The 2024–25 income year introduces several important tax measures and form updates that companies should factor into their 2025 company tax returns. Below is a concise guide to the headline changes and where to report them.

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1. $20,000 Instant Asset Write-Off Extended

• Who qualifies: “Small business entities” with turnover < $10 million.
• What it does: Allows an immediate deduction for each eligible depreciating asset costing under $20,000, acquired and first used or installed between 1 July 2024 and 30 June 2025.
• Lock-out suspension: The 5-year lock-out from re-entering the simplified depreciation regime is suspended until 30 June 2025.
• Where to claim:
  • Item 6 – label X: Depreciation expenses
  • Item 10 – label A: Deductions for certain assets

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2. Thin Capitalisation: Debt Deduction Creation Rules (DDCR)

• Legislation: Introduced by the Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024.
• Who it affects: Multinational businesses (including privately owned groups) with related-party debt arrangements.
• Key change: From 1 July 2024, certain related-party debt deductions are disallowed under the new DDCR (Subdivision 820-EAA ITAA 1997).
• Exemptions:
  • Entities (and associates) with ≤ $2 million of debt deductions per year
  • Securitisation vehicles, certain SPEs, plantation forestry entities, ADIs
• Where to report:
  • Answer Yes at Item 29 – label O (“Were thin capitalisation or DDCR applicable?”)
  • Attach the International dealings schedule 2025

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3. Build-to-Rent Development Incentives

• Effective: From 1 January 2025 under two Treasury Laws Amendment Acts (Responsible Buy Now Pay Later and Other Measures; Capital Works (Build to Rent Misuse Tax) Act 2024).
• Benefits for eligible developments (minimum 50 dwellings, ≥ 10% affordable, single owner):
  1. 4% p.a. accelerated capital works depreciation
  2. 15% concessional final withholding tax on distributions tied to rental income and capital gains
• Minimum tenure: Owners must satisfy conditions for at least 15 years, or face a misuse tax claw-back.
• Where to claim:
  • Item 7 – label Y: Build-to-rent capital works deduction at 4%
  • Item 7 – label I: Capital works deduction (if also claiming standard rate)

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4. Film Tax Offsets Update

• Legislation: Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024.
• Change: Modifications to the location and producer offsets for film production.
• Where to claim: Calculation statement – label E (“Refundable tax offsets”)

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5. Reducing Cheque-Based Refunds

• New power: ATO may hold certain refunds or credits for up to 90 days if valid Australian bank details aren’t supplied.
• Avoid delays: Ensure your company’s financial institution details are accurate when lodging.
• Notification: The ATO will contact you by letter, email, or myGov message if a refund is retained.

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6. Form Updates & Label Changes

• New label:
  • Item 7 – label Y: Build-to-rent capital works deduction at 4%
• Section/label renames:
  • Item 28 heading → Overseas interests and Australian branch operations
  • Item 28 – label Z: “Branch operations in Australia or overseas, or foreign trust/controlled foreign entity interests?”
  • Item 29 heading → Thin capitalisation and debt deduction creation
  • Item 29 – label O: “Were thin capitalisation or debt deduction creation rules applicable?”
• Removed labels from Item 7 – Reconciliation to taxable income or loss:
  • Label J: Small business skills and training boost
  • Label K: Small business energy incentive

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Next Steps for Companies

1. Assess asset purchases to maximize the $20k write-off.
2. Review financing structures for related-party debt under the new DDCR.
3. Evaluate eligibility if you’re involved in build-to-rent or film production.
4. Verify banking details to prevent refund delays.
5. Update your 2025 return to account for new and renamed labels.

For detailed guidance and record-keeping requirements, refer to the linked ATO guidance pages in the online instructions. Staying on top of these changes will ensure your company claims all entitlements and meets new compliance obligations when lodging your 2025 tax return.