By Dale Bloor and Gavin Hard
July 2025

As 1 July 2025 has now past, a number of important changes to Australia’s tax and superannuation system have come into effect. While some of these updates will deliver financial benefits for individuals, others carry compliance risks or cost implications particularly for business owners.

Being aware of these changes now gives you the opportunity to plan ahead, avoid surprises, and make more informed financial decisions in the year ahead.

1. Super Guarantee Hits 12%

From 1 July 2025, the Superannuation Guarantee rate increased from 11.5% to 12%. This is the final step in a long plan to boost Australians’ retirement savings and represents a permanent change to the way employers calculate superannuation obligations.

For employees, this means a larger portion of their income is set aside for the future, an important boost in a climate where long-term financial security is increasingly top of mind.

For employers however, this creates an immediate increase in staffing costs. While a 0.5% rise may sound modest, the cumulative impact, particularly for businesses with many employees can be significant. Now is the time to review and adjust budgets or profit forecasts to accommodate the increased outlay.

2. The Tax Office Is Beefing Up Compliance

The 2025 Federal Budget delivered a fresh round of funding to the Australian Taxation Office, aimed squarely at strengthening its compliance programs. A major portion of this will support the ongoing work of the Tax Avoidance Taskforce, which continues to focus on ensuring individuals and businesses are meeting their obligations.

In practice, this means increased scrutiny of common pressure points such as trust distributions, work-related deductions, inter-entity loans, and property transactions. The Tax Office is also leveraging more sophisticated data-matching and risk-detection tools, drawing on third-party sources including banks, government agencies, and superannuation funds.

Now more than ever, keeping accurate records, preparing carefully, and seeking professional advice can help you avoid costly mistakes and give you greater peace of mind.

3. Tougher Stance on Payment Plans

With mounting political and economic pressure to recover outstanding liabilities, the Tax Office is adopting a firmer approach when it comes to payment arrangements. The leniency seen during the COVID years including extended terms, generous repayment windows, and automatic deferrals is well and truly over.

Businesses applying for new payment plans are now facing tougher eligibility requirements, shorter repayment terms, and more rigorous documentation requests. Extensions on existing arrangements are being closely reviewed.

This shift poses a particular challenge for small businesses that rely on staggered payments to manage cash flow. Forward planning and early communication with your adviser are essential. If you're carrying a tax debt, act early to understand your options and avoid getting caught off guard.

4. Beware the Cost of Tax Office Debt

From 1 July 2025, interest charged on outstanding tax debts will no longer be tax-deductible and at a current rate of around 11%, this makes such debt one of the most expensive forms of finance available.

To put it in perspective: not only are you paying double-digit interest, but you're also losing the ability to claim that cost as a business deduction. In contrast, many commercial finance solutions or overdraft facilities offer significantly lower interest rates and retain deductibility.

If you are currently carrying tax debt, or anticipate a shortfall in the months ahead, it’s important to consider alternative funding strategies. Structured finance, early refinancing, or even short-term working capital loans may reduce your total cost and limit the impact on your cash flow. Don’t let inertia turn a manageable obligation into a costly burden.

Need Help Navigating the New Rules?

The 2025-26 financial year brings with it a number of moving parts, some opportunities, and some pitfalls. Whether you’re a business owner needing cash flow modelling, an individual looking to adjust your tax strategy, or simply want reassurance that you’re on track, we’re here to help.

Our team can assist with navigating superannuation obligations, managing tax liabilities, and optimising your approach to the year ahead. Don’t wait for tax time to catch you off guard, reach out early and make confident, informed decisions.

GNP360 – A Community Business Model Transforming Gnowangerup

The Vision: Looking at the Whole Picture

GNP360’s vision is to "build a strong and vibrant atmosphere through incubating, nurturing, and supporting sustainable new businesses and community ventures in Gnowangerup." Their approach goes beyond community events or short-term fixes. Instead, they focus on creating tangible, long-term improvements that serve both residents and businesses now and into the future.

Their motto, "Investing in our future by considering the whole picture," reflects the organisation’s strategy: working on projects that are viable, needed, and embedded within the community's broader development goals.

Not One but a Series of Strategic Projects

Since inception, GNP360 has delivered several significant projects:

IGA Revitalisation: When the local IGA risked closure, GNP360 stepped in. The Co-Op renovated the store including commissioning incredible murals on the exterior of the store and successfully secured a new owner. This store had retained its place as a cornerstone of service for the community. Devastatingly for the community, the IGA recently had to close due to a fire and is now closed for the foreseeable future. However the passion that GNP360 has captured for the community has been reflected back 10 fold with the Shire, Co-Operative and operator banding together to ensure vulnerable people in the community still have access to food and other supplies with the next supermarket being a 130km round trip away.
Horsepower Highway: A creative regional tourism initiative, this trail features decorated tractors and installations across 75km leading to the Stirling Range. The project won multiple national tourism awards and raised the profile of the town. You can learn more at thehorsepowerhighway.com.au.
NAB Building Restoration: After securing the building, GNP360 transformed the former bank into an allied health hub, now hosting physiotherapy, pilates, massage, and supervised exercise programs.
Community Bus: The Co-Op purchased a group transport vehicle, now managed by the local CRC and used by school, sports, and senior groups.
Vacant Land Donation: GNP360 decommissioned a former fuel station site and gifted it to the Shire to become a youth-focused recreational precinct.

Each initiative is delivered with strong governance, careful financial management, and significant volunteer effort.

The Gnowangerup Hotel Project: Creating a Social and Economic Anchor

Currently, GNP360 is focused on a multi-stage renovation of the historic Gnowangerup Hotel. Their goal is to restore it as a vibrant hub for accommodation, dining, and community connection.

With limited local dining options and growing demand for short-term accommodation from CBH, contractors, and visitors to the Stirling Range, the project fills a clear gap. A full renovation is planned over several stages, supported by cropping revenue, grants, and new memberships. The end goal is to lease the business to a motivated operator aligned with the community’s values.

Built Like a Business

Unlike some Co-Ops that operate informally or rely on goodwill alone, GNP360 has taken a business-first approach. Directors are appointed based on skillsets and experience. The group regularly reviews its governance and compliance, sets clear project priorities, and maintains accountability to its 75+ members.

Cassandra Beeck, one of GNP360’s forming and still current directors, notes: *"We made sure our vision wasn’t just fluffy words. It guides everything we do. When someone asks us to take on a new project, we refer back to the vision to make sure it fits."

Lessons for Other Communities

GNP360 offers a strong case study in how a regional community can:

Form a Co-Op with a clear strategic focus
Embrace a business mindset from day one
Leverage social capital and community networks
Use small wins to build towards major outcomes

Their approach isn’t about short-term fixes, but building lasting infrastructure and services that enhance rural liveability.

Looking Ahead

As they continue the hotel renovation and begin planning future projects, the focus remains on making Gnowangerup a place where people of all ages want to live, work, and invest.

"We don’t have all the answers," said Cassandra, "but we’re not waiting for someone else to come fix things. We’re doing it ourselves, one step at a time."

To learn more about GNP360 and follow their progress, visit their F acebook page.

By Kym Arnold & Thomas Warner

Tax Time Tightens: What 2025 Means for Your Wallet