Is your Christmas party tax deductible and other tax questions for the festive period…

Starting 1 July 2025, the ATO will introduce a significant change that will affect small businesses, sole traders, and individual taxpayers with unpaid tax debts. Interest charged on outstanding tax—known as the General Interest Charge (GIC)—will no longer be tax-deductible, creating a potential financial burden for many. How the change works. Currently, interest on unpaid tax debts can be claimed as a deduction, offsetting some of the cost against taxable income. From July 1, 2025, this will no longer be allowed. With the GIC rate at 11.17% per year, a $100,000 tax debt could cost $11,700 annually—entirely non-deductible. For taxpayers already stretched to their limits, this is a substantial new expense. The rule change will particularly affect, small business owners and sole traders, individuals on payment plans who owe personal tax, and property investors who miss BAS or PAYG instalments. Many taxpayers use outstanding tax payments to manage cash flow and fund business operations. Removing the deductibility of GIC adds a layer of financial pressure that could contribute to business failure or, in extreme cases, bankruptcy. If this is you, you should contact us so we can discuss your options with you. Strategies to manage the impact. Some taxpayers may consider borrowing funds to pay off their ATO debt, as interest on the loan could potentially be claimed as a tax deduction. However, the borrowed funds must be used for income-producing purposes, and the loan must be properly structured and documented. Simply taking out a loan to clear a tax debt does not automatically make the interest deductible. In any case, borrowing may not even be an option for you. Those with ATO debts often owe because their finances are already stretched to the limit. Professional advice is critical. With the GIC and shortfall interest charge in play, seeking expert guidance is essential. A qualified tax agent can: Review your current tax obligations. Explore potential strategies to minimise financial impact. Ensure any loan or payment arrangement is structured correctly for deductibility.  Early advice and planning can make a real difference in managing cash flow and avoiding unexpected penalties. Don’t wait — let us help you now to protect your business and personal finances.

At the moment, more than 15 million Australians are preparing their tax returns—if they haven’t already. Around 60% will use an accountant, while the rest will lodge through their MyGov account. Whatever method you use to lodge your return, the ATO is doing their due diligence. But, even with the ATO heavily scrutinising every claim, people are still tempted to cut corners. Some even willingly attempt to cheat the system, hoping not to get caught… Did you know the ATO receiving around 1,000 tip-offs regarding illegal tax returns every week? They investigate around 90% of them. It’s never been more important to get things right. Here’s what to keep in mind this year. Preparing your return. These days, the ATO prefills much of your income information, from wages to some bank interest and dividends. You’ll know your income statement is “tax ready” when your MyGov account confirms it. But don’t rush to lodge on July 1. Other items—like managed fund distributions, bank interest, and private health insurance—may take longer to appear. Always check prefilled data for accuracy and add in any missing information such as: Capital gains from investments. Income from a second job or contracting work. Overseas income. Rental income. Some details are only partially prefilled, so double-check that all questions are answered before submitting. Claiming deductions. To claim a deduction, three rules apply: You must have spent the money yourself (and not been reimbursed). The expense must be directly related to earning your income. You must have a record to prove it—a receipt or diary entry. The ATO’s myDeductions app is a handy way to store and organise receipts. ATO Focus Areas for 2025. Each year, the ATO highlights specific areas it will scrutinise. For 2025, these are the big four: 1. Working from home expenses. Two methods apply here. Fixed-rate method – claim 70c per hour worked from home. Covers energy, phone, internet. Requires a record of hours, but no receipts. Actual-cost method —claim the real costs of a dedicated office space. Requires receipts and no private use of the area. Remember: you can’t claim home loan interest or rent unless you’re running a business from home, and personal items (like coffee machines) are not deductible. 2. Motor vehicle expenses. Again, there are two options here to work out your motor vehicle expenses. Please note, you can’t combine these methods. Logbook method —keep a 12-week record to calculate business use %. Apply this to expenses. Cents per kilometre method —claim 88c per km up to 5,000km. No receipts required, but you must justify your claim. 3. Rental properties. Interest deductions apply only to the rental property loan, not your personal home. You can only claim your share of expenses (e.g. 50% ownership = 50% of costs). If you have a holiday home, this is only deductible for the period it was genuinely rented out. 4. Cryptocurrency & gig economy income. Buying, selling, or swapping crypto triggers capital gains or losses that must be declared. Income from gig work, rideshare driving, food delivery, or online sales must also be included. Don’t be tempted to cheat. The ATO uses advanced data matching across banks, employers, share registries, and even internet platforms. If claims don’t line up, expect questions. Penalties for false claims range from 25% to 75% of the tax owed. Some of the stranger (and rejected) claims in recent years include: Lego, school uniforms, and kids’ sporting gear. $9,000 worth of wine consumed on a holiday. A conference claim for an event the taxpayer didn’t attend. If your claim doesn’t directly relate to earning income, don’t even try it. If you make a mistake… Mistakes happen—the ATO realises this. If you realise something’s wrong, you can amend your return through myTax. The ATO generally won’t penalise you if you’ve taken reasonable care, but you will need to repay any shortfall. Additionally, mistakes can mean your accountant will have to liaise with the ATO on your behalf. This comes with additional fees for their time. Lodgement dates. The deadline for lodging your own return is 31 October 2025. If you’re using a registered tax agent like Ascent Accounting, you’ll usually have longer to lodge—even up until the 15th May 2026. This is provided you’re on their books before the cut-off, you’re not a high-income earner, and you don’t have a bad lodgement history. Get your 2025 tax return right with professional support. Tax time can feel overwhelming, but you don’t have to go it alone. We’ll help you identify every deduction you’re legitimately entitled to and make sure your return is accurate and compliant. If you’d like professional support preparing your 2025 tax return—and maximising your outcome— talk to us today.

In today’s market, buyers are more informed (and more particular) than ever. With online listings, comparison tools, and endless property research at their fingertips, even small details can make or break the value of your home. Some factors—like location, block size, or nearby amenities—are out of your control. But many of the elements that shape your sale price come down to the choices you make before listing. At Ascent Property Co., we see it every week: sellers who invest time into avoiding simple pitfalls consistently achieve stronger results. From the finance side, we often help clients prepare for the tax and financial implications of their property sale—meaning the effort you put in now can pay off well beyond the settlement date. Here are the most common things that devalue a property in 2025 (and how you can avoid them). 1. Poor presentation & clutter. Presentation is your silent salesperson and unfortunately, mess speak volumes. Buyers want to see light, space, and potential—not worn armchairs, cluttered bookshelves, or wardrobes bursting at the seams. This includes property photos online—not just private walk-throughs and home-opens. Presentation shapes first impressions online and in person, and we all know first impressions are everything. So, what can you do maximise presentation? Declutter and store away bulky or overly personal items. Deep clean of every surface, including built-in storage like kitchen cupboards and walk-in wardrobes (buyers always check storage). If you want to go to the ‘nth’ degree, put away anything that reflects you, like family photos, so potential buyers can start imagining the space as their own from the get-go. If budget allows, consider professional styling—properties that are styled often sell faster and for a higher price. 2. Loud colours & quirky décor. Of course, your home should feel like you—a place that reflects your style and brings you joy. But when it comes to selling, the rules shift. That bold purple feature wall might be your signature, but most buyers are looking for a neutral canvas. Details and décor that are too loud or eccentric makes it harder for people to imagine their own life in the space. Additionally, most people want a move-in ready home. If they have to spend time and money painting over statement choices, it feels like an instant project—and many won’t want the hassle. Repaint walls in warm, neutral shades. Scale furniture to the room—oversized pieces make spaces feel smaller. Tuck away statement ornaments and décor. For example, remove any particularly bold artworks and replace them with more neutral pieces. These don’t have to be expensive. Kmart, for example, has heaps of affordable neutral prints and artworks perfect for home opens. Remember, it’s not about discrediting the space you’ve loved—it’s about setting up your sale for success. A neutral home appeals to the widest pool of buyers, maximising demand and sale price. 3. Unpleasant odours. This seems obvious, but you’d be surprised at how often people walk into a home that smells less than pleasant. Odour is a deal-breaker! Pet odours, damp, stale air, or drain smells can push buyers out the door before they’ve seen the living room. Sometimes when you live in a space, certain scents wash over you and you don’t even notice them anymore. Invite a friend for an honest “sniff test.” Steam-clean carpets, wash linens and curtains (if possible), and open windows every day to circulate fresh air. Deal with any leaks or mould at the source, not just the symptoms. Avoid using strong garden fertilisers before inspections. Buyers focus on what their senses are telling them. If they’re distracted by odours, they’re not picturing themselves living happily in the space. 4. General disrepair. Even in a prestige suburb, visible neglect hurts your bottom line. Buyers add up repair costs in their heads—and lower their offers accordingly. A home that looks well maintained reassures buyers that it’s structurally sound and not a hidden money pit. Refresh paintwork, grout, and silicone. Replace worn carpet and polish floors. Fix jammed doors, squeaky hinges, and sticking windows. Tidy sheds and garages to signal care and order. Repair cracked tiles or chipped benchtops. Service air conditioning units and fix squeaky ceiling fans. 5. Neglected street appeal Like online images, kerb appeal massively sets expectations. Overgrown lawns, flaking paint, or a cluttered front porch can sour the mood before buyers even step inside. On the other hand, a fresh, welcoming exterior tells buyers: This home has been loved and looked after. Mow lawns, trim hedges, and pull weeds. Clear out gutters. Pressure clean your driveway and/or porch and sweep paths. Wash or repaint the façade and front door. Replace old house numbers, letterboxes, or outdoor lights. 6. DIY jobs gone wrong. If you’ve tackled DIY projects around the house, you’ll know the satisfaction of getting hands-on. But when the results aren’t up to scratch, that pride can quickly turn into regret. Crooked tiles, patchy paint, and dodgy finishes instantly devalue a home. Buyers see corner-cutting and factor in the cost of professional fixes. Shoddy work tells them they’ll spend more fixing mistakes, and they’ll lower their offers to cover it. Only tackle tasks you can complete to a professional standard. Use licensed trades for plumbing, gas, and electrical work. If something’s not right, fix it before open homes. 7. Illegal home improvements. That deck or extra bedroom you added without council approval? If it’s not signed off, it’s not legally part of your property listing. And once buyers discover the truth, they’ll slash their offer or walk away completely. Legal compliance isn’t just about ticking a box—it protects your sale from unravelling at the eleventh hour. Check with your council on how to lodge paperwork for any unapproved works (yes, you can do this retrospectively). Secure final certificates before listing. If approvals aren’t possible, be prepared to price the home as if those spaces don’t exist. 8. Outdated kitchens & bathrooms. It’s a well-known fact that kitchens and bathrooms sell homes. Outdated ones can kill enthusiasm fast. Buyers see ageing tapware and dated cabinetry as “instant renovation bills.” Fresh, clean kitchens and bathrooms help buyers imagine moving straight in—not budgeting for a gut-and-replace. Prioritise small upgrades: new tapware, handles, splashbacks, or lighting. Degrease rangehoods, scrub tiles, and replace cracked or mouldy grout. If budget allows, modern benchtops and appliances make a huge impact. 9. Choosing the wrong agent. The wrong agent can cost you more than a bad paint job or a tired kitchen. Without the right strategy, presentation, and negotiation, your property can linger on the market and ultimately sell for less. Research and interview multiple agents to find the right fit. Look at reviews from home owners who have sold with them before.  Choose someone who communicates clearly, listens to your goals, and has proven results. The right agent doesn’t just sell your home—they sell it well. They position it for maximum interest and negotiate hard on your behalf. Bringing it all together. Selling a home is both a financial and emotional decision. On one hand, you want the best possible return for all your years of investment. On the other, you want the process to feel smooth and stress-free. That’s why Ascent brings both sides of the equation together. Ascent Property Co. works alongside you to present, market, and sell your property for its true worth. Ascent Accountants help you understand the tax implications, plan for your next step, and maximise your financial outcome.

If your business provides a car to an employee (or you’re the business owner/employee using it), there’s a good chance the Fringe Benefits Tax (FBT) rules apply. A car fringe benefit arises when a car owned or leased by an employer is made available for the private use of the business owner, an employee or their associate (such as a family member). “Private use” doesn’t just mean weekend road trips — it can include everyday commuting and even cases where the car is parked at an employee’s home, making it available for personal trips. Understanding how FBT is calculated and what records to keep is essential for compliance — and for avoiding paying more tax than necessary. What counts as a “car” for FBT purposes? The FBT law defines a car as a motor vehicle (except a motorcycle or similar) designed to carry less than one tonne and fewer than nine passengers. From 1 July 2022, some zero or low-emission vehicles are exempt from FBT, provided they meet certain criteria — for example, they must be first held and used after 1 July 2022 and must not have attracted Luxury Car Tax. Electric vehicle running costs, such as charging, are also exempt when the vehicle itself qualifies. Two main methods for calculating FBT on cars There are two ways to calculate the taxable value of a car fringe benefit. 1. Statutory formula method This method applies a flat 20% statutory rate to the base value of the car, adjusted for the number of days in the FBT year the car was available for private use. The formula is: (A × B × C ÷ D) − E A = Base value of the car (cost price plus GST and certain accessories, less registration, stamp duty and eligible reductions) B = Statutory fraction (generally 20%) C = Days available for private use D = Total days in FBT year (365) E = Employee contributions If the car has been owned for at least four full FBT years, the base value can be reduced by one-third. 2. Operating cost method This method calculates the taxable value by applying the private use percentage to the total operating costs of the car (actual and deemed costs). The formula is: Taxable value = [Operating costs × (100% − Business use %)] − Employee contributions Operating costs include: Fuel, oil, repairs, maintenance, registration and insurance Lease costs (for leased cars) Deemed depreciation (25% diminishing value) and deemed interest for owned cars Certain costs, such as tolls, car parking and insurance-funded repairs, are excluded. The business use percentage is determined by odometer readings, logbook records, and a reasonable estimate based on usage patterns. The three-month logbook requirement (operating cost method only). If you use the operating cost method, you must keep a logbook for at least 12 continuous weeks (roughly three months) to record: The date of each trip Odometer readings at the start and end Total kilometres travelled Whether the trip was for business or private purposes The purpose of each business trip This logbook is generally valid for five years, but you must start a new one if usage patterns change significantly (e.g., a role change, relocation or different duties). You also need to record odometer readings at the start and end of each FBT year. Why record-keeping matters. Keeping accurate records can support a higher business use percentage (and therefore a lower FBT bill). They also ensure you claim only legitimate business kilometres and help you provide evidence if the ATO reviews your FBT calculation. Finally, your records help you decide which calculation method (statutory or operating cost) is more tax-effective. Key takeaways for businesses and employees. If a car is available for private use, FBT may apply — even if the car isn’t driven often for personal trips. Electric cars may be FBT-exempt if they meet eligibility criteria, but you may still need to calculate their taxable value for reporting purposes. The operating cost method often works better if business use is high — but only if you have a compliant logbook. Keep odometer readings, expense records and a valid logbook to support your claims. Need help with your FBT obligations? Get it at Ascent Accountants. We guide business owners through every step of FBT compliance — from choosing the right valuation method to maintaining the right records for ATO peace of mind. If you provide cars to employees or use a company vehicle yourself, now is the time to review your FBT position before the next FBT year rolls over. Let’s talk .

Hey FIFO workers. You work hard for your money. Let’s make it work hard for you this EOFY. Tax time it’s your chance to set yourself up for long-term financial security. From deductions and super to loan reviews and goal setting, our FIFO EOFY checklist can help you turn your hard-earned income into lasting wealth.