Compliance
Compliance Essentials: Recent Changes for Non-Individual Tax Lodgments (2025)
Important updates for companies, trusts, funds, and partnerships—new form labels, deduction eligibility, and overseas transaction reporting to stay compliant.
By NomadicTax Research Team • 5 min read • November 22, 2025
## Overview of What’s Changed for 2025 Non-Individual Returns
The ATO has updated non-individual tax forms and schedules for the 2024–25 income tax year. These changes affect companies, trusts, partnerships, and managed investment trusts (MITs). Key modifications include new questions related to overseas interests, updated deductions, and the removal of previously available incentives. ([ato.gov.au](https://www.ato.gov.au/forms-and-instructions/tax-time-summary-of-non-individual-form-changes-2025?utm_source=openai))
## Key Updates & Actions Needed
- **New deduction:** “Build to Rent” capital works deduction at **4%** is now a label/item in the Company, Partnership, Trust, and MIT forms. If you own eligible residential projects to lease, this could reduce your taxable income. ([ato.gov.au](https://www.ato.gov.au/forms-and-instructions/tax-time-summary-of-non-individual-form-changes-2025?utm_source=openai))
- **Removed incentives:** The “Small business skills and training boost” and “Small business energy incentive” have been removed. If you planned deductions under these, reassess your budget and projections. ([ato.gov.au](https://www.ato.gov.au/forms-and-instructions/tax-time-summary-of-non-individual-form-changes-2025?utm_source=openai))
- **Overseas interests & branch operations:** New questions in several forms now ask whether you have foreign operations, trusts, foreign companies, or controlled entities. This increases transparency and risk of scrutiny. ([ato.gov.au](https://www.ato.gov.au/forms-and-instructions/tax-time-summary-of-non-individual-form-changes-2025?utm_source=openai))
- **Thin capitalisation and debt-deduction creation rules:** These regimes have changed labels and questionnaire formats. Be ready to answer more detailed questions if you're part of a group using debt financing. ([ato.gov.au](https://www.ato.gov.au/forms-and-instructions/tax-time-summary-of-non-individual-form-changes-2025?utm_source=openai))
## Practical Application Steps
1. **Review your current business activities**—do you engage in overseas operations or own foreign trusts? If so, gather accurate details now.
2. **Update accounting systems** and tax preparers to reflect changes: ensure they include the new label and removed incentives to avoid misreporting.
3. **Calculate eligibility** for the Build to Rent deduction: understand what qualifies as a project and capital works, especially timing and usage requirements.
4. **Debt structuring:** If relying on debt financing, closely monitor ceilings and documentation per new thin capitalisation and debt deduction rules.
## Example Case Study
**ABC Property Trust:** owns residential apartments to lease. In prior years, claimed energy incentive. Now, energy incentive removed, but qualifies for Build to Rent capital works at 4%. Must amend forecasting: energy incentive gone, but capital works deduction now adds new deduction category. Also must address foreign beneficiaries in trust and any thin capitalisation exposure in interest deductions.
**Takeaway:** Non-individual entities must adjust to new labels, removed incentives, and increased disclosures, especially for international operations. Early planning and updated advice will save time and penalties at lodgment.