the Medicare levy exemption on your LSPIA using the information in your current year and prior year tax returns.
You may also be eligible for the lump sum payment in arrears tax offsets on your LSPIA amount.
For more information, see Lump sum payment in arrears.
Selling and purchasing property
From 1 January 2025 the foreign resident capital gains withholding (FRCGW) rate increased to 15% and the threshold was removed. It applies to all individual and non-individual vendors (property sellers) selling or disposing of certain taxable real property.
Australian residents selling property need a clearance certificate to avoid having an amount withheld from the sale price.
Types of property include:
- your home
- vacant land, buildings, residential and commercial property
- mining, quarrying or prospecting rights where they are situated in Australia
- a lease over real property in Australia
- indirect Australian real property (IARP) interests, where the holder has a right to occupy land or buildings on land.
The 15% withholding rate applies to the market value of all property contracts signed on or after 1 January 2025, unless the vendor (property seller):
- is an Australian resident for tax purposes and provides their clearance certificate to the purchaser
- is a foreign resident who is eligible to reduce the amount withheld by supplying the purchaser with a variation notice.
If you are an Australian resident and you didn't obtain a clearance certificate, you can claim the amount that was withheld in your tax return. For full instructions, see:
Tax Help eligibility expansion
The eligibility criteria for the Tax Help program has changed. If you earn $70,000 or less and have simple tax affairs, you can access free assistance through our program (previously the income limit was $60,000).
From July to October, ATO-trained volunteers can help you lodge your tax return online using myTax. They can also assist you with:
- non-lodgment advice
- amending a tax return if you’ve made a mistake
- lodging a refund of franking credits
- creating your myGov account, or helping you link your account to the ATO.
For more information, see Tax Help program.
Reducing the use of cheques for refunds
The Treasury Laws Amendment (2024 Tax and Other Measures No. 1) Act 2024External Link amends tax law to provide us with a discretionary power to retain certain tax refunds and credits for up to 90 days. We can retain the refund from the date the refund or credit becomes payable.
To avoid delays in receiving a refund from us, ensure you provide or update your financial institution details.
If we retain your refund because we don’t have valid Australian financial institution details, we will contact you by letter, email, or through a myGov message.
The holding rule doesn't apply where you provide valid Australian financial institution details with your tax return.
Proposed $1,000 instant tax deduction
On 13 April 2025, as part of Labor's election commitments, they proposed a $1,000 instant tax deduction for work-related expenses. This change applies from 2026–27. It is not yet law and does not apply to Tax Time 2025.
For information about deductions for the 2024–25 income year, see Deductions you can claim.
Housing tax incentives – build to rent developments
The housing tax incentives give owners and investors in large-scale eligible build to rent developments access to:
- an accelerated deduction of 4% for capital works relating to build to rent developments
- a concessional final withholding tax rate of 15% on eligible fund payments (amounts referrable to rental income and capital gains from the build to rent development).
For more information, see Build to rent development tax incentives.