Individual Income tax rates and threshold changes 

Tax from 1 July 2025 is unchanged from 1 July 2024. Below is the tax rate for 2025-2026:

The above rates do not include the Medicare levy of 2%.

Work from home fixed rate

The fixed rate for work from home expenses for 2024–25 is 70c per hour.

Read more: https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/working-from-home-expenses/fixed-rate-method 

Cents per kilometer increase

The cents per kilometer rate for work-related car expenses for 2024–25 is 88c per kilometer.

Read more: https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/deductions-you-can-claim/cars-transport-and-travel/motor-vehicle-and-car-expenses/expenses-for-a-car-you-own-or-lease#ato-Calculatingyourcarexpensedeductionsandkeepingrecords

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 kilometer 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.

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.

In nutshell below FRCGW changes will affect you when selling and purchasing the property:

• All property is now subject to FRCGW rules, regardless of value
• Get clearance from the ATO
• Increase in rate of withholding from 12.5% to 15%
• Removal of $750,000 threshold
• Australian resident vendors need to obtain a clearance certificate from the ATO and give it to the purchaser to avoid withholding at settlement
• Purchasers need to obtain a clearance certificate from the vendor to avoid having a payment obligation at the settlement 

Book your tax time appointment with North Coast Accounting tax consultants and get the right advice for you.