Practice Updates - April 2025

1. Production Tax Incentives for Critical Minerals and Renewable Hydrogen is now law 

Both the Critical Minerals Production Tax Incentive (CMPTI) and Hydrogen Production Tax Incentive (HPTI) are central components of the Australian Government’s Future Made in Australia framework. These initiatives share similarities with international programs designed to encourage renewable hydrogen production and boost value-added activities in resource-based economies.  

Businesses currently operating in—or looking to enter—the Australian energy and resources sectors should assess how these incentives could influence and potentially enhance the investment case for hydrogen and critical minerals projects in Australia. In particular, the CMPTI may make downstream refining and processing of Australia’s critical minerals more commercially attractive, especially for new entrants. Notably, there is no requirement under the CMPTI for the final product to be used within Australia. 

2. Treasury releases long-awaited draft Payday Super legislation 

Payday Super Legislation Released – Major Changes for Employers 

The Australian Treasury has released the long-awaited draft legislation for Payday Super, marking a significant reform in the superannuation system. The proposed changes are aimed at strengthening employer compliance and improving the timeliness of super contributions. 

Key Proposed Changes 

• Seven-Day Deadline: Employers must pay super within seven days of an employee’s payday. 

• Late Payment Penalties: Introduction of an ‘administrative uplift amount’—a penalty applied to late contributions, replacing the current nominal interest calculation. 

• Remission and Discretion: The ATO may remit penalties where employers demonstrate a history of compliance or voluntarily disclose errors early. Limited discretion will apply in exceptional circumstances such as public holidays or unforeseen events. 

• ATO’s Expanded Powers: The ATO can now issue Superannuation Guarantee Charge (SGC) assessments based on data from Single Touch Payroll (STP) and super fund reporting, without waiting for employer disclosures. 

What Should Employers Do Now? 

Although implementation is scheduled for 1 July 2026, the scope and complexity of the reforms mean preparation should begin immediately. Employers should: 

• Review payroll and onboarding systems to ensure timely and accurate super calculations. 

• Strengthen approval workflows and data validation to minimise delays and errors. 

• Engage tax, payroll and HR teams to align on a compliance action plan. 

Organisations that invest early in robust superannuation governance processes may benefit from reduced compliance risk and greater leniency under the new remission rules. 

3. Reminder of March 2025 Quarter Superannuation Guarantee (SG) & BAS. 

• Superannuation Guarantee (SG)

SG contributions for the 1 January – 31 March 2025 quarter must be received by employees’ super funds by 28 April 2025. Note: payments sent to a clearing house must be processed and received by the fund by the deadline—plan to avoid delays. 

Late SG payments trigger a mandatory Superannuation Guarantee Charge (SGC), which includes the unpaid SG amount, interest, and admin fees. The SGC is not tax-deductible and must be reported via an SGC statement by 28 May 2025. 

• Business Activity Statement (BAS) 

The BAS for the March quarter is also due on 28 April 2025. However, if you lodge electronically through a registered tax or BAS agent, you may be eligible for a concessional due date of 26 May 2025.  

To stay compliant and avoid penalties, ensure contributions and lodgments are made on time. Speak to Lynden Group if you need help reviewing your records or accessing online services. 

4. Support for Those Affected by Tropical Cyclone Alfred 

The Australian Taxation Office (ATO) has announced special lodgment concessions for individuals and businesses impacted by Ex-Tropical Cyclone Alfred in disaster-declared areas of New South Wales and Queensland. 

Key Lodgment Extensions: 

• Monthly BAS: Originally due 21 March 2025, now extended to 11 April 2025. 

• Income Tax Returns (Individuals, Trusts & Small Businesses): Originally due 31 March 2025, now extended to 11 April 2025. 

These extensions apply automatically for clients located in Local Government Areas (LGAs) eligible for the Australian Government Disaster Recovery Payment. 

What You Should Do: 

If you were affected, we recommend checking whether the ATO has applied the relevant disaster indicator to your account. This can be viewed through the On-Demand Outstanding Lodgment Report in the ATO’s Online Services for Agents. 

At Lynden Group, we understand how challenging this period can be. Our team is here to help you navigate any lodgment requirements, extensions, or relief options available. 

Get in touch with your Lynden Group advisor today or contact us here to speak with our support team. 

5. ATO shifts non-compliant small businesses to monthly GST 

The Australian Taxation Office (ATO) has announced that, starting 1 April 2025, approximately 3,500 small businesses with a history of non-compliance—such as late payments, non-lodgment, or incorrect reporting—will be transitioned from quarterly to monthly Goods and Services Tax (GST) reporting.  

This initiative aims to help these businesses better manage their tax obligations, improve cash flow, and prevent them from falling further behind. Monthly reporting allows for more frequent reconciliation, making it easier to stay on top of obligations. The ATO will notify affected businesses and their tax professionals about this change, which will remain in place for a minimum of 12 months as part of the ATO’s 'Getting it right' campaign.  

If this change impacts your business or if you're considering voluntarily switching to monthly GST reporting to enhance compliance and cash flow management, it's advisable to consult with our tax professional - Lynden Group. We can provide personalized guidance and assist with the transition process. 

6. Updates on Foreign Resident Capital Gains Tax (CGT) Withholding 

The start date for changes to the Foreign Resident Capital Gains Tax (CGT) Withholding regime has been deferred to 1 October 2025 (or the first day of the quarter after Royal Assent). 

Key updates include: 

• Withholding rate increase from 12.5% to 15% 

• Removal of the $750,000 threshold, meaning all property sales may now be subject to withholding 

• Australian sellers must obtain a clearance certificate to avoid withholding. These changes aim to improve tax compliance by foreign residents. 

  
  

7. After 1 July 2025 taxpayers will no longer be able to claim ATO interest charges. 

Effective 1 July 2025, taxpayers will no longer be able to claim deductions for General Interest Charges (GIC) and Shortfall Interest Charges (SIC) imposed by the Australian Taxation Office (ATO). This change applies to assessments for income years starting on or after this date. Consequently, any GIC or SIC amounts remitted by the ATO will not need to be included as assessable income. This measure, announced on 13 December 2023 as part of the 2023–24 Mid-Year Economic and Fiscal Outlook (MYEFO), has now been enacted into law 

Get in touch with Lynden Group advisor today to speak with our support team. We can provide personalized guidance and assist with the transition process.