1st Quarter 2026

14 JULY 2025

• Payers must issue 2024-2025 PAYG Withholding payment summaries to payees (that is, employees and other workers). You may be exempt from giving payment summaries and a payment summary annual report for the amounts you reported through Single Touch Payroll (STP). This information will be made available to your employees as an income statement through ATO online services via myGov. To be exempt from issuing these payment summaries to your employees, you will need to make a STP finalisation declaration by 14 July 2025. It's important that you finalise your employees' data by 14 July 2025 if you can, and let your employees know when you have so they can lodge their income tax returns. You will still need to do a payment summary for any payments you don't report through STP.

Below is a summary of the key tax changes for individuals and business.

INDIVIDUALS

PERSONAL INCOME TAX CUTS

The 2025-2026 federal budget introduced a modest income tax cut for all taxpayers from 1 July 2026 and again from 1 July 2027.

If you are carrying an Australian Taxation Office (ATO) debt there is a good chance that it will cost, you even more from 1 July 2025 onwards. This is because from 1 July 2025 two types of interest charges imposed by the ATO are no longer deductible.

The Australian Taxation Office (ATO) is reminding employers of key tax and super obligations. This information can be especially useful for clients who have established a new business or who are engaging employees for the first time.