29 April 2025
Upcoming ATO Regulatory Changes
From 1 July 2025, there are two key changes from the ATO:
1. Superannuation Guarantee (SG) Rate Increase
The SG rate will rise from 11.5% to 12%, increasing payroll costs. Employers should:
- Review employment contracts to determine whether super is paid on top of or included in salaries.
- Adjust budget and payroll structures to accommodate the increase.
- Prepare for the payday superannuation model, which will be introduced in 2026 and require superannuation to be paid with each pay cycle.
2. Removal of Tax Deductibility for ATO Interest Charges
Beginning on 1 July 2025, businesses will no longer be able to claim deductions for the General Interest Charge (GIC) and the Shortfall Interest Charge (SIC) on overdue tax liabilities. This change will increase the cost of late tax payments and ATO payment plans, so you should avoid ATO debt or late payments whenever possible.
Recommended Actions:
- Review cash flow and finance strategies now to ensure resilience before July 2025.
- Speak with your accountant or financial advisor about the impact of these changes.
- Consider alternative financing solutions (e.g. business loans, or asset refinancing) to maintain liquidity and meet obligations.
- Upgrade payroll systems to ensure they can accommodate more frequent super payments ahead of the 2026 changes.
