Key Tax and Superannuation Changes You Need to Know

Here’s a round-up of the latest tax news and regulatory updates that could impact your business, investments, or retirement savings. If you’d like tailored guidance, please reach out to our team for advice.

20% Cut to Student Loan Debts – What does this mean?

The Federal Government’s commitment to reduce student loan balances by 20% has officially been legislated. With more than three million Australians holding some form of study debt, this reform will provide significant relief.

The reduction applies to all education-related loans, including VET Student Loans, Australian Apprenticeship Support Loans and even older arrangements such as the Student Financial Supplement Scheme.

If you held a student loan balance on 1 June 2025, you qualify. The discount is based on your debt at that date before indexation was added. Even if you’ve since made repayments or paid out your loan, the 20% will still be calculated on your June balance.

If you cleared your loan after 1 June, the reduction could place your ATO account in credit, which may result in a refund (provided you have no other tax liabilities).
Debts fully repaid before 1 June 2025 are not eligible.

The ATO is rolling out system updates and expects most reductions to be applied before the end of 2025. You don’t need to take action, the adjustment is automatic, and notifications will be available through myGov or the ATO app.

Important reminders:

Lodge your tax return as usual – don’t wait for your updated loan balance.
Update your bank details with the ATO if you may receive a refund.
If your loan is fully cleared, let your employer know to stop withholding extra repayments.

Productivity Commission Proposes Business Tax Reform

The Productivity Commission’s interim report, commissioned by the government to explore ways to lift productivity, suggests a suite of reforms to Australia’s business tax system.

Key concerns include Australia’s comparatively high company tax rate, the complexity of deduction rules for investments, and structural advantages for larger companies over smaller competitors.

The Commission’s draft recommendations include:

Reducing the company tax rate to 20% for businesses with annual revenue under $1 billion (with only the largest firms staying at 30%).
Introducing a 5% Net Cashflow Tax (NCT) on profits.
Allowing immediate deductions for the full cost of new investments (equipment, technology, property) rather than spreading claims over several years.

These proposals are still in consultation stage, with feedback open until 15 September 2025. A final report will be issued later this year, after which the government will decide whether to adopt and legislate changes. If approved, reforms could commence as early as 2026.

Treasurer Jim Chalmers has described the report as a valuable contribution to reform discussions but has not yet signalled government support for the specific measures.

Small Business Superannuation Clearing House to Close

If you’re one of the 200,000+ small businesses using the ATO’s Small Business Superannuation Clearing House (SBSCH), be aware that the service is being phased out as part of the new payday super reforms.

Key transition dates are:

1 October 2025 – new registrations will close.
30 June 2026 – last day existing users can submit payments.
1 July 2026 – the SBSCH will be permanently closed.

From July 2026, employers must pay super at the same time as wages, with contributions required to reach funds within seven days of each payday.

Options for replacement include:

Payroll software with integrated super payments.
Clearing house services offered by most super funds.
Independent commercial providers offering advanced compliance tools (usually fee-based).

The ATO advises transitioning early to ensure your systems are ready well before the 2026 deadline.

Ethical Investing: What to Watch Out For

Interest in ethical and sustainable investments continues to rise, but navigating ESG (environmental, social and governance) claims can be challenging.

Here’s what ESG may include:

Environmental: climate impact, carbon reduction, biodiversity, sustainable farming.
Social: gambling and tobacco exclusions, human rights, workplace diversity.
Governance: board composition, anti-bribery controls, transparency.

Because ESG definitions vary between funds and companies, it’s important to:

Identify which ESG factors matter most to you.
Look for detailed, measurable claims rather than vague promises.
Watch for “greenwashing” — exaggerated or misleading claims of sustainability.
Review investment screening approaches (positive vs negative screening).
Understand fee structures, as ESG funds can carry higher costs.

Careful research is essential to ensure your investments genuinely align with your values.

SMSFs: Don’t Miss Minimum Pension Payments

If you manage an SMSF, you must ensure all account-based pension members receive at least their minimum annual pension payment by 30 June each year.

The required payment is calculated as:

Account balance × percentage factor (based on age at 1 July).

Failing to meet the minimum payment rules may mean the pension is treated as having ceased, leading to:

Payments being reclassified as super lump sums (with different tax outcomes).
Loss of exempt current pension income (ECPI) claims.
Potential impacts on the member’s transfer balance account.

If standards aren’t met, a new income stream will need to be commenced, requiring revaluation of assets and recalculations of tax components.

Need Support?

For personalised tax guidance on how these developments could affect you, contact your local Accru advisor. Our team can help you manage compliance requirements and plan effectively for the future.