As the 2025–26 financial year gets underway, it’s important to stay on top of the latest tax changes that could affect your health practice or contractor arrangement. Whether you’re a sole trader, allied health provider, or specialist, this guide from Healthbiz Accounting outlines everything you need to know — with facts verified directly from the ATO.
Important Tax Dates for 2025–26
| Deadline | Description |
|---|---|
| 1 July 2025 | Start of the 2025–26 financial year |
| 31 October 2025 | Deadline to register with a tax agent to qualify for extended 2025 tax lodgement dates |
| 31 March 2026 | 2025 tax lodgement due via tax agent (if you had over $20,000 tax debt in prior year) |
| 15 May 2026 | Standard 2025 tax lodgement deadline via tax agent (most individuals & sole traders) |
| 30 June 2026 | End of the 2025–26 financial year |
| 31 October 2026 | 2026 tax return deadline if self-lodging without a tax agent |
Work-From-Home Deduction: 70¢ Fixed Rate Method
If you’re working from home — even part-time — you may be eligible to use the ATO’s fixed rate method, now set at 70 cents per hour for the 2024–25 income year.
What’s Covered:
- Electricity and gas (lighting, heating/cooling)
- Phone and internet costs (home and mobile)
- Computer consumables and stationery
You can’t claim these items separately if you use the fixed rate.
What You Still Can Claim Separately:
- Decline in value (depreciation) of work equipment (e.g. desk, monitor, laptop)
- Repairs and maintenance of those assets
- Cleaning costs (if you use a dedicated home office)
Record Keeping Requirements:
- Keep a record of all actual hours worked from home (no estimates allowed)
- One bill or receipt for each category of running expense is required
Superannuation Guarantee: New Rate
From 1 July 2025, the Super Guarantee (SG) rate increases to 12%.
- Applies to employees’ ordinary time earnings
- Businesses should update payroll systems accordingly
Small Business Reminders
- Instant Asset Write-Off: The $20,000 threshold remains for eligible small businesses (turnover < $10M) for 2024-25 Financial Year
- GST Registration: Still required if turnover exceeds $75,000 in any 12-month period
- PAYG Instalments: Consider varying instalments if income has changed.
Other Key Considerations
- Division 293 Tax: Still applies to those earning over $250,000 — reducing super tax concessions
- Private Health Insurance Rebate: Remains income-tested. If you earn above the threshold, you may not be eligible for a rebate.
- Audit Insurance: With increased ATO activity, audit insurance is worth considering for added peace of mind
Final Tips for Health Professionals & Sole Traders
✔️ Use a registered tax agent like Healthbiz Accounting to:
- Access extended lodgement deadlines
- Maximise deductions (legitimately)
- Ensure full ATO compliance
✔️ Don’t leave it until June — the earlier you plan, the more options you have!
Need Help?
At Healthbiz Accounting, we specialise in tax, structure, and compliance support for health professionals and sole traders. Whether you work across multiple clinics or run your own practice, we’re here to make your tax year stress-free.
📧 Contact us today for tailored advice.